Flare’s FAsset Test Collateral Limited to $300k for Code

The
FAsset
test
on
Songbird,
Flare’s
canary
network,
has
been
the
center
of
attention
lately
due
to
its
specific
design
and
inherent
limitations.
Hugo
Philion,
the
co-founder
of
Flare,
recently
elucidated
the
current
status
of
this
testing
phase,
offering
insight
into
the
rationale
behind
its
constraints.

Philion
underscored
that
the
FAsset
test
has
been
intentionally
designed
to
be
limited.
The
issuance
of
FAsset
is
restricted
by
both
a
$2
million
per
asset
cap
and
the
amount
of
agent
and
pool
collateral
available.
This
limitation
is
not
incidental
but
rather
strategically
planned
to
ensure
the
smooth
and
secure
functioning
of
the
system
during
the
testing
phase.

The
question
raised
by
the
community
was:
why
don’t
agents
provide
more
collateral
to
maximize
minting
up
to
the
cap?
Philion
addressed
this
query
by
highlighting
the
calculated
risk
coverage
during
the
testing
phase.
Flare
Labs
covers
up
to
$300,000
of
potential
risks
arising
from
code-related
exploits.
While
agents
are
theoretically
allowed
to
put
forth
more
collateral,
the
risk
of
incurring
losses
beyond
the
covered
limit
of
$300,000
makes
them
cautious
to
do
so.

This
cap
will
remain
in
place
until
the
testing
concludes
and
FAssets
fully
transition
to
Flare’s
main
network.
Philion
noted
that
expanding
the
test
system’s
scale
beyond
this
point
wouldn’t
provide
any
additional
benefits.

This
cautious
approach
highlights
Flare’s
commitment
to
ensuring
system
security
and
stability
before
moving
to
full-scale
operations.
It
also
shows
the
measured
steps
Flare
is
taking
to
instill
confidence
within
its
ecosystem.
As
recently
reported
by
Crypto
News
Flash,
Flare
has
partnered
with
ChainPatrol
to
enhance
its
Web3
security.

This
collaboration
aims
to
mitigate
common
risks
such
as
phishing,
social
engineering,
and
impersonation.
It
provides
an
added
layer
of
protection
for
Flare’s
users
on
platforms
like
Discord,
Slack,
and
Telegram
bots
through
real-time
threat
monitoring.
This
move
reinforces
Flare’s
commitment
to
user
safety.

Flare’s
native
token,
FLR,
has
been
experiencing
fluctuations
in
the
market
recently.
At
the
time
of
writing,
FLR
is
trading
at
approximately
$0.02598,
marking
a
13.04%
decrease
over
the
past
week
and
a
3.25%
decline
over
the
last
24
hours.
These
recent
movements
underscore
the
volatile
nature
of
the
crypto
market
and
the
need
for
investors
to
stay
informed
and
cautious.