This document outlines various opportunities to grow the DeFi ecosystem on Flow by leveraging its new Ethereum Virtual Machine (EVM) support, alongside the unique features of the Cadence programming language. The overarching goal is to increase total value locked (TVL) on Flow by bringing over established DeFi building blocks, innovating with new primitives, and enabling complex strategies through atomic orchestration.
1. Porting Established DeFi Primitives
1.1 Automated Market Makers (AMMs)
Uniswap v2, v3, v4v2: Classic constant-product market maker.
v3: Concentrated liquidity, enabling LPs to choose a price range for more capital efficiency.
v4: Potential for custom “hooks” to extend liquidity and fee mechanisms.
Curve Stable Pools