Introducing Fluid: Revolutionizing DeFi

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Imagine merging Uniswap, Maker, Compound, Aave, and Curve. The result? Fluid - a revolutionary liquidity layer for lending, borrowing, and trading that combines the best DeFi has to offer. Here's how it works: 🧵

@0xfluid is the result of 1.5 years of hard work by the Instadapp team. Yet, their journey started in 2018, even before the term 'DeFi' was coined. Since then, they've built a 'middleware' protocol that attracted $1.8B in TVL, becoming the 10th largest protocol in DeFi.

But serving solely as a "middleware" solution for major DeFi protocols limits the potential for significant innovations. That's why Instadapp has been building innovative products such as Avocado blockchain aggregator & smart wallet for individuals and institutions alike. twitter.com/DefiIgnas/status/1633626328330289152

I'm proud to be an ambassador for Instadapp, a protocol that has made a significant impact in the DeFi space through continuous innovation. And now, with the introduction of Fluid, they are here to change lending, borrowing, and trading. twitter.com/DefiIgnas/status/1643984689412341763

At the core of Fluid is the Liquidity Layer, where liquidity is consolidated across protocols. It solves the problem when newer protocol versions launch, but even with superior features they face liquidity hurdles. E.g. Aave v2 still has $2.2B in TVL vs $2.4B on the V3.

Multiple protocols can be built on top of the Liquidity Layer. With the Lending protocol, you can lend at a lower gas cost than a Uniswap swap. Plus, Fluid's Lending protocol offers a long-term yield, absorbing new borrowing-side innovations without asset migration.

Vault Protocol is targeted at borrowers. The experience is similar of MakerDAO vaults. But, Fluid’s Vault Protocol allows you to earn interest on your collateral. Think of it as a blend between AAVE markets & MakerDAO vaults.

With Fluid's Vault, you can borrow up to 95% of ETH value. Liquidation optimization is key. It's 100x more efficient than on other protocols allowing for liquidation penalty as low as 0.1% and at a gas fee of a Uniswap swap.

Liquidations in the Vault protocol work like a swap but with better rates. For DEX aggregators, integrating is as simple as any other AMM, providing traders with improved prices. No matter the swap size, any trader can liquidate any amount of debt.

The DEX protocol introduces smart debt and smart collateral. The purpose of both is to earn on your collateral or reduce your debt from generated trading fees. I repeat; traders can now trade on top of your debt, and instead of a fee hiking up your debt, it gets reduced.

For example, you use ETH collateral & USDC/USDT smart debt. As you borrow, you gain a share of the overall pool. While borrow rates hover around 3-5%, trading APR can vary daily. It's possible that rates are so low that you might effectively get paid to borrow.

Now, as Fluid crowns the 5-year building in the space for Instadapp, $INST also gets more utility. It will be a governance token for adjusting rate curves, fees, setting up Vault's configuration, as well as determining rewards for Lending and Vault protocols.

The launch for Lending & Vault is scheduled for January, with the team planning to deposit $500K into Fluid in December. If anyone successfully hacks it, they can claim the entire amount. The DEX launching a few months after.