Flow Launches Flow Credit Market: A Canonical Automated Lending Protocol For Consumer DeFi

In Brief

Flow is launching Flow Credit Market, designed to support mainstream DeFi adoption, increase transaction volume, and enable a deflationary token model while maintaining low fees and network scalability.

Consumer Layer 1 network Flow announced plans to advance its development roadmap by creating a series of foundational protocols, beginning with a credit market

Future protocols may expand to include perpetual contracts, prediction markets, and other financial instruments. These protocols are intended to function as open financial primitives, supporting a new generation of Consumer decentralized finance (DeFi) applications aimed at mainstream adoption.

Each foundational protocol will be launched alongside one or more flywheel applications, developed either by Dapper Labs or other strategic ecosystem partners.

The first of these protocols, Flow Credit Market (FCM), is the canonical automated lending protocol for the Flow network

FCM is designed to represent an improvement for decentralized finance by leveraging Flow’s native on-chain scheduling capabilities to execute recurring triggers without reliance on external oracles. This approach maximizes loan-to-value ratios while minimizing liquidation risk, naturally increasing yields for both lenders and borrowers. Internal simulations indicate that FCM would have protected user deposits from liquidation in all market downturns over the past five years.

In order to support FCM, Dapper Labs is introducing Peak Money, a flywheel application for consumer finance. Peak Money aims to serve as an entry point for the next 100 million users into crypto, aggregating yield opportunities across multiple blockchains and presenting them through a seamless, mobile-first interface. The waitlist for Peak Money is now open at peak.money.

The ecosystem model establishes a clear structure: the Flow Foundation builds the enduring utility, Dapper Labs or other strategic partners launch flywheel applications concurrently, and the community inherits a strong, liquid foundation supported by a sustainable revenue model.

Flow Updates Transaction Fees As Network Enters Second Phase, Shifting To Deflationary Token Model

The initial transaction fee structure on Flow was designed to promote consumer adoption by keeping costs low, reducing onboarding friction, and enabling rapid network growth. This approach successfully supported a diverse range of applications and contributed to the network’s overall maturity.

As Flow enters its second phase as a more established network, the introduction of automated strategies through the FCM is expected to drive a significant increase in transaction volume, in part due to the on-chain scheduler. In response, a network-wide update to transaction fees is being implemented, signaling a strategic shift from subsidized growth toward a deflationary token model and sustainable value accrual.

The updated fee structure establishes a direct connection between network usage and token value, with the model designed to make the FLOW token net deflationary at a sustained throughput of 250 transactions per second, a level anticipated as FCM and applications like Peak Money conduct frequent on-chain rebalancing for users.

Despite the expected rise in transaction activity, Flow’s efficient architecture ensures that fees remain substantially lower than those on other networks such as Solana and Base, without sacrificing decentralization. The network continues to be one of the few blockchains capable of scaling to millions of daily active users while avoiding volatile and unsustainable gas spikes for developers and users.