The world of perp DEXs is saturated, but there are still opportunities for savvy investors.
@FluoFinance is breaking the mold with its new Omnichain Liquidity-as-a-Service protocol.
Here's how it's changing the status quo and what it means for investors :
🧵
$FLUO $LVL $GMX
In this thread I will cover;
1️⃣ What is Fluo?
2️⃣ Working Mechanism
3️⃣ Chicken-Egg P/S
4️⃣ Products
5️⃣ Tokenomics
6️⃣ Conclusion
👉1️⃣ What is Fluo?
The perpetual dex market has matured and saturated. To survive, new perps must target new segments or introduce radical innovations.
For existing projects, they should introduce incremental innovations regularly to avoid losing market share.
Fluo's value proposition is clear and concise: They offer Liquidity as a Service (LaaS) for perp DEXs with a bribing mechanism to make them more cost-effective and attractive.
For projects ---> This leads to sticky liquidity, which in turn increases user retention.
For LPs ---> It allows for smart management and optimization of funds, resulting in better ROI.
👉2️⃣ Working Mechanism
Users can deposit $USDC to receive $FLP, which is a counterparty token for all trades on partner pools such as $GLP, $VLP, $gDAI
Fluo AMM then deposits these tokens into specific partner pools to accrue real yield.
Perpetual DEXs can bribe $veFLUO holders for gauge voting on their vaults.
Incentives can be given to LPs that bond to attract sticky liquidity.
👉3️⃣ Chicken-Egg P/S
Here's a dilemma: Fluo Finance needs to attract both sides of a two-sided marketplace - perp DEXs and LPs.
Here's how they're addressing the issue:
☑️ Incentivizing DEXs with capital efficiency, cost-effective capital retention, and bribes.
☑️ Incentivizing LPs with bribe returns, real yields, and auto-compounding features.
👉 4️⃣ Products
Fluo's liquidity management services are expanding beyond oracle-based perpetual DEXs to include CLMMs and CLOBs.
Their first partnership is with @demexchange.
5️⃣ Tokenomics
Fluo will use a 3-token system where:
✅ $esFLUO: Incentive for LPs, with a 12-month vesting period to convert $FLUO. It can be earned by staking $stFLUO and $esFLUO.
✅ $stFLUO: LSD token of $FLUO, share of trading fees on vaults distributed to it, 14-day unstaking period.
✅ $veFLUO: classic veTokenomics - up to 4 years lock, used for reward boosting, voting, and receiving bribes.
This project will not have any private sales or VC deals. Instead, a launchpad partner will conduct a public sale.
During the sale, 80% of the allocation will be distributed as $FLUO, and the remaining 20% will be distributed as $stFLUO.
6️⃣ Conclusion
Fluo fundamentally serves as a bribing platform for perp DEXs, offering a suite of both passive and active strategies for managing liquidity.
It strategically penetrates various segments of the ecosystem to enhance its overall utility.
In this ecosystem, there is a pressing need to facilitate market-making activities in a more decentralized manner
Fluo emerges as a potential solution, perfectly poised to cater to this requirement and bolster the functionality of the ecosystem
Narratives: Omnichain, PerpD , RY
Tagging chads who might be interested - $FLUO
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Tagging chads who might be interested - $FLUO
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