Why does flare limit FAsset swearing during the Songbird test phase

• Hugo Philion explains FAsset test limits due to collateral risks capped at $300k for code related benefits.
• FAsset scaling is limited to ensure security and efficiency before moving to the main Flare network.

The recent updates regarding the FAsset Flare test on Songbird have received a lot of attention, especially with its design and parameters. Flare co-founder Hugo Philion responded to X to help understand the current status of the testing phase.

With a threshold of $2 million per asset and limitations related to the available agent and the pool collateral, he emphasized that the FAsset test is intentionally limited.

The FAsset test on Songbird was designed to be limited in nature. The amount of FAsset that can be issued is limited by both the $2M per asset cap and the amount of agent and pool collateral.

As we have seen the system is fully hit most of the time. So why aren't agents…

— Hugo Philion ☀️ (@HugoPhilion) December 21, 2024

Flare Labs restricts alignment to ensure security during the testing phase

Philion he answered a basic concern from the community: why aren't producers putting together more collateral to encourage minting near the cap? The key is the small risk coverage provided during the test phase. Flare Labs covers the potential risk due to code problems, as Philion clarified, only up to $300,000.

Although agents are theoretically allowed to offer additional collateral, they are still cautious because any problems above the $300,000 limit would not be covered.

This restriction will remain in place until the testing ends and FAssets fully transitions to the main Flare network. For this level, Philion pointed out that expanding the scale of the testing system does not provide an additional benefit.

This careful technique emphasizes it Flare's commitment to ensure security and stability before the work is extended. It also emphasizes the calculated actions Flare is taking to foster trust within its campus. As reported with Crypto News Flash (CNF), Flare recently teamed up with ChainPatrol to improve Web3 security.

This partnership seeks to address common threats, including phishing, social engineering, and impersonation, thereby protecting Flare users on Discord, Slack, and Telegram bots. The real-time threat monitoring offered by ChainPatrol adds a critical layer of protection, thus supporting Flare's commitment to user safety.

Meanwhile, Flare's native token, FLR, has suffered from recent market movements. FLR is rotated by hands around it $0.02598 at the time of writing; it has fallen 13.04% over the past 7 days and 3.25% over the last 24 hours.