Fluid

Fluid is a unified liquidity protocol built by the Instadapp team, in which a single Liquidity Layer sits underneath a lending market, vaults and a native DEX, so the same dollar of deposits backs multiple functions at once (Instadapp blog, Fluid introduction, 10 Oct 2023). Its two signature primitives are Smart Collateral, where collateral is simultaneously deployed as DEX liquidity earning trading fees, and Smart Debt, where the borrowed position itself acts as DEX liquidity so trading fees offset borrowing cost (Instadapp blog, Fluid DEX, 19 Jun 2024). The Liquidity Layer is deliberately minimal, a contract that stores assets and validates supply, borrow, repay and withdraw with automated per block debt and collateral ceilings, while rate logic and risk management live in modules on top (OAK Research, Fluid). That architecture supports LTVs up to 95% with liquidation penalties as low as 0.1% via a tick based liquidation engine where traders act as liquidators (Instadapp blog, Fluid introduction). The Instadapp governance token INST was renamed FLUID at a 1:1 ratio in December 2024, keeping the same token address and 100M supply (Rebranding and Growth Plan for Fluid Protocol).