Fluidity (FLUID)

Fluidity rewards users for using fTokens. That includes anything from simply sending a transaction, to performing swaps and buying NFTs.

Basics

• Based in:
• Started in / Announced on:
• Testnet release: 1-2022
• Mainnet release: 19-12-2022
• Not to be confused with Fluidity the annual meeting.

Audits & Exploits

• Bug bounty program can be found here (12-2022) and goes up to $100,000.
• Fluidity has been audited twice (12-2022).

Governance

Admin Keys

• From their docs (12-2022):

"Fluidity is governed by a pair of multisigs:

1. The community multisig (the operator) - a 4/6 multisig operated by members of the advisory team and well-respected members of the community at large
2. The emergency multisig (the emergency council) - a 2/6 multisig operated by the same members of the advisory team"

One of these members is ZachXBT.

Token

Utility

• From the docs (9-2022):

"The $FLUID Governance token serves multiple purposes including:

1. Utility Mining.
2. Bootstrapping and Rewarding Protocols.
3. Recieving Higher Expected Outcomes
4. Utility as a Service.
5. Changing Protocol Parameters."

Technology

• Whitepaper or docs can be found here.
• Code can be viewed [insert here].
• Deployed on: Ethereum

How it works

• From Decrypt (28-1-2023):

"Users first deposit a stablecoin (i.e. USDT, USDC, DAI, etc) into the Fluidity protocol and get a Fluidity-wrapped token (for the sake of this story, we'll call this asset an fToken, like fUSDT or fUSDC, for example). The original stablecoin is then deposited into a yield-earning protocol like Aave or Compound. That becomes a sort of lottery jackpot in this arrangement. The payout you get varies "based on total value locked, daily active users, and gas fee of the specific transaction,” Fluidity co-founder and CEO Shahmeer Chaudhry told Decrypt. “About half of transactions win something, whereas, on average, once every three months, someone will win a very large payout.”

But what about crafty degens who try to boost their odds by wash trading fTokens back and forth between their wallets? Chaudhry explained that the gas fees to execute such spamming would “statistically” outweigh the potential payout. “There will be cases where if you win a large amount, you will get way more than input costs, but statistically an attacker will go bankrupt,” he said. He and the Fluidity team call this the “optimistic solution.” This is because, “the algorithm also rebalances the yield distribution accounting for this, so if transactions spike up, probability of payouts go down, like a difficulty function,” meaning those lottery odds drop as usage rises."

• From their blog (19-12-2022):

"Fluidity works by wrapping stablecoins and lending out the underlying assets on money markets. Whenever a transaction with a fluid asset occurs, it counts as a potential yield-generating event. Transactions will be eligible for a reward which will be paid out instantly in the wrapped asset. Rewards can range from a few cents up to thousands of dollars, and there are no fees when using Fluidity. On top of that, the rewards will be split 80–20 between sender and receiver."

Roadmap

• Can be found here.

Team, Funding and Partners

Team

• Full team can be found [here].
• Shahmeer Chaudhry; co-founder & CEO
• Has the following advisors (12-2022):
  • ZachXBT
  • DCFGod
  • MrBlock
  • Eden (from The Block)
  • Igor (from The Block)
  • Big D Senpai
  • Ivan (LobsterDAO & Gearbox)

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