For over six years, Flexa has enabled instant and fully fraud-resistant digital currency payments and payouts secured by Flexa Capacity, our novel and decentralized approach to onchain collateralization. Today, we’re delighted to release the third generation of Flexa Capacity to collateral providers around the world—now powered by the new Anvil protocol and embedding an entirely new way to earn more rewards with Boosts.

But first, some background: When any business is looking to accept digital currency, whether in-person or online, they’re typically faced with an impossible choice: either wait an extended period of time for the onchain transaction to confirm, or tolerate an unacceptable degree of fraud and nonpayment risk (not to mention, the complexities of accounting for price-volatile assets and managing acceptance and custody). When we founded Flexa in 2018, we realized that the only truly practical way to enable instant digital currency payments across any network—in any context—was to backstop every payment with onchain collateral. Since launching Flexa Capacity in 2019, our unique approach to collateralization has ensured that not a single merchant has ever experienced a single penny of loss from fraud or volatility.

Since separating from Flexa two years ago, the talented members of the Acronym Foundation have continued to develop onchain collateral management capabilities beyond anything we thought possible. The new Anvil protocol is a testament to their hard work and discipline, and drastically improves the efficiency, flexibility, and transparency of managing collateral onchain and earning rewards in return for collateral being used. We’re excited to share that the next-generation Flexa Capacity v3 is natively leveraging Anvil’s time-based collateral pools (in conjunction with Alchemy subgraphs) to make all of Flexa’s onchain collateral usage more traceable, more extensible, and more rewarding than ever.

“Flexa makes payments faster, safer and cheaper for merchants—and completely eliminates financial loss from fraud—by collateralizing every payment transaction with the only neutral collateral token that exists: Amp,” said Daniel McCabe, cofounder and CEO of Flexa. “Thanks to the brilliant work by the Acronym team, Flexa Capacity v3 pushes these benefits to completely new levels and further positions Amp to reframe the payments landscape for decades to come.”

"Anvil is an onchain collateral protocol that is modernizing the financial world, and Flexa-powered payments offer a perfect case study in how and why digital assets make for the perfect collateral,” said M, Head of the Anvil Project. “We look forward to Anvil helping to power Flexa collateralization for years to come, and can’t wait to see what new and never-before-seen payments experiences this integration will unlock.”

“We’re very pleased that Flexa remains so deeply committed to the Amp ecosystem, and has now chosen to integrate the Anvil protocol—which offers the absolute best experience to collateral providers when supplying and using collateral onchain for any purpose,” said Tyler Spalding, President of the Acronym Foundation. “Flexa is already a key player in helping to bring cryptocurrency payments mainstream, and we’re happy to help play such a significant role in their journey.”

Flexa Capacity v3 introduces these major changes and enhancements:

• Collateral is now stored in the Anvil Vault contract, which has been fully audited by independent security researchers and offers direct interfaces with other Anvil collateralization tools, such as Anvil Rewards and LOCs.

• Unlocks now happen at regular, expected intervals—versus the unpredictable windows offered by Flexa Capacity v2. Although unlocking collateral now takes longer (between 12 and 24 hours following an unlock request), the exact unlock time can now be known precisely at the time of unlocking.

• Rewards are now time-weighted and instantly withdrawable, which minimizes the disruptive impact of large collateral additions skewing reward distributions and disincentivizing collateral providers from continuing to support their desired pools. When rewards are distributed at the end of each month, they are weighted according to FIFO distribution of the tokens first pooled to Flexa Capacity on the whole.

• In tandem with key ecosystem collaborators, Flexa is now offering Boosts, which are an additional bonus multiplier on the collateral provided to specific pools each month—starting with an extra 50% bonus on all collateral provided to the Zashi and Zcash pools throughout the month of March (collateral must be deposited in one of these pools no later than March 5).

Flexa Capacity has now been fully redesigned to better expose the enhanced data and features offered by Anvil and Alchemy Subgraphs, with a more detailed set of pool metadata and historical activity than we were able to surface from v2.

Best of all, Flexa Capacity is still powered by Amp, the only neutral and independent fixed-supply collateral token that can enable instant digital currency transfers agnostic of the denomination of blockchain asset or fiat involved.

Flexa’s migration to Flexa Capacity v3 will take place in stages:

• On March 1, 2025, Flexa will begin using the collateral stored in Flexa Capacity v3 in combination with the collateral stored in v2. As of this date, any collateral that is pooled in Flexa Capacity v3 will be eligible to receive rewards and Boosts out of the first v3 reward distribution on April 1, 2025.

• On June 30, 2025, Flexa will stop making use of any collateral in Flexa Capacity v2. This is also the deadline to migrate to Flexa Capacity v3 in order to preserve your tenure from v2. To reiterate—if you migrate to v3 prior to June 30, Flexa will use the date you first pooled Capacity in v2 as the starting point for your wallet’s FIFO calculation when considering time-weighted rewards in v3.

• Finally, in July 2025, Flexa will fully migrate to using only collateral from Flexa Capacity v3, and will publish the final withdrawal root for Flexa Capacity v2, enabling instant withdrawals of any Amp still stored in the soon-to-be-deprecated FlexaCollateralManager contract.

All of us at Flexa are thrilled to finally release this major update to Flexa Capacity and to bring Flexa-powered payments fully across to the next generation of our collateralization system—now powered by Anvil and Alchemy. Whether you’re an existing collateral provider already using Flexa Capacity v2, or ready to start exploring collateralization for the first time, we can’t wait to hear what you think of v3. To get started as a collateral provider, learn more about everything that’s new or start exploring collateral pools today.