> For the complete documentation index, see [llms.txt](https://help.defisaver.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.defisaver.com/protocols/fluid/intro-to-fluid.md).

# 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.