Flare Network's total value locked surges 160% since USDT0 rollout, surpassing $120 million

Flare Network's total value locked has spiked by more than 160% over the past two weeks, going from $45 million to $120 million since April 28 — a change that appears to be driven by the launch of USDT0, an omnichain version of USDT stablecoin on the blockchain.

The rapid growth is largely attributed to Flare's USDT0 Boost program, which offers up to 30% APY in rFLR tokens for users providing liquidity on decentralized exchanges like SparkDEX and Kinetic.

Flare Network is an EVM-compatible Layer 1 blockchain focused on improving interoperability and data accessibility across multiple chains. It has raised a total of $46.3 million through multiple funding rounds, including $11 million in 2021 and $35 million in a Series A round in 2024.

On Flare, USDT0 now fills a critical gap, as major stablecoin issuers like Tether and Circle do not natively issue on the network. The stablecoin has already gained traction 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.

USDT0's 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.

USDT0, built on LayerZero's Omnichain Fungible Token (OFT) technology and backed 1:1 by Tether's USDT reserves, allows for transfers across major blockchains — including Ethereum, Arbitrum, Optimism, Sei, and Flare — without traditional bridges or wrapped tokens. It uses LayerZero's OFT standard.

Notably, 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. USDT0 is managed by Everdawn Labs.