Flare Network has launched USD₮0, a new omnichain deployment of the widely adopted USDT stablecoin to increase liquidity across many blockchain ecosystems. Built on top of the Omnichain Fungible Token (OFT) technology with LayerZero, it enables the costless transfer of funds across chains using standard Fungible Tokens. In addition to that, no awkward wrapping or 3rd party bridges are required.
This launch strengthens the foundation for decentralized finance (DeFi) across Flare and potentially unlocks DeFi opportunities for $XRP holders. USD₮0 offers native interoperability across the major blockchains such as Ethereum, Arbitrum, Optimism, Sei & Flare.
The USD₮0 token has been built with a foundation upon Tether’s infrastructure and allows users who currently hold bridged USDT through Flare’s official portal to migrate their existing holdings. The cross-chain liquidity solution is already seeing significant traction with its launch and looking forward to over $1 billion of TVL happening.
Strategic Role in Flare’s DeFi Expansion
However, the introduction of USD₮0 positions it as a key liquidity provider for Flare’s growing XRP DeFi ecosystem. USD₮0 thus allows stablecoins to move frictionlessly across chains and allows applications to be built with an $XRP native lens, ranging from liquid staked $XRP tokens to FXRP.
Within the Flare network, zero gas fees with USD₮0 improve the utility of bringing very low-cost remittances and daily transaction options. Moreover, the USD₮0 Boost program yields up to 30% APY in rFLR tokens, generating further liquidity pools that will also be instrumental for maintaining the activity of DeFi. The wider adoption of the stablecoin will also be expected to usher in further XRP-aligned DeFi initiatives as the stablecoin goes live across Flare and other chains.
USD₮0 Enhance Interoperability and Liquidity Standards
USD₮0 deployments help solve problems in decentralized finance, fragmented liquidity. Transfers are almost always completed in seconds to minutes, making USD₮0 a faster and more secure method of cross-chain movement than traditional bridging protocols.
Using LayerZero’s OFT standard, USD₮0 prevents stablecoin liquidity from being separated within isolated blockchains for capital efficiency among ecosystems. As a foundational interoperability, this marks a new standard for how a stablecoin can incorporate into a multi-chain ecosystem, in line with Flare’s vision for a rich, accessible blockchain infrastructure.
