Cryptocurrency Exchange Fluid
Fluid joins two things that usually live apart: a lending protocol and an exchange. Collateral posted against a loan simultaneously works as liquidity in DEX pools. The same capital serves both the debt and the swaps, and the owner earns from two sources.
The mechanism is new, and the price of it is complexity. A position depends on both the collateral price and the state of the pool, so liquidation risk is not as straightforward as in plain lending. The protocol runs on Ethereum, Arbitrum and Base. The TVL figure on this page counts only the DEX side, without lending: these are different products and merging them into one number would be misleading.
Advantages
- High capital efficiency by combining lending and trading
- Minimal slippage for large trades
- Built on Instadapp's proven infrastructure
Disadvantages
- Relatively new protocol (2024)
- Limited number of supported networks
- Complex mechanics for regular users to understand
Security
- Security audits by leading firms
- Non-custodial architecture
- Built on Instadapp's proven codebase since 2019