Kinetic Markets has emerged as one of the most exciting decentralized finance (DeFi) protocols in 2024. As the first lending and borrowing platform built on the Flare Network, Kinetic empowers users to unlock liquidity, earn rewards, and participate in decentralized financial opportunities.
This year saw the successful mainnet launch of Kinetic Markets, the introduction of its native token JOULE, and the integration of transparent analytics through Dune Dashboards. With the upcoming launch of FAssets, the platform is poised to redefine how users interact with assets like Bitcoin (BTC) and XRP.
Kinetic Markets: A Game-Changer in DeFi with a Successful Mainnet Launch
In 2024, Kinetic Markets established itself as a leading force in decentralized finance (DeFi) with the successful launch of its mainnet on the Flare Network. Designed to deliver seamless lending and borrowing services, Kinetic empowers users to unlock liquidity, earn yields, and maximize capital efficiency—all without intermediaries.
Built on Flare’s decentralized infrastructure, Kinetic leverages the Flare Time Series Oracle (FTSO) to ensure precise, real-time price feeds for all supported assets. By removing reliance on centralized oracles, Kinetic enhances trust and reliability across its lending markets. This decentralized approach makes it a secure, transparent platform for both liquidity providers and borrowers.
From its launch, Kinetic introduced a suite of tools that quickly resonated with DeFi participants. Users gained access to permissionless lending, the ability to supply digital assets as collateral, and competitive borrowing opportunities. The protocol’s user-friendly interface and robust design helped drive adoption, resulting in steady growth in TVL to $15 Million, and increasing user activity throughout the year.
Kinetic’s long-term vision sets it apart. The platform’s architecture supports future integrations, such as FAssets, which will bring non-smart contract tokens like Bitcoin (BTC) and XRP into the DeFi space. This capability positions Kinetic as a key bridge for traditional assets seeking new utility in decentralized finance.
The successful mainnet launch laid the foundation for Kinetic Markets to grow into one of the most promising DeFi protocols. By delivering essential financial tools with speed, security, and flexibility, Kinetic has become a game-changer for users across the Flare ecosystem. As adoption continues to rise, the platform’s innovative approach ensures it will remain at the forefront of DeFi’s evolution.
The Launch of JOULE: Powering Kinetic’s Ecosystem
Following its mainnet debut, Kinetic introduced its native utility token, JOULE. The launch of JOULE brought new opportunities for users to earn rewards, participate in governance, and unlock financial benefits.
JOULE plays a central role in the Kii Stake Program, a reward system designed to encourage long-term participation. Users who stake their JOULE tokens earn Kii, a non-transferable reward token that unlocks tiered benefits, including interest rebates on borrowing.
This reward structure promotes stability and sustainability for the protocol. Users must wait for a 90-day cooldown period to convert Kii back into JOULE, encouraging long-term holding. For those seeking instant liquidity, a burn penalty applies, ensuring economic balance within the ecosystem.
JOULE also empowers users to guide Kinetic’s future through decentralized governance. Token holders gain voting rights, allowing them to influence protocol upgrades, risk parameters, and key decisions. This governance model keeps the community at the center of Kinetic’s growth.
The introduction of JOULE was met with strong adoption, especially following its listing on exchanges like ProBit Global. The token’s growing utility reflects its importance to Kinetic’s long-term success.
Kinetic Markets and Dune Analytics: Real-Time Transparency
To enhance transparency and accessibility, Kinetic Markets integrated with Dune Analytics this year. Through Dune dashboards, users can track real-time metrics such as total value locked, borrowing trends, and platform activity.
This integration offers clear, data-driven insights for both liquidity providers and borrowers. Users can analyze Kinetic’s growth, monitor performance, and make informed decisions. The availability of real-time analytics strengthens trust in the platform while showcasing its consistent adoption.
Beyond Kinetic, other Flare-based projects, including SparkDEX and Sceptre, have also launched Dune dashboards. Together, these tools provide a comprehensive view of Flare’s expanding DeFi ecosystem, with Kinetic at the forefront of activity.
Kinetic Markets and Sceptre: Strengthening Liquidity for DeFi Growth
In 2024, Kinetic Markets partnered with Sceptre to enhance decentralized finance (DeFi) on the Flare Network. Sceptre, known for its advanced liquidity solutions, integrates automated liquidity management into Kinetic’s lending and borrowing platform. This partnership ensures deeper liquidity pools, reduced borrowing slippage, and more efficient capital deployment. Liquidity providers benefit from optimized yields, while borrowers experience improved rates and seamless access to funds.
The collaboration marks a major step forward for Flare’s DeFi ecosystem. By combining Kinetic’s secure lending services with Sceptre’s liquidity tools, both platforms deliver greater efficiency and accessibility to users. The partnership strengthens Flare’s financial infrastructure and positions Kinetic and Sceptre as key drivers of DeFi innovation. As adoption grows, this synergy will attract more users, capital, and developers, fueling sustainable growth into 2025 and beyond.
FAssets: Unlocking New Liquidity for Kinetic Markets and Beyond
The introduction of FAssets marks a turning point for decentralized finance (DeFi) and the Flare ecosystem, bringing non-smart contract tokens like Bitcoin (BTC), XRP, and Dogecoin (DOGE) into DeFi protocols like Kinetic Markets. On December 18, 2024, the first FAsset, FXRP, went live on Flare’s Songbird Network, signaling the start of this innovative system’s real-world testing phase.
FXRP on Songbird: A New Era Begins
The launch of FXRP on Songbird follows a successful open beta phase that demonstrated the FAssets system’s resilience. During the beta, over 700,000 transactions occurred, and more than 48,000 participants engaged with the system. This robust testing provided valuable insights into user behavior and system performance, paving the way for FXRP to transition to a live test on Songbird.
In the Songbird phase, FXRP introduces features designed for more accurate testing with real monetary value. Participants can now mint FXRP using SGB, Songbird’s native token, or USDX, a stablecoin available on the network, as collateral. This shift ensures that behaviors during testing align more closely with real-world scenarios, making it a crucial step toward the full mainnet launch.
We’ve had a fantastic 2024 at Kinetic but we’re even more excited for the possibilities and opportunities that await us and our users in 2025. Kinetic phase two incoming!”
-Jake Hunsbusher, Communication Director
Notable advancements include the optional “handshake” process for permissioned agents. This feature allows agents to verify transaction addresses and reject malicious activity, improving security without sacrificing the decentralized nature of the system. With enhanced safeguards like a $2 million minting cap per asset and Flare Labs covering losses up to $300,000, the Songbird test is designed to balance innovation with user protection.
Expanding Kinetic Markets with FAssets
The launch of FXRP on Songbird sets the stage for integration into Kinetic Markets, where FAssets will unlock new opportunities for lending, borrowing, and yield generation. Once fully implemented, FAssets will allow users to bring previously idle assets, such as Bitcoin and XRP, into the DeFi space. These assets can then be supplied as collateral on Kinetic or used to borrow funds, earn interest, and access deeper liquidity pools.
The overcollateralization model underlying FAssets ensures that every bridged unit is backed by greater value, enhancing trust and security for all participants. This approach mitigates risks commonly associated with traditional custodial and multisignature systems, making FAssets an ideal solution for integrating high-value assets into DeFi.
For Kinetic, this integration means access to a broader range of assets, significantly increasing the platform’s total value locked (TVL). With the ability to support non-smart contract tokens, Kinetic becomes a bridge between traditional cryptocurrency holders and the opportunities offered by decentralized finance.
Incentives Driving Adoption
Participants in the FXRP Songbird test have much to gain. Flare has allocated $260,000 in rFLR for retroactive rewards, incentivizing users to mint, redeem, and provide collateral for FAssets. Users engaging in liquidations and trading FAssets on decentralized exchanges like BlazeSwap and Enosys will also earn rewards through incentivized pools. This incentive structure ensures strong participation while encouraging real-world testing under various conditions.
The ongoing tests of FXRP, followed by FBTC and FDOGE, will last a minimum of six weeks per asset, ensuring that the system is thoroughly evaluated before its eventual mainnet rollout. These real-world tests will fine-tune the system for integration into platforms like Kinetic Markets, where they will unlock multi-trillion-dollar liquidity markets.
A Gateway to Multi-Ecosystem Liquidity
FAssets serve as a crucial innovation for Flare’s vision of becoming a liquidity hub connecting multiple ecosystems. By enabling XRP, BTC, and DOGE to interact with smart contracts, FAssets bridge previously siloed assets into DeFi. This capability transforms them into tools for trading, lending, and staking, unlocking their full potential across decentralized markets.
For Kinetic Markets, this integration expands its appeal to a wider user base, from XRP holders seeking to access DeFi to Bitcoin enthusiasts looking to put their assets to work. With FXRP live and more FAssets on the way, Kinetic is positioned to leverage this breakthrough to offer new financial tools and drive further adoption.
As FXRP progresses through its testing phase on Songbird and moves closer to full deployment, it signals the beginning of a new era for Kinetic Markets and Flare. By combining security, scalability, and accessibility, FAssets promise to bring unparalleled opportunities to the DeFi space in 2025 and beyond.
Looking Ahead: Kinetic Markets in 2025
As we enter 2025, Kinetic Markets is set to build on the foundation it laid this year. The launch of FAssets will expand collateral options, unlocking billions of dollars in liquidity. With BTC, XRP, and DOGE joining the platform, Kinetic will attract an even broader audience.
The JOULE token will remain central to Kinetic’s growth. The expansion of the Kii Stake Program and new governance opportunities will add more value for users. By rewarding long-term participation, Kinetic will maintain stability while incentivizing activity.
As Kinetic continues to scale, it will play a key role in Flare’s broader ecosystem. Its ability to bridge assets across blockchains will drive interoperability, accessibility, and adoption. For users, Kinetic represents an opportunity to interact with decentralized finance securely and efficiently.
The roadmap for 2025 is ambitious, but Kinetic Markets has proven its ability to deliver. With new features, growing adoption, and the power of FAssets on the horizon, Kinetic is positioned for long-term success.
We’ve had a fantastic 2024 at Kinetic but we’re even more excited for the possibilities and opportunities that await us and our users in 2025. Kinetic phase two incoming!
Jake Hunsbusher, Communication Director
Kinetic Markets Leading the DeFi Revolution
Kinetic Markets has had a breakout year, achieving significant milestones with its mainnet launch, the introduction of JOULE, and its focus on transparency through Dune Analytics. The upcoming integration of FAssets marks the next phase of its growth, as the platform prepares to unlock liquidity for assets like Bitcoin and XRP.
For users, Kinetic offers a secure and accessible way to borrow, lend, and earn rewards. By bridging the gap between traditional assets and DeFi, the platform is creating new opportunities for participants across the crypto ecosystem.
As 2025 approaches, Kinetic Markets stands ready to lead the next wave of innovation in decentralized finance. Its growth is a testament to the power of user-focused design, community-driven governance, and a commitment to financial accessibility. For anyone looking to engage with DeFi, Kinetic Markets is shaping the future—one transaction at a time.
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