Fluid (FLUID) is an Ethereum-based decentralized finance protocol that grew out of Instadapp. Instadapp was known as a platform where users and developers could manage and build DeFi portfolios in one place, and it was co-founded by brothers Sowmay Jain and Samyak Jain.
After the Fluid DEX went live in late 2024, the project rebranded to Fluid in December 2024. The token ticker changed from INST to FLUID, with existing tokens migrated at a 1:1 ratio.
Fluid aims to run money markets and a decentralized exchange on a shared liquidity layer. Lending, vaults and the DEX are built as modules on top of this common base.
Traditional DEXs depend on dedicated liquidity pools and LP tokens, but Fluid sources liquidity directly from user positions in its vaults. As a result, capital supplied or borrowed for lending can also serve as trading liquidity, with the goal of improving capital efficiency.
Data provided by CoinGecko
FLUID is the governance token of the protocol, letting holders take part in proposals and votes on protocol changes and direction. Its total supply is reported as 100 million tokens, the same as the former INST token.
Fluid has expanded beyond Ethereum to other networks. Known developments include a Solana deployment through Jupiter Lend and a partnership with Venus on BNB Chain, and a second-generation DEX is part of its roadmap.
Combining lending and trading liquidity is seen as a novel approach to capital efficiency. The team's track record from the Instadapp era and its multi-chain expansion also support the ecosystem.
However, the complex design brings risks such as smart contract vulnerabilities, liquidations and liquidity stress during sharp market moves. Competition from other DeFi protocols and changing regulation are also factors, so reviewing official documentation before use is advisable.
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