Stellar's DeFi Ecosystem Grows With $50 Million In Swap Volumes

The Stellar network, known for its emphasis on speedy and low-cost payments, is increasingly making its mark in the decentralized finance (DeFi) ecosystem. Through a variety of innovative applications, the Stellar blockchain is experiencing a surge in on-chain activity, indicating a growing adoption by developers and users across diverse use cases. This trend suggests the emergence of a robust DeFi ecosystem within Stellar.

While Ethereum and other major blockchain networks often dominate the headlines, Stellar’s DeFi protocols are quietly gaining traction. Although they may not receive as much publicity, the statistics reveal that these protocols are achieving respectable volumes, with January’s activity seamlessly transitioning into February.

Stellar’s two most active liquidity-focused platforms, Aquarius and Soroswap, are playing a crucial role in building a solid DeFi infrastructure on the blockchain. Aquarius, which aims to enhance decentralized exchange (DEX) liquidity on Stellar, has reached a significant milestone with total swap volumes exceeding $50 million. The sustained weekly activity raises questions about the depth and sustainability of this liquidity, but Aquarius is undeniably a key automated market maker (AMM) in the Oasis ecosystem.

Soroswap, on the other hand, functions as a comprehensive liquidity engine, recording over $21 million in total swap volume. The protocol’s growth is evident in the broadening distribution of liquidity across various token pairs, indicating a quiet but steady expansion.

Together, Aquarius and Soroswap are laying the groundwork for more complex DeFi use cases on Stellar, pointing to a maturing DEX economy that continues to evolve.

Decentralized finance is not just about liquidity; it also involves user engagement and interaction. Two platforms that exemplify this are Blend and Phoenix. Blend brings an experimental energy to Stellar’s DeFi universe, focusing on on-chain indicators such as wallet activity and NFTs. The platform’s addressable surge is helping DeFi users address major deficiencies in the current address system, while top wallet net flows provide insights into liquidity supply and user commitment.

Phoenix, known for its rapid-fire swaps and dynamic pool combos, has achieved nearly $900K in 30-day volume. Its weekly swap activity, led by pairs like USDC-PHO and XLM-USDC, signals a competitive landscape and shifting user preferences. Both platforms highlight the interactive and engaging nature of DeFi on Stellar, with users finding new ways to earn, swap, and engage.

One of the most intriguing developments in Stellar’s DeFi ecosystem is FXDao, a stable debt protocol that offers a unique structure. FXDao creates a market for overcollateralized loans, with total debt issued exceeding $4.3 million. Users can deposit digital assets to mint stable debt tokens, including USDx, EURx, and GBPx, providing multi-currency exposure in a decentralized format. The collateral mix indicates an attempt to serve diverse user needs, with backing from both stable and volatile assets. Although the number of active vaults is growing slowly, it suggests potential for significant expansion if broader ecosystem conditions improve.

FXDao’s stability and balance reflect an experimental yet grounded approach to DeFi, focusing on practices that ensure sustainability and avoid crashes.

Overall, these data points indicate that Stellar’s DeFi ecosystem is transitioning from a conceptual phase to a concrete reality. Comprised of liquidity protocols, user-focused platforms, and a nascent debt market, Stellar is building the infrastructure for a self-sustaining DeFi economy. While the overall numbers may not match those of larger networks, Stellar’s real-life adoption and quiet DeFi breakout are evident, positioning it for broader DeFi adoption in the future.