Flare DeFi Hub: A closer look at the 400% growth

Flare is powering onchain financial solutions for multi-billion-dollar non-smart contract assets. 

Our unique enshrined data protocols provide developers with secure, decentralized access to data at scale – enabling a new generation of interoperable onchain financial products set to drive user adoption. Flare’s infrastructure supports:

• Liquidation-free leverage (Cyclo)
• Treasury Bill Yield (Clearpool)
• Perpetual Futures (SparkDEX Eternal)
• Lending & Borrowing (Kinetic)
• Automated trading strategies (RainDEX)
• DEX liquidity management (SparkDEX & Enosys)
• Compliant futures (XDFI)
• Liquid Staking (Sceptre)

In this article, we’re going to break down the Flare DeFi Ecosystem dashboard created by Into the Block to analyze Flare DeFi trends and spotlight key protocols shaping the landscape.

Flare DeFi Growth

Below is the breakdown of TVL by category for February, 2025:

What are the key takeaways from the ITB dashboard?

1. Flare is growing rapidly

• TVL reached over $80 million – a 410% increase from February 2024’s TVL of $15.92 million. 
• 1.4 million Flare wallet addresses.
• 490,000 daily transactions on average.

2. RWAs and Liquid Staking lead TVL

• Real-world assets (RWAs) + liquid staking now account for over 56% of Flare’s TVL.
• Sceptre’s Liquid Staking dominates with a 26.15% share highlights a strong demand for yield-bearing assets and flexible staking options.
• Clearpool T-POOL dominates the chart with 31.66% of Flare’s TVL. Clearpool offers on-chain treasury yields, while USDX relies on Flare’s FTSO for accurate pricing of RWAs. The Clearpool integration further strengthens the connection between traditional finance and blockchain.

3. DEX TVL points to a healthy trading environment

• DEX liquidity makes up nearly a quarter of the TVL at $19.02 million – a 152% increase since last year.
• SparkDEX’s spot as the third highest TVL protocol means deeper liquidity, which not only benefits SparkDEX, but all DeFi protocols within the ecosystem.

Liquidity flowing to Flare

Stargate has played a significant role in bridging assets to Flare, with 2,185 WETH, 3.3M USDT, and 5.6M USDC.e having been bridged.

Flare’s growth trajectory signals strong ecosystem interest and adoption. The massive growth in TVL also aligns with the rollout of targeted DeFi incentives over the past year:

• rFLR Emissions: 510M FLR to incentivize DeFi participants.
• FlareDrops: 670M FLR distributed monthly to wrapped FLR holders or FLR stakers.
• Highlighted Yield: Some notable yields available around ETH and stablecoins, such as 25.35% APR on USDC through lending on Kinetic. 
• Comprehensive DeFi primitives: Flare offers a comprehensive suite of DeFi products, including DEXes, DEX aggregators, lending and borrowing, futures and perpetual contracts, leveraged trading, and liquid staking. The platform also has plans to further expand its product offerings, enabling a wide range of activities for FLR token holders.

With upcoming developments like the FAssets launch on mainnet, Flare is poised for further expansion. 

What to Expect From Flare DeFi in 2025

In 2025, expect Flare DeFi to expand with more dApps and partners leveraging its enshrined oracles. A key development is the integration of Trusted Execution Environments (TEEs), which will empower developers and businesses to build scalable blockchain applications.

Verifiable AI, in particular DeFAI (DeFi x AI), is a key focus for Flare this year, presenting an opportunity to leverage Flare’s enshrined oracles and TEEs to offer automated DeFi strategies. This initiative kicks off with the Verifiable AI Hackathon in collaboration with Google Cloud and Blockchain at Berkeley.

Additionally, Derivatives and Yield are poised for significant growth. Though currently representing a smaller share of the Flare TVL, the introduction of perpetual contracts in December 2024 via SparkDEX Eternal has opened the door for more advanced trading strategies and deeper liquidity. As more yield-focused DeFi products emerge, Flare is well-positioned to attract new capital flows.

The Flare Time Series Oracle (FTSO) continues to evolve, expanding the range of data feeds that it supports. Additionally, the Flare Data Connector (FDC) is set to launch on Flare mainnet, enabling the attestation types needed for FAssets launch – which will further empower builders to create innovative tools.

Get involved today!

There are currently many ways to get started with DeFi on Flare:

• Flare Fair: Participate in our newest campaign, a gamified and fun way of exploring Flare’s DeFi landscape for earning opportunities.
• rFLR Emissions: Get rewarded for participating in Flare DeFi. Refer to our rFLR Guide to learn more.
• Layer3: The Flare Fair Layer3 campaign gives users another way to explore Flare DeFi by rewarding users who finish specific Flare Fair-related tasks.