Intro to Fluid

Fluid is a decentralised application made by Instadapp introducing innovative features like unified liquidity layer, automated limits, lending and vault protocol, oracle system, and a DEX protocol.

Fluid incorporates proven concepts from several known protocols:

• Uniswap V3 - uses slot-based liquidity to optimize liquidations

• Maker DAO - implements vault-based borrowing system for better asset security, automated ceilings, and reduced gas overhead

• Compound & Aave - uses pool-based liquidity and utilization-based rate curve

• Curve - Innovates on Smart Debt & Smart Collateral, allowing users to use both their collateral and debt as DEX liquidity

Key Innovations

• Unified Liquidity Layer - eliminates fragmented liquidity by providing single source for all Fluid-based protocols.

• Offers up to 95% LTV on non-correlated assets and allows up to 20x leverage on borrowing.

• Automated Ceilings prevent sudden whale movements and enhance security based on real-time utilization rates.

• Advanced Slot-based Liquidations (with liquidation penalties as low as 0.1% and up to 3%) enable the most gas-efficient method for liquidations.