The DeFi ecosystem on Flow expanded significantly in October 2024: with a 13% rise in Total Value Locked (TVL), Flow reached $21.67 million across various protocols by October 18. 

Why DeFi is Growing on Flow

The recent growth is driven by the favorable environment Flow provides for DeFi traders and an increase in ETH-based liquidity following the most recent network upgrade, further boosting activity across the ecosystem. 

Flow offers predictable transaction pricing, low latency, and a highly secure network — key factors that foster an optimal environment for DeFi protocols to thrive. With the most recent upgrade to the network, Crescendo, projects on Flow now have access to Ethereum’s liquidity and infrastructure, a growth factor that helps to solidify the position of Flow as an emerging hub for consumer DeFi.

Below are the leading DeFi protocols on Flow:

• Increment Finance — $23.9m is locked in across the decentralized exchanged, lending, and liquid staking pools, rising 2% in the last week.
• Ankr liquid — $4.06m is locked in the liquid staking pool, rising 3.21% in the last week.
• Trado.one — $2.32m is locked in across perpetual derivatives and the decentralized exchange, rising 23.78% in the last week.
• Kittypunch DEX  — $1.24m is locked in on the decentralized exchange rising 12.09% in the last week.

On More Markets, earning vaults hold just over $573,000 in $FLOW, with another $566,000 in $FLOW facilitating lending on the platform.

In addition, Celer's USDC bridging is live with approximately $10.4m in USDC TVL.

Flow also saw a brief pullback in USDC TVL, followed by a 90% V-shaped recovery in early October, driven by the introduction of EVM compatibility with Crescendo.

The steady growth of EVM-based activity on Flow coincided with expanding TVL in DeFi protocols, as indicated by the number of network transactions exceeding 100,000 by mid-October, and continuing to maintain an upward trajectory.

DeFi Gets a Boost from Flow Community Rewards

Flow Community Rewards gives users additional value for accessing Flow DeFi protocols. Partner programs, including those that showed significant growth in the DeFi spectrum, play a substantial role in driving the success of the Consumer Rewards drive with exclusive offers, prizes, and giveaways.

Flow Community Rewards saw over 30-million $FLOW locked during the Preseason and takes full advantage of the capabilities of Cadence to overcome the distribution moat — a challenge faced by legacy and crypto ecosystems alike.

Flow is Unlocking Consumer DeFi

With a significant rise in TVL and an expanding rewards-based consumer incentives program, Flow is seeing rapid DeFi growth. The latest upgrade to the network, Cadence, allows for the seamless integration of EVM-based code, meaning DeFi products and platforms will no longer have to compromise between great user experience and access to Ethereum's liquidity and infrastructure.

Get started building DeFi on Flow, and capture the growing momentum with scalable, consumer-friendly tools.