Instadapp Introduces Fluid Lending Protocol to Address Liquidity Fragmentation
Instadapp, a decentralized finance platform, has unveiled its new lending protocol called Fluid. The protocol aims to tackle the issue of liquidity fragmentation in the DeFi sector by integrating functionalities from popular platforms such as Aave, Compound, Uniswap, Maker, and Curve.
Preliminary Testing and Release Timeline
Fluid is currently in its preliminary testing phase, with audits expected to be finalized by the end of November. In December, a bug bounty event is planned, and the official release of the protocol is projected for January.
Key Features of Fluid
Fluid’s “Liquidity Layer” design provides users with a seamless transition across major DeFi protocols. It consolidates liquidity and features for lending services while ensuring stable lending rates. The protocol incorporates methodologies from Ethereum’s key DeFi platforms, including Uniswap v3, MakerDAO, Compound, Aave, and Curve.
Fluid will allow users to borrow up to 95% of their ETH’s value with a focus on risk mitigation. The protocol’s loans adapt in real-time to limit unexpected significant transactions and reduce potential risks.
INST Token as Governance Token
The governance token for Fluid will be Instadapp’s native token, INST.
Instadapp’s Value Locked and Funding Round
According to DefiLlama, Instadapp currently has $1.8 billion locked in its smart contracts, making it the 10th largest DeFi platform across all blockchains. In 2021, Instadapp raised $10 million in a funding round led by Standard Crypto and received contributions from DeFi Alliance, Longhash Ventures, and Andre Cronje.
Hot Take: Fluid Revolutionizes DeFi Liquidity
The introduction of Fluid by Instadapp marks a significant step towards addressing liquidity fragmentation in the DeFi sector. By integrating functionalities from various popular platforms, Fluid offers users a seamless experience and stable lending rates. With its innovative features and risk mitigation measures, Fluid has the potential to revolutionize the DeFi lending landscape. As Instadapp continues to gain traction and secure substantial funding, it solidifies its position as a major player in the DeFi space. Keep an eye on Fluid’s official release in January as it could have a transformative impact on the DeFi ecosystem.
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