Reward FLR, or rFLR, is a core part of Flare’s growing DeFi ecosystem that rewards and incentivizes participation.

Specifically, the incentive program was developed to build deep liquidity for multiple digital assets on DeFi dapps that operate on Flare. For tracking the different yield strategies available to Flare users, the FlareMetrics dashboard is a key tool to making sure you have the most up-to-date information on what you can do to earn rewards and how much you can accrue.

How does rFLR work?

rFLR is distributed monthly by the Flare Emissions Committee in order to increase liquidity in Flare’s DeFi ecosystem and incentivize participation on Flare. rFLR emissions are allocated monthly by the Flare Emissions Committee to participating dapps who then distribute the rewards to users who are participating in their incentivized on-chain activities. Eligible users will accrue rFLR rewards monthly, which can be claimed directly through the Flare Portal. rFLR rewards will vest over a 12-month period.

But which dapps can be used to explore and earn rFLR rewards?

Earning rFLR rewards

Because emissions are used as incentives to boost DeFi activity on Flare, the selection criteria for eligible dapps prioritizes DeFi protocols. To track which liquidity pools and lending protocols are incentivized via the rFLR Emissions program, please refer to the FlareMetrics page. The dashboard also provides APY estimates for the eligible protocols, as well as TVL, volume, and number of transactions.

Here are some popular DeFi protocols on Flare that are incentivized with rFLR:

• BlazeSwap: An efficient, Uniswap V2-style DEX that offers a broad range of liquidity pools.
• Kinetic: A borrowing and lending platform that allows users to leverage their supplied assets (including FAssets) into different financial strategies
• SparkDEX: A Uniswap V3-style DEX with concentrated liquidity pools that include stablecoins, wFLR, and sFLR.
• Sceptre: A liquid staking platform that allows users to stake wFLR (wrapped FLR) in exchange for sFLR, a liquid-staked version of FLR.

These are just a handful of the live DeFi apps that are eligible for rFLR emissions. More protocols will be added to the list of eligible apps over time. The monthly emissions will scale too as more dapps are added to the program. Stay tuned for Enosys, XDFi, and RainDEX to distribute their rFLR allocations in coming months.

Note that rFLR can be earned simultaneously with monthly FlareDrops. rFLR vests linearly over 12 months, with 1/12 claimable and withdrawable as WFLR monthly from the Portal. Early withdrawal of unvested rewards incurs a 50% penalty. For maximum returns, wait for full vesting.

How is rFLR distributed?

rFLR-eligible protocols are notified of upcoming allocations before the start of each month and can set their own criteria for user rFLR reward distributions. The Emissions Committee favors strategies that incentivize participation. The rewards are then distributed via a script run by the dapps.

What about any unclaimed or undistributed rFLR?

• Unclaimed rFLR by users: Any unclaimed monthly rFLR distributions may stay open for a certain amount of time, or these funds could be reallocated to future programs or even burned (e.g. 1 year after the program concludes).
• Undistributed rFLR by projects: Protocols have 30 days to distribute rFLR rewards. If the protocol does not distribute to its users within this window of time, the Committee reserves the right to reclaim rFLR for future reallocation or burn.

How does rFLR fit into the larger Flare ecosystem?

rFLR’s significance goes beyond rewarding participants – it’s integral to Flare’s larger strategy for attracting deeper liquidity and increasing overall DeFi activity. This directly supports the FAsset launch through incentivizing the integration of non-smart contract tokens like BTC and XRP. It also means more cross-chain liquidity and seamless interoperability between Flare and other chains.

In promoting the usage of DeFi strategies such as lending or borrowing on Flare, the rFLR emissions set a strong foundation for the launch of FAssets on mainnet.

Remember to refer to the FlareMetrics dashboard to maximize your rFLR rewards. For examples of yield strategies and more information on emissions, please refer to our emissions article.