HOW NOT TO REKT YOUR USERS WITH INCENTIVES ON THE LENDING MARKET

Summary from the TLDR Crypto newsletter

Recently, incentive rewards on Aave created non-organic behavior that resulted in -330% APR for looping borrowers. Fluid, in contrast, is implementing a more sustainable approach by incentivizing ETH lenders rather than borrowers, enabled by its shared pool liquidity and vault system. Its flexible architecture allows more changeable markets to respond sustainably to user behaviors and avoid sudden disruptions.