Fluid is an innovative DeFi protocol that significantly enhances capital efficiency by integrating lending and DEX functionalities. Its core mechanisms—Smart Debt, Smart Collateral, and a Unified Liquidity Model—enable users to earn trading fees while borrowing, effectively reducing borrowing costs.

Key Features:

• Smart Debt & Collateral: Borrowed debt generates yield, while deposited collateral earns both lending interest and trading fees, maximizing capital utilization.

• Unified Liquidity Layer: Multiple protocols share liquidity, supporting up to 95% LTV with low liquidation penalties (0.1%) and a batch liquidation mechanism to mitigate risks.

• Expansion & Partnerships: Fluid DEX ranks among the top DEXs by trading volume. Recent launches include DEX Lite and the upcoming V2, introducing automated strategies. A collaboration with Jupiter expands into Solana, with Jupiter Lend’s beta TVL exceeding $250 million.

• Token Buyback Plan: With annual revenue surpassing $10 million, the protocol will initiate a token buyback in October to enhance value capture.

Through modular design and multi-chain expansion, Fluid continues to optimize user experience and capital efficiency, positioning itself as a key player in DeFi.

Summary
Author: Castle Labs
Compiler: AididiaoJP, Foresight News

Money markets are central to DeFi, enabling users to gain exposure to specific assets through diverse strategies. This sector has grown significantly in Total Value Locked (TVL) and functionality, with protocols like @MorphoLabs, @0xFluid, @eulerfinance, and @Dolomite_io expanding the possibilities of lending.

This report focuses on Fluid, a protocol that stands out with features like Smart Debt and Smart Collateral. Beyond traditional lending, Fluid combines DEX capabilities to offer enhanced services. Its growth is evident in a total deposit size exceeding $2.8 billion.

How Fluid Works
Fluid employs a Unified Liquidity Model where multiple protocols—including lending, vaults, and DEX—share liquidity.

• Fluid Lending: Users supply assets to earn interest, which are utilized across the ecosystem for higher efficiency.

• Fluid Vaults: These single-asset, single-debt vaults allow up to 95% LTV, with a low liquidation penalty (0.1%) and batch liquidation inspired by Uniswap V3.

• Fluid DEX: Generates additional yield from trading fees, reducing borrowing costs and improving capital efficiency.

Users can deposit collateral into the DEX to earn both lending and trading fees (Smart Collateral) or borrow productive debt (Smart Debt) that generates yield to offset interest.

Recent Developments
Fluid DEX ranks 4th by 7-day trading volume, behind Uniswap, PancakeSwap, and Aerodrome. Key updates include:

• DEX Lite: Launched in August, it reduces gas costs by 60% and has already facilitated over $40 million in volume.

• DEX V2: Introduces modular, permissionless expansion with features like Smart Collateral/Debt Range Orders (similar to Uniswap V3), hooks for custom logic, and on-chain yield-accruing limit orders.

• Token Buyback: Approved by governance, a buyback will begin October 1 due to $10M+ annual revenue.

Expansion to Solana via Jupiter
Partnering with Jupiter (Solana’s largest DEX aggregator with $970B+ cumulative volume), Fluid has entered Solana’s lending market (TVL >$3.5B). Jupiter Lend’s public beta TVL exceeds $250 million, making it the second-largest money market on Solana. Smart Collateral and Smart Debt will launch on Jupiter Lend later this year, with 50% of revenue shared with Fluid.

Conclusion
Fluid’s unique offerings—Smart Collateral, Smart Debt, and Unified Liquidity—drive capital efficiency. Its expansion to Solana and iterative DEX improvements (Lite and V2) reinforce its competitive edge in DeFi. With DEX V2 slated for Solana later this year, Fluid is poised to capture broader market share across chains.

Fluid is an innovative DeFi protocol that significantly enhances capital efficiency by integrating lending and DEX functionalities. Its core mechanisms—Smart Debt, Smart Collateral, and a Unified Liquidity Model—enable users to earn trading fees while borrowing, effectively reducing borrowing costs.

Key Features:

• Smart Debt & Collateral: Borrowed debt generates yield, while deposited collateral earns both lending interest and trading fees, maximizing capital utilization.

• Unified Liquidity Layer: Multiple protocols share liquidity, supporting up to 95% LTV with low liquidation penalties (0.1%) and a batch liquidation mechanism to mitigate risks.

• Expansion & Partnerships: Fluid DEX ranks among the top DEXs by trading volume. Recent launches include DEX Lite and the upcoming V2, introducing automated strategies. A collaboration with Jupiter expands into Solana, with Jupiter Lend’s beta TVL exceeding $250 million.

• Token Buyback Plan: With annual revenue surpassing $10 million, the protocol will initiate a token buyback in October to enhance value capture.

Through modular design and multi-chain expansion, Fluid continues to optimize user experience and capital efficiency, positioning itself as a key player in DeFi.

Summary
Author: Castle Labs
Compiler: AididiaoJP, Foresight News

Money markets are central to DeFi, enabling users to gain exposure to specific assets through diverse strategies. This sector has grown significantly in Total Value Locked (TVL) and functionality, with protocols like @MorphoLabs, @0xFluid, @eulerfinance, and @Dolomite_io expanding the possibilities of lending.

This report focuses on Fluid, a protocol that stands out with features like Smart Debt and Smart Collateral. Beyond traditional lending, Fluid combines DEX capabilities to offer enhanced services. Its growth is evident in a total deposit size exceeding $2.8 billion.

How Fluid Works
Fluid employs a Unified Liquidity Model where multiple protocols—including lending, vaults, and DEX—share liquidity.

• Fluid Lending: Users supply assets to earn interest, which are utilized across the ecosystem for higher efficiency.

• Fluid Vaults: These single-asset, single-debt vaults allow up to 95% LTV, with a low liquidation penalty (0.1%) and batch liquidation inspired by Uniswap V3.

• Fluid DEX: Generates additional yield from trading fees, reducing borrowing costs and improving capital efficiency.

Users can deposit collateral into the DEX to earn both lending and trading fees (Smart Collateral) or borrow productive debt (Smart Debt) that generates yield to offset interest.

Recent Developments
Fluid DEX ranks 4th by 7-day trading volume, behind Uniswap, PancakeSwap, and Aerodrome. Key updates include:

• DEX Lite: Launched in August, it reduces gas costs by 60% and has already facilitated over $40 million in volume.

• DEX V2: Introduces modular, permissionless expansion with features like Smart Collateral/Debt Range Orders (similar to Uniswap V3), hooks for custom logic, and on-chain yield-accruing limit orders.

• Token Buyback: Approved by governance, a buyback will begin October 1 due to $10M+ annual revenue.

Expansion to Solana via Jupiter
Partnering with Jupiter (Solana’s largest DEX aggregator with $970B+ cumulative volume), Fluid has entered Solana’s lending market (TVL >$3.5B). Jupiter Lend’s public beta TVL exceeds $250 million, making it the second-largest money market on Solana. Smart Collateral and Smart Debt will launch on Jupiter Lend later this year, with 50% of revenue shared with Fluid.

Conclusion
Fluid’s unique offerings—Smart Collateral, Smart Debt, and Unified Liquidity—drive capital efficiency. Its expansion to Solana and iterative DEX improvements (Lite and V2) reinforce its competitive edge in DeFi. With DEX V2 slated for Solana later this year, Fluid is poised to capture broader market share across chains.