Lulo Attracts $15.3M in AUM, Spearheading ‘Hands Free DeFi’ Movement

Backed by Circle and Solana Ventures, Lulo Finance (formerly Flexlend) has gone from strength to strength in recent months. Solana’s first automatic lending aggregator, Lulo capitalizes on Solana’s thriving and competitive DeFi ecosystem to bring users the best possible yield on their assets.

AUM, Active Depositors ‘Up Only’ Since Launch

Despite a slow start in the weeks following mainnet launch, Lulo depositors have surged in recent months. Since recording 1,861 active accounts on March 1st, based on Dune Analytics data, the number of depositors has increased by 193%, with around 5464 users at press time.

Remarkably, the platform boasts a perfect retention rate, with the number of current and all-time users remaining identical based on Lulo’s internal data. This implies depositors feel confident leaving their funds stored in the platform despite the vast opportunities present in Solana’s burgeoning DeFi ecosystem.

Speaking exclusively with SolanaFloor, the Lulo team divulged that the platform currently handles over $15.3M in Directed Liquidity, a term coined by Lulo similar to AUM (Assets Under Management) that calculates the total USD value of all deposits.

What’s driving Lulo’s growth and why are depositors treating the platform as a ‘set-and-forget’ savings account?

Hands-Free DeFi - How Does it Work?

For the uninitiated, navigating the world of DeFi can be complicated and intimidating. Hacks and exploits are still commonplace in the crypto world, and optimizing yield opportunities manually is time-consuming and requires constant monitoring.

To resolve this problem, applications like Lulo Finance aim to give depositors the best possible yield on their assets. By frequently scanning yield opportunities across the Solana ecosystem and automatically reallocating depositor funds, Lulo Finance helps users generate the highest available APY on deposited funds.

As a bonus, some Lulo accounts have also qualified for airdrop eligibility in the past, providing depositors with additional rewards.

Integrated with cornerstone Solana DeFi projects like Kamino Finance and Drift Protocol, Lulo supports a variety of Solana-based assets, including SOL, USDC, USDT, JUP, and BONK. Primarily, the team is focused on stablecoins, but has hinted that they might expand their offerings to include LSTs (Liquid Staking Tokens) in the future.

Lulo Finance’s success has not gone unnoticed. The platform’s sustained growth has demonstrated increasing demand for simplified DeFi, with competitors like Carrot, FruityPool, and Adrastea Finance all joining the fray.

Staying Ahead in a Competitive Field

In an exclusive interview with SolanaFloor, the Lulo Finance team expressed excitement about Solana’s expanding DeFi ecosystem. 

When asked how Lulo Finance planned to maintain its market share in the face of a growing number of competitors, a spokesperson from the team remarked that “constant iteration based on user feedback” and the “continued simplification of UI/UX” would be key to holding the applications position.

The team also considers their visibility and reputation in the Solana ecosystem to be of critical importance, positing that the “team is public and out there with the community attending events both regionally and globally”.

In the wake of VanEck’s SOL ETF filing, the Solana blockchain and DeFi ecosystem are primed for continued growth. If an eventual approval is confirmed capital inflows onchain could well find their way into platforms like Lulo Finance, bringing simplified DeFi services to a wider user base.

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