UNDERSTANDING FLUID: A COMPREHENSIVE OVERVIEW

Summary from the TLDR Crypto newsletter

Fluid's Liquidity Layer unifies onchain capital by pooling deposits into multisided lending, vault, and DEX protocols, allowing users to earn yield while enabling overcollateralized borrowing and efficient asset swaps. Its Vault protocol's range-based liquidation engine supports up to 95% LTV with minimal penalties, and its “Smart Collateral” and “Smart Debt” primitives let collateral and debt positions double as DEX liquidity, driving over $10 billion in USDC–USDT volume. Since rebranding from Instadapp in late 2024, Fluid has grown to nearly $2 billion in deposited collateral and surpassed $46 billion in DEX trading volume across Ethereum and its Layer 2s, all governed by FLUID tokenholders. Upcoming upgrades include a modular, gas-efficient DEX V2 and a Solana launch via Jupiter Lend.