XDC Network Completes First DeFi Surge Program with TVL Doubling to $24 Million

TLDR:

• XDC Network deployed $1.25 million in WXDC rewards through Merkl distribution during the eight-week campaign period.
• Total value locked doubled from approximately $12 million to $24 million despite challenging broader market conditions.
• Stablecoin pools scrvUSD/USDC and ynRWAx/USDC on Curve Finance attracted capital focused on real-world assets.
• Epoch 002 in 2026 will enable XDC as collateral for borrowing stablecoins through new money market protocols.

XDC Network wrapped up its inaugural DeFi Surge Program on December 25, 2025, marking a successful debut for the ecosystem-wide liquidity initiative. 

The eight-week campaign distributed $1.25 million in WXDC rewards while total value locked across the network climbed from $12 million to $24 million.

Stablecoin Pools Drive Capital Efficiency

The program ran from October 30 through December 25, 2025, representing the first coordinated DeFi incentive effort led by the XDC DeFi team. Merkl handled the distribution of rewards to early liquidity providers throughout the active period. 

Market conditions remained challenging during the campaign window, yet the results showed durability beyond short-term capital chasing.

Growth concentrated in low-volatility pools aligned with stablecoins and real-world assets. Curve Finance saw notable inflows into the scrvUSD/USDC and ynRWAx/USDC pools, demonstrating appetite for composable yield strategies. 

These pools attracted participants seeking exposure to real-world-asset-backed instruments rather than speculative positions.

XDC/USDC liquidity expanded across multiple trading venues during Epoch 001. XSwap, Oku.trade, and Curve Finance all registered increased market depth for the native token. 

This distribution improved price discovery mechanisms and strengthened trading infrastructure across the ecosystem.

Credit Collateral Focus Shapes 2026 Roadmap

The XDC Network announcement highlighted the strategic validation achieved through Epoch 001. The campaign proved that aligned incentives could attract capital seeking stable yield and real economic activity. 

This outcome supports the network’s positioning around trade finance and institutional-grade asset deployment.

Epoch 002 will launch in 2026 with a refined mandate centered on credit functionality. The next phase aims to establish XDC as collateral for borrowing various stablecoins, including USDC. 

Multiple money markets are expected to deploy lending and borrowing services under defined risk frameworks.

The evolution positions XDC DeFi as infrastructure for on-chain credit markets. Risk assessment protocols and collateral quality standards will become central to platform design. 

The network is building toward becoming a foundational layer where real-world assets and trade finance transactions settle on-chain through credit rails backed by transparent risk management.