Flare Network Rockets 300% as Tether’s USDT0 Stablecoin Goes Live—Traders Yawn at ’Yet Another Peg’

Flare’s blockchain just got a turbocharge with Tether’s new USDT0 stablecoin integration—because what the crypto space really needed was another dollar-pegged token. Daily transactions surged past 1.2 million as arbitrage bots piled in, though skeptics note 87% of the volume comes from three CEXs (classic).

The Layer 1 chain—long hyped for its oracle-free data feeds—is suddenly the hottest parking spot for stablecoin liquidity miners. Never mind that USDT0 is functionally identical to every other Tether variant; when free yield’s on the table, crypto degens bring their own forks.

Flare’s native token (FLR) pumped 45% on the news before settling at +18%—a textbook ’buy the rumor, sell the news’ play. Meanwhile, TradFi bankers are still trying to explain to clients why a ’blockchain stablecoin’ isn’t an oxymoron.

USDT0’s Impact on Flare Network’s TVL Growth

Flare Network has reached a crucial milestone as its TVL surged to $120 million in just two weeks. This rapid growth reflects the strategic launch of USDT0 on April 28, which accelerated liquidity flows. As users flocked to the protocol, the increased TVL underscored the DeFi ecosystem’s strength. The introduction of USDT0 has clearly played a pivotal role in this expansion, showcasing the protocol’s potential.

The USDT0 Boost program offers attractive terms for liquidity providers on decentralized exchanges such as SparkDEX and Kinetic. Promising an annual return of up to 30% in rFLR coins has fueled liquidity pool participation. According to platform data, USDT0’s supply has reached approximately $65 million, engaging over 6,300 users and achieving a $35 million issuance in just one day.

Flare Network’s Infrastructure and Strategic Investments

Flare Network, an EVM-compatible Layer 1 blockchain, aims to facilitate data sharing between diverse blockchains. The network secured a total investment of $46.3 million across two major funding rounds in 2021 and 2024. These investments are meant to bolster the project’s scalability and security targets, with a keen focus on blockchain interoperability as a foundational objective.

Developed using LayerZero’s Omnichain Fungible Token (OFT) standard, USDT0 enables seamless transfer between major blockchain networks such as Ethereum$1,938, Arbitrum, Optimism, Sei, and Flare Network, eliminating the need for traditional bridging or wrapped mechanisms. Its reserves are backed 1:1 with Tether‘s USDT balances, although Everdawn Labs manages it, advancing cross-chain liquidity integration.

The integration of USDT0 is pivotal for Flare Network in providing liquidity incentives for XRP-backed FXRP and the soon-to-be-launched liquid staked XRP coins. By diversifying the DeFi ecosystem, the protocol opens new avenues for investors, targeting volume increases in both deposits and staking.