XDC Focuses on Liquidity to Propel DeFi into the Mainstream

The XDC Network has introduced XDC Surge, a $10 million program designed to boost liquidity within decentralized finance (DeFi) ecosystems, signaling a significant transition from building infrastructure to driving widespread adoption, according to a

. This initiative is directed at liquidity providers on major decentralized exchanges (DEXes), granting incentives in XDC or Liquid Staked XDC (LST-XDC) tokens to encourage involvement. By channeling resources to platforms such as Curve Finance, XSwap Protocol, and Oku, the network aims to strengthen stablecoin pools, enhance native automated market (AMM) liquidity, and stimulate DeFi engagement through advanced user interfaces, as detailed in a .

The initial stage of the initiative, called Epoch 001, will run for two months and centers on three platforms: Curve Finance for stablecoin exchanges, XSwap Protocol for AMM liquidity, and Oku for activities similar to Uniswap, as outlined in the Bitzo report. Incentives are distributed openly via the XDC Engagement Hub, utilizing Merkl.xyz APIs to provide real-time, verifiable tracking of rewards. This method supports XDC’s broader objective of building a “more dynamic and institution-ready DeFi environment,” according to Beny Mk, XDC Network’s Head of Growth, in the CryptoDaily article.

This program highlights XDC’s dedication to cultivating a robust blockchain ecosystem. By focusing on deepening liquidity, the network seeks to overcome a major challenge in DeFi—unstable capital movement—while establishing itself as a central platform for traders, developers, and institutional participants. Future stages are expected to branch into lending and derivatives, further broadening the incentive offerings, as mentioned in the Bitzo report. Participants can track their allocations and confirm on-chain data through the XDC Hub, which strengthens confidence in the system’s openness, as reported by CryptoDaily.

Experts see the Surge program as a calculated effort to reinforce XDC’s standing in the increasingly competitive DeFi market. The $10 million allocation demonstrates a strong financial commitment and belief in the network’s capacity to draw and keep liquidity providers. With global DeFi total value locked (TVL) experiencing volatility due to regulatory pressures, XDC’s focused incentives may drive adoption by minimizing slippage and enhancing trading efficiency for users, according to the Bitzo report.

The initiative also emphasizes the network’s shift toward prioritizing user growth. While earlier blockchain efforts concentrated on core infrastructure, XDC’s Surge program reflects the ecosystem’s evolution, focusing on liquidity and user experience to accelerate mainstream uptake, as argued in the CryptoDaily article. As DeFi progresses, such targeted incentive models could serve as an example for other blockchain networks aiming to balance innovation with real-world utility.