Fluid: A DeFi Stack That Just Works

Instadapp launched Fluid in early 2024 to reinvent decentralized finance with a unified system optimized for seamless capital flow. Moving beyond limitations in existing protocols, Fluid treats liquidity as a shared resource and has rapidly scaled to nearly $2 billion in collateral without relying on heavy incentives. Its standout features, especially Smart Debt and Smart Collateral, allow assets to simultaneously reduce borrowing costs and generate yield. The platform has chosen Arbitrum for its scalability and user adoption, and is preparing to launch Fluid DEX V2 with fully customizable modules and integrations.

Key Ideas

Smart Liquidity Mechanisms: Fluid introduces Smart Debt (yield-generating borrowed assets) and Smart Collateral (LP token collateral for additional yield), driving unprecedented capital efficiency.
Permissionless Deployment: The upcoming DEX V2 allows customizable AMM logic, fee structures, and deep integrations, enabling bespoke DeFi primitives on Arbitrum.

Why It Matters?

Developers have the opportunity to integrate Agglayer into new Polygon dApps to unlock seamless cross-chain interoperability. By aligning product incentives with Agglayer’s Breakout Program, they can reward POL stakers and attract committed early users through built-in airdrops.

Entrepreneurs have an opportunity to create DeFi products that integrate Fluid’s mechanisms to offer compelling financial advantages to users taking advantage of reduced borrow rates and enhanced lending yields. Positioning products on Arbitrum and emphasizing Fluid’s efficiency and customization can unlock faster user growth and retention.