Flare Network Surpasses 1M Wallets as TVL Soars

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Blockchain for data Flare has posted some impressive milestones that attest to significant ecosystem growth. One million wallets have now been created as new users onboard and begin exploring the growing number of dapps that have launched on Flare, bringing valuable liquidity with them bridged from other chains.

Total Value Locked (TVL) on Flare has now surpassed $13M, driven by leading protocols including Clearpool, Sceptre Liquid, and Enosys. Sceptre is the leading liquid staking protocol on Flare, recording more than $10M in staked assets, while other popular protocols include SpakDEX, Blazeswap, and Kinetic. Two years on from its mainnet launch, Flare is showing signs of sustainable growth fueled by an ecosystem of dapps that support a wide range of DeFi use cases.

Flare Finds Its Feet

In a crowded multi-chain landscape, Flare has carved out a niche through a focus on providing developers with best-in-class data sourced from the most popular L2 and L2 chains. Its mission to connect everything has seen the deployment of tools on Google Cloud Marketplace that allow developers to access blockchain data on demand without the need to spin up self-hosted nodes.

At the same time, it’s developed consumer use cases that extend the utility for the FLR token which plays a pivotal role in securing Flare’s decentralized price oracles and data connector that allows data to be used trustlessly on Flare. Meanwhile, the integration of leading liquidity protocol LayerZero has made it easier for users to move assets onto Flare and utilize them for staking, trading, and yield farming. 

New DeFi Emissions Program Boosts Yields

At the start of August, Flare launched a DeFi emissions program promising some of the most attractive sustainable yield available within the industry. It provides an incentive for users to bridge funds to Flare via Stargate and to earn rFLR rewards. Designed to grow network liquidity for FLR, ETH, and stablecoins, the initiative has seen 510M FLR tokens from the incentive pool made available for rewards.

Rewards are distributed to Flare users based on the liquidity they provide to whitelisted protocols. Earned rFLR vests over 12 months, providing a steady stream of rewards. One of the primary goals of the program is to increase stablecoin liquidity given its importance in bootstrapping other DeFi activities. It’s particularly important on Flare since FAssets such as BTC, XRP, and DOGE can be bridged and paired against stablecoins for trading. More stablecoin liquidity equates to more efficient swapping of bridged assets.

SparkDEX, BlazeSwap, and Kinetic have all participated in the DeFi emissions program, with the former rewarding users for providing liquidity for stablecoins such as USDC.e, USDC, and USDX. Flare has also revealed that it will be adding Enosys and Raindex to this list, further expanding its DeFi rewards program.

Signs of Sustainable Ecosystem Growth

It’s easy for blockchain networks to artificially stimulate ecosystem growth through juicing rewards and providing outsized rewards for liquidity mercenaries. It’s a lot harder to drive sustainable growth by hitting the fabled Goldilocks Zone where rewards are sufficient to grow TVL and increase users over a long time horizon without diluting the native token.

Flare believes its DeFi emissions program is structured in such a way as to ensure steady growth that will provide a foundation for future developments. Flare Labs CEO Hugo Philion has spoken proudly of reaching the 1M wallets milestone and becoming a top five omnichain bridge and believes that FAssets will be instrumental in driving the next phase of Flare’s growth. The slow and steady approach Flare has taken to expanding its ecosystem appears to be paying dividends. It’s now found its place in the multi-chain landscape and is primely positioned to keep on grinding higher from here.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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