Fluid: Supercharging LPs with Unified Liquidity

Market Overview

Fluid is a DeFi protocol built by the Instadapp team that combines a lending protocol and DEX into a single product. The novel innovation created by the team is a unified liquidity layer which serves every component product of the protocol. The single liquidity layer enables lenders to stay in one platform and benefit from any new product innovations, while simultaneously offering borrowers deeper liquidity and better UX. It also enables lenders and borrowers to make productive use of their collateral or debt by LPing the Fluid DEX simultaneously. This innovation has achieved incredible capital efficiency relative to competitors, in turn attracting users and driving rapid growth, as highlighted by the protocol's rise in TVL.

Fluid’s capital efficiency relative to other lending protocols can be seen in the high Loan to Value (LTV) ratio, as well as the extremely low liquidation penalty.

Finally, this growth has captured 4% of TVL market share amidst leading money markets.