Fluid has risen rapidly, with cumulative trading volume exceeding US$13 billion in just 4 months, and has become Ethereum's second largest DEX. Its core innovation is "smart lending", which allows collateral and debt to be used at the same time to provide liquidity in DEX, greatly improving capital efficiency. (Abstract: Ethereum's third largest DEX" Fluid announced its brand reshaping: $INST has been renamed $FLUID, and will enter cross-chain bridges, stablecoins, RWA...) (Background supplement: Solana Defi Rises! Kamino Finance, the largest lending agreement Promote "USDT 116%" APY, where is the source of JLP's income? Are there high risks? ) As the meme coin scandal continues to ferment, the market has begun to turn its attention to projects with fundamentals. Recently, a slogan in the community is popular: "Basics are not important. , until it really works. "One of the projects that this sentence refers to is Fluid, the fastest-growing protocol in the DeFi field - an innovative DeFi project that combines lending and DEX to reshape capital efficiency. Fluid: Ethereum’s second largest trading volume DEX In less than 4 months, Fluid’s trading volume continued to grow. This month (February) has not yet ended, and the trading volume has exceeded January and has become the second largest trading volume DEX in Ethereum : Trading volume exceeded US$300 million in the past 24 hours, and the cumulative trading volume exceeded US$13 billion. Messari statistics indicate that Fluid now usually accounts for more than 10% of Ethereum DEX transaction volume. Fluid has gained the largest market share in the USDT/USDC trading pair; the newly launched ETH/USDC trading pair in December has reached 20%. (Dune real-time data) Source: DeFiLlama The lending market expands rapidly: Token Terminal data shows that Fluid's active loan volume increased by 15.9% in the past 7 days, one of the top three lending agreements with the highest growth. Expanding to Arbitrum has seen significant growth in 7 days: lending market TVL grew 57% to over $50 million, with trading volumes entering the top 10 Arbitrum DEXs. Co-founder Samyak Jain pointed out on the 17th that the goal for the next 30 days is to exceed $100 million in TVL and become the top three Arbitrum DEXs. So, why can Fluid rise so rapidly? This is thanks to its innovative mechanism. We started aggressive growth campaign of @0xfluid on @arbitrum 7 days ago. Here's how it's going 1) Money market: TVL up by 57% in 7 days. 2) DEX market: entered into top 10 DEXes on Arbitrum In next 30 days, Our target will be to reach $100M in TVL and come into top 3… pic.twitter.com/SV1QYCaFe2 — Samyak Jain (@smykjain) February 17, 2025 Fluid How to stand out? Fluid is created by the one-stop DeFi management platform Instadapp (@Instadapp) team. It was originally a lending platform and quickly gained market favor with the following features: Minimum liquidation penalty fee (see the post below for details) Higher LTV (loan-value ratio ): Volatile assets LTV up to 92% stablecoin pair assets (such as wstETH/ETH) LTV up to 95% LTV is higher, which also means that there is a higher liquidation threshold. The minimum impact on liquidation: only liquidate part of the necessary debts and restore the healthy status of the position. , rather than liquidating large amounts of assets in one go. Simply put, lending on Fluid allows you to lend more funds, with lower liquidation risks and smaller penalties. Currently, Fluid has become the fifth largest lending agreement for Ethereum TVL, with a total TVL of US$830 million. Liquidation penalty on lending services (=how much borrower lose on top of its collateral loss) @0xfluid: from 0.1% to 4% (depend on the market)@LiquityProtocol v2: 5%, paid to SP depositors@aave: 4 to 8.5 %, paid to the DAO@SkyEcosystem 1 to 10% — tokenbrice.eth (,) (@TokenBrice) February 18, 2025 "Smart Lending" creates a new DEX Based on this, Fluid launched a new DEX at the end of October 2024, Through Smart Collateral and Smart Debt can be used for DEX at the same time to provide liquidity, further amplify the benefits of capital. Smart Collateral: The mortgage of general lending agreements Products can only be used as debt guaranteeBut Fluid allows it to be used as DEX liquidity while earning transaction fees and lending interest, thereby improving capital efficiency. Smart Debt: Fluid allows debt to provide liquidity for DEX, which allows users to offset borrowing costs through transaction fees and even achieve "negative borrowing costs" in some situations, that is, borrowing Not only does it require no interest payment, it also makes additional profits. Combined with the launch of DEX, lending on Fluid can increase lending income while reducing borrowing costs. It's time. A revolution is underway and Fluid is leading the charge. The Fluid DEX is here and DeFi will no longer be the same. pic.twitter.com/QqXzpOSIga — Fluid (@0xfluid) October 29, 2024 Let's look at an example , The following figure is Fluid's ETH/USDT-USDC market, with smart debt function