Answering the common questions about the BSC integration
We have received an opportunity to expand Freeliquid to Binance Smart Chain (BSC). We would like to present a proposal to our users and clarify some details in the form of Q&A in this Medium article.
What does “expanding” to BSC mean? Will two Protocols (ETH vs BSC) be connected in any way?
Essentially, Freeliquid smart contracts will be forked and adjusted to BSC. The only “connection” will be a bridge for FL and USDFL tokens between two blockchains — apart from that, both platforms will be independent.
What are the reasons for this decision?
We do not want to miss new markets and more opportunities for attracting liquidity to our Protocol. In fact, BSC can offer several advantages:
- Since BSC is an Ethereum fork, the smart contracts of Freeliquid must not be written from scratch but only adjusted
- Despite the whole discussion around BSC being (de-)centralized, we believe that it is suitable for hosting a DeFi lending platform like Freeliquid. That is, people will be able to use the Protocol remaining fully anonymous and without any third party.
- A lot of liquidity in stablecoin pools as well (e.g., on Pancake Swap), which will probably grow further
- Lower fees compared to Ethereum network
What happens to FL and USDFL tokens?
They will be interchangeable between two chains via a bridge. There will be no additional FL generated. USDFL will be issued against collaterals, same as it is happening now on the Ethereum chain.
What will governance look like on BSC?
If we fork the Ethereum contracts to BSC (which is currently the plan), adjusting parameters of Freeliquid should happen the same way — via the governance platform by using FL for voting.
Will the FL distribution programs (Freeliquid Reward) continue on BSC?
No. The main purpose of these programs have been to distribute our governance token and reward users that have been the first providers of FL and USDFL liquidity. Since the whole limited supply of FL (1 Mil) will be distributed on Ethereum network only, there is no need for FL distribution on BSC.
Which pools will be supported as collateral by Freeliquid on BSC?
We will focus again on stablecoin pools with specific pairs to be named later.
We are planning to finalize the integration as early as possible, preferably in early Q2 2021. Please stay tuned for any timeline adjustments — there is still some work and testing to be made.
Will the expansion to BSC affect the current development on Ethereum blockchain?
No, we will be scaling our team, adding developers that will be focused solely on BSC integration. All tasks and deadlines in the current roadmap should be unaffected and remain as they were.
Are there any marketing plans for promoting Freeliquid on BSC?
Sure. As we approach the final stages of integration, we will start spreading the word about Freeliquid on BSC as well.
Once again, we would like to assure FL holders and current users of Freeliquid that this will not affect the current platform on Ethereum in any way. The FL supply remains unaffected, as well as all the timings in the current roadmap.
Freeliquid will aim to be among the first lending platforms that will offer funding for liquidity providers on BSC — please follow our announcement channels for updates that will come soon! As always, we appreciate any feedback from community in our Telegram chat.