Flare Network's total value locked (TVL) has surged by more than 160% over the past two weeks, integrating Tether's USDT stablecoin on the Layer 1 blockchain.
Since April 28, TVL on Flare has risen from $45 million to $120 million, according to DeFi analytics firm Token Terminal. The change follows the launch of USDT0, an omnichain version of USDT on Flare.
The rapid growth is largely attributed to Flare's USDT Boost program, which offers users providing liquidity on decentralized exchanges with up to 30% APY in rFLR tokens.
Flare Network, an EVM-compatible Layer 1 blockchain designed to improve interoperability and data accessibility across multiple chains, has now integrated major stablecoins, a critical gap in the ecosystem.
Major stablecoin issuers, such as Tether and Circle, do not natively issue on the network. However, USDT0 has already seen strong adoption on the platform, with a supply of roughly $65 million and 6,300 users, including $35 million minted on April 29 alone, according to Flare's dashboard.
The integration is being leveraged to help incentivize liquidity in Flare's DeFi ecosystem, particularly for its XRP-backed asset (FXRP) and upcoming liquid-staked XRP tokens.
It is worth noting that USDT0, built on LayerZero's Omnichain Fungible Token (OFT) technology and backed 1:1 by Tether's USDT reserves, can be transferred across major blockchains — including Ethereum, Arbitrum, Optimism, Sei, and Flare — without traditional bridges or wrapped tokens. It uses LayerZero's OFT standard.
This is an omnichain version of Tether's stablecoin. While the asset is fully backed by USDT, the largest stablecoin by market capitalization, it is not directly managed by Tether. Rather, USDT0 is managed by Everdawn Labs.
