Fluid

Lending

Fluid is built to be the liquidity layer of DeFi through its innovative features including its liquidity layer, automated limits, and lending and vault protocols.

Risk Rating
Average
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Fluid incorporates the best practices from leading DeFi protocols like Aave, Compound, and Uniswap, creating a highly advanced, secure, and user-friendly lending platform.
What we like less
Fluid's dependency on protocol integration might pose risks in terms of stability and security. This reliance on a seamless interaction between multiple complex systems could potentially lead to vulnerabilities, especially in the early stages of deployment.
What it means for you
Fluid offers a dynamic liquidity platform where users can maximize their investments through simple earnings, improved borrowing capacities, and enhanced security features.
Information
Exploit/Hacks
None
Info
  • Website
  • Token: INST
  • Tags: Lending
Key Metrics
  • TVL: $424.4M (Rank #40)
  • TVL Ranking by Lending: #11
  • Blockchain: Ethereum
  • Chain TVL
    • Ethereum: $424.41M
Risk Assessment
Average
Protocol Code Quality
  • Code reviewed by at least one experienced auditor; StateMind
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Latest protocol version launched in 2024; maturity less than six months increases technical risk as smart contracts are less battle-tested
  • Top 5% by total value locked reduces risk
  • Requires members of a DAO to vote on-chain for approving contract upgrades
  • Timelock is less than 48hrs, which provides users with less time to exit if any malicious upgrades are approved
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • Secured lending market that uses a combination of isolated and cross-collateral pools depending on the individual asset serves to reduce risk
  • Solid controls in place to prevent risky borrowing
  • Robust mechanisms in place to ensure healthy liquidations
  • Solid methods to accrue protocol reserves
Things to know about Fluid

What is Fluid

Fluid, developed by Instadapp, is a novel DeFi protocol designed to address liquidity fragmentation and enhance capital efficiency within DeFi. At the core of Fluid is the Liquidity layer, which serves as the foundation upon which other protocols can be built. You can think of this as a central hub where liquidity from all protocols is consolidated. End users interact with the protocols, which in turn interact with the Liquidity layer. The Liquidity layer also introduces Automated Limits, which dynamically adjust the debt/collateral ceiling when funds are nearing limits. This allows organic borrowing activity to go through, while limiting any sudden whale movements that could point to code vulnerabilities or economic exploits. The Lend protocol within Fluid is designed to facilitate lending activities via direct access to the Liquidity layer. The Vault protocol is targeted towards borrowers and offers a range of benefits over existing borrowing protocols including better capital efficiency, higher loan-to-value (LTV), better rates, lower liquidation penalty, and smart debt & collateral features.

How Fluid makes money

Fluid currently charges no fees for using its lending protocol.

How you make money on Fluid

Users can profit from Fluid by participating as lenders, earning interest on accepted assets. Additionally, Fluid introduces unique features like Smart Debt, which allows users to earn from their debt positions by enabling their debts to act as liquidity for trading, effectively turning liabilities into assets that can generate passive income.

Fluid Pools
Fluid ETH Lending
10.1%
Yield
$70M
TVL
Risk
B
Protocol
Fluid
Chain
Ethereum