About

Fluid Protocol is a decentralized lending system on the Fuel network, offering interest-free loans in exchange for over-collateralized assets. It allows users to mint USDF, a stablecoin pegged to USD, and supports multiple collateral types with a fixed minimum collateral ratio and partial liquidation mechanism.

History

In December 2023, Fluid Protocol announced a major rebranding and tokenomics overhaul, preparing the groundwork for its evolution into DeFi’s unified liquidity layer. This included proposals for algorithmic buybacks, growth incentives, and a refreshed visual identity.

In January 2024, the team launched an upgrade to its permissionless on-chain credit system, allowing protocols and DAOs to borrow directly against their TVL through Fluid’s pooled assets. Early partnerships with Chainlink CCIP and liquidity bootstrapping on Arbitrum and Base marked its multi-chain ambitions.

In April 2024, Fluid completed its initial governance reform, activating decentralized treasury management and launching incentive programs for stable lending and volatile asset pools. The community approved ongoing monthly FLUID rewards to drive growth and new protocol integrations.

In August 2024, Fluid deployed the DEX Lite product - a streamlined, gas-efficient AMM router for small trades and long-tail assets.

In November 2024, the protocol released its growth roadmap for 2025, setting a target of $10B market size and $30M annualized protocol revenue. Algorithmic buybacks and treasury-driven incentive pools were approved to further decentralize economic control and align DAO participants.

In May 2025, Fluid Protocol expanded to Solana with a Jupiter Lend beta, piloting non-EVM integrations and opening cross-chain lending for leading DeFi protocols. Strategic backers including Coinbase Ventures, Animoca, and Pantera Capital contributed to ecosystem development and institutional adoption.

In August 2025, Fluid reported a peak $3.2B in market size and over $79B in swap volume, ranking as the 4th largest money market protocol and the 2nd largest in active loans.