Fluid

Company OverviewFluid

was founded in 2024, and its decentralized exchange (DEX) will go live in late October 2024. The project operates using a decentralized protocol, and the specifics of its headquarters are not publicly disclosed, which is in line with the global and permissionless nature of blockchain technology. Fluid has raised $12.4 million from investors, including well-known DeFi protocols such as Lido Finance and Ether.fi, demonstrating that it has strong industry support. The team's focus on integrating DEX and lending capabilities reflects its vision to solve liquidity fragmentation and improve DeFi capital efficiency. The launch of its native token, FLUID, is designed to incentivize participation and governance.

Products & ServicesFluid

offers a range of DeFi products and services designed to simplify trading, lending, and liquidity provision. Its core products include:

1. Hybrid Decentralized Exchange (DEX) and Lending Protocol
   Fluid's flagship feature is to combine a decentralized exchange with lending capabilities, allowing users to trade tokens and use their debt and collateral as liquidity. This hybrid model enables borrowers and lenders to participate in DEX pools, resulting in capital efficiency. The platform supports token swaps for Ethereum and Arbitrum-based assets and focuses on stablecoin pairs with low slippage transactions.

2. Centralized Liquidity Pools
   Fluid) employ a centralized liquidity model that allows providers to allocate funds within a specific price range to optimize yield and reduce slippage. The platform's stablecoin trading pools are particularly dominant, with posts on X indicating that Fluid is leading the way in the stablecoin trading pool space on the Ethereum and Arbitrum platforms. Liquidity providers earn trading fees (typically 0.3%) and FLUID token rewards.

3. Fluid Pass NFTs
   Fluid offers unique Fluid Pass NFTs that will initially be airdropped to whitelisted users of protocols such as Lido Finance and Ether.fi. These NFTs can be minted on Arbitrum to reduce gas fees and enjoy exclusive features such as higher yields or governance rights, with further revelations of their practical use in the future. This will incentivize early adoption and community engagement.

4. Governance & FLUID Token
   FLUID token is the utility token and governance token of the protocol. Holders can participate in community-driven governance, voting on proposals such as fee structures and protocol upgrades. The Hyperliquid-inspired buyback mechanism uses a portion of the transaction fee to buy back FLUID tokens, potentially increasing their scarcity. While the detailed tokenomics have not yet been fully disclosed, the token is essential to incentivize liquidity and user engagement.

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5. multi-chain scaling plan
   Fluid is built on top of Ethereum and Arbitrum to take full advantage of Arbitrum's low-cost Layer-2 scaling capabilities. The platform plans to expand to more blockchains and aims to be a liquidity layer for the broader DeFi ecosystem, including real-world assets (RWAs). This cross-chain vision enhances its interoperability and market reach.

6. Security & Transparency
   Fluid has put security top of mind through multiple smart contract audits and published a post on X highlighting its commitment to robust infrastructure. The protocol promotes transparency through open communication through community channels and plans to release open-source code, which is in line with DeFi's "trustless" philosophy.

7. Wallet integration
   Fluid supports non-custodial wallets like MetaMask and WalletConnect, ensuring that users are in control of their funds. Its KYC-free policy enhances accessibility and attracts privacy-conscious and decentralized users.

Market PositioningFluid

is positioned as an innovative DeFi protocol that combines DEX with lending to create an efficient liquidity layer. Since its launch in October 2024, Fluid has made significant progress, reaching $300 million in trading volume within seven days of going live, as reported in the X blog post. By May 2025, Fluid will be the second-largest DEX by volume on the Ethereum and Arbitrum platforms and is expected to take the lead in stablecoin trading pools. Its total value locked (TVL) is growing, driven by high-yield opportunities and community incentives like Fluid Pass NFTs.

Fluid's target customers are traders looking for efficient swap trading, liquidity providers looking for high returns, and projects that need scalable liquidity solutions. Its focus on stablecoin pools and plans to integrate risk-weighted assets (RWAs) attract users interested in low-volatility assets. The platform boasts a user-friendly interface and Arbitrum's low fees ($0.01-$0.03 on average), making it convenient for both retail and institutional users. Fluid's roadmap includes further on-chain integrations and token buybacks, aiming to maintain growth and capture a larger DeFi market share.

SummaryLaunched

in 2024, Fluid is a decentralized exchange and liquidity protocol based on Ethereum and Arbitrum with a hybrid decentralized exchange lending model. Its products include centralized liquidity pools, Fluid Pass NFTs, and a planned multi-chain expansion designed to meet the needs of traders, liquidity providers, and project parties. With an initial trading volume of $300 million and a focus on stablecoin swaps, Fluid is an emerging player in the DeFi space. Although challenges such as limited data and DeFi risks remain, its innovative design and focus on the community make it a significant contributor to the DeFi ecosystem. Users should exercise caution to avoid potential risks.