# Fluid

> Financial system of the future

Fluid is a DeFi lending and trading protocol. It lets users lend, borrow against collateral, and swap tokens through protocols that share a single Liquidity Layer.

Fluid is a decentralized finance protocol that combines lending, collateralized borrowing, and token trading on one shared liquidity base. Its Liquidity Layer holds the capital that every Fluid protocol draws on, so a new protocol does not need to attract its own deposits. The protocol is aimed at DeFi users and integrators who want efficient use of capital across these functions.

Lenders deposit assets through the Lending Protocol to receive fTokens and earn yield, while the Vault Protocol lets borrowers lock one collateral asset against one debt asset at high loan-to-value ratios. The DEX Protocol adds smart collateral and smart debt, so deposited collateral and borrowed positions can earn trading fees. The stETH Protocol lets holders of leveraged stETH positions unwind them directly against Lido withdrawals at lower cost than selling on the market.

Fluid DEX is the main trading venue, alongside the lending and vault protocols and resolver contracts that let aggregators, liquidation bots, and other integrators read protocol data. The FLUID token is used to vote on protocol parameters and asset listings. Fluid is used by lenders, borrowers, liquidity providers, traders, and DeFi integrators.

- Type: Company
- Sector: Finance
- Status: Active
- Founded: 2024-02-01
- Profile: https://thegrid.id/profiles/fluid

## Products

- [Fluid Liquidity Layer](https://thegrid.id/profiles/fluid): Fluid Liquidity Layer is the core smart contract layer that holds the liquidity used by every Fluid protocol, so the lending, vault, and DEX protocols draw on one pool instead of attracting deposits separately. Protocols built on Fluid supply and borrow from the layer within automated limits, which lets capital move between lending, borrowing, and trading. A Liquidity Resolver gives integrators read-only data on pools, user positions, token listings, and rates. (Developer Tooling, Live, Main Product)
- [Fluid Lending Protocol](https://thegrid.id/profiles/fluid): Fluid Lending Protocol is the deposit-and-earn protocol of Fluid, where users supply assets to the Liquidity Layer and receive ERC-4626 fTokens that earn yield. Deposits are lent to borrowers across Fluid's vault and DEX protocols for long-term, sustainable returns. A Lending Resolver gives integrators read-only access to fToken data, rates, rewards, and user positions. (Decentralised Borrowing & Lending, Live)
- [Fluid Vault Protocol](https://thegrid.id/profiles/fluid): Fluid Vault Protocol is a borrowing protocol where users lock one collateral asset and borrow one debt asset in a vault. Vaults allow high loan-to-value ratios on collateral and use the Liquidity Layer for the borrowed funds. Resolver contracts expose vault, position, tick, and liquidation data, so liquidation bots and DEX aggregators can use available liquidations as swaps. (Decentralised Borrowing & Lending, Live)
- [Fluid DEX](https://thegrid.id/profiles/fluid): Fluid DEX is a decentralized exchange built on the Fluid Liquidity Layer and combined with the Vault Protocol. Its smart collateral and smart debt features let users earn trading fees on the collateral they deposit and on their borrowed debt. DEX aggregators can add its pools as a liquidity source through the Dex Reserves Resolver and a published integration guide. (Decentralised Exchange, Live)
- [Fluid stETH Protocol](https://thegrid.id/profiles/fluid): Specialized protocol enabling direct deleveraging of leveraged stETH/ETH positions at parity with Lido through short-term loan strategies, reducing costs compared to market deleveraging. (Decentralised Borrowing & Lending, Live)
- [Fluid DEX Lite](https://thegrid.id/profiles/fluid): Gas-optimized decentralized exchange designed for small, frequent swaps of correlated asset pairs. Operating as a credit-based protocol on top of the Fluid Liquidity Layer, it borrows liquidity directly from the shared pool rather than requiring dedicated deposits. The singleton architecture enables efficient multi-hop routing and is designed to lower swap costs compared to the standard Fluid DEX. (Decentralised Exchange, Inactive/Support Ended)
- [Fluid Lite](https://thegrid.id/profiles/fluid): Fluid Lite is a yield platform that runs automated ETH and stablecoin strategies from one deposit. The ETH strategy loops liquid staking positions across lending protocols, while the stablecoin strategy routes deposits across yield-bearing stablecoins with lending and borrowing loops. Looping, collateral management, leverage and reward compounding run automatically for the depositor. (Yield Aggregator, Live)

## Assets

- [Fluid (FLUID)](https://thegrid.id/profiles/fluid): FLUID is the governance token of Fluid, a DeFi protocol built by Instadapp that unifies lending, borrowing, and trading through a shared Liquidity Layer. It is used to vote on protocol parameters, asset listings, vault configurations, and which protocols can build on top of the Liquidity Layer. Proposals require voting rights of 1% of total supply to submit and 4% to reach quorum, ensuring governance participation is weighted toward significant stakeholders. (Governance)

## Links

- [Main](https://fluid.io)
- [Documentation](https://docs.fluid.instadapp.io)
- [Forum](https://gov.fluid.io)
- [Twitter / X](https://x.com/0xfluid)
- [GitHub](https://github.com/Instadapp)
- [Twitter / X](https://x.com/Instadapp)

## Relationships

- [Instadapp](https://thegrid.id/profiles/instadapp): Parent organization

## Legal

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- [TGS Field Descriptions](https://github.com/The-Grid-Data/workspace-public/blob/main/references/tgs-field-descriptions.md): Schema field definitions for The Grid's data model
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- [Product Type Definitions](https://github.com/The-Grid-Data/workspace-public/blob/main/references/product-type-definitions.md): Definitions for each product type
- [Product Type Classification](https://github.com/The-Grid-Data/workspace-public/blob/main/references/product-type-classification.md): Guide for classifying products into types
- [Grid MCP Guide](https://github.com/The-Grid-Data/workspace-public/blob/main/grid-search/skills/grid-query/references/grid-mcp-guide.md): How to query The Grid programmatically via MCP