So you’re new to the Flare Network and see all these token acronyms being thrown around. It feels like a lot to wrap our heads around, but in practice it’s pretty simple as we are going to show you in this article.
FLR
Flare (FLR) is the native token of the Flare Network ecosystem. This token is used to make payments, pay for transaction fees, stake in validator nodes on the p-chain, and enable various applications like DeFi, NFTs, metaverse, and gaming.
Users with FLR can use it in a way similar to how ETH is used on Ethereum, but in a faster, cheaper and more efficient way. By holding FLR, they can also participate in the governance of the Flare Network through voting and influence decisions about future developments.
wFLR
Wrapped Flare (wFLR) is the Flare Token, wrapped into an ERC-20 variant, to represent FLR on Ethereum-compatible platforms and greatly expand its utility. Much like FLR, wFLR can be delegated to FTSO data providers on the c-chain or staked to participate in governance.
FTSO stands for Flare Time Series Oracle, a decentralized system that provides real-time data to smart contracts on the network. Think of the FTSO as a reliable source of information for applications built on the platform. The FTSO aggregates data from various independent data providers who collect information from centralized and decentralized exchanges. These data points are weighted based on the provider's stake and any delegated wFLR to reflect community trust. A final price estimate is calculated and published on-chain. Data providers contributing accurate price information are rewarded with FLR, which is then distributed to those who delegated with them.
Users can mint wFLR by connecting to the Flare Portal, depositing native FLR tokens and withdrawing the newly minted tokens.
sFLR
Sceptre Staked Flare (sFLR) is the token users receive when liquid staking their FLR or wFLR with our platform, Sceptre. Sceptre claims the staking/delegation rewards and FlareDrops for users and adds them to a pool, increasing the exchange rate of sFLR versus FLR. This means that when users unstake their tokens, they will always receive more wFLR than what they originally deposited. These rewards are added to the pool as soon as the FlareDrop is distributed.
The sFLR users receive in their wallet for staking FLR or wFLR can be used to earn additional yield in other protocols within the Flare Network, like Liquidity Pools or Yield Farms.
Unlike the other two tokens, sFLR doesn’t give users the right to participate in governance decisions. To do so, they would have to unstake their FLR or wFLR.
If you still have questions about Sceptre or any of the tokens we talked about, please reach out to our team or ask the Sceptre community on our Telegram and Discord channels.
Commentaires