Thread by @0xfluid

1/ Announcing Fluid DEX!

The single most powerful, capital-efficient and scalable decentralized exchange built on top of the Fluid's Liquidity Layer.

2/ DEX will allow money market users to earn more on collateral & get discount on debt while for professional LPs to create leveraged LP position.

It uses a single auto-rebalancing range order which can be imagined as UX like Uniswap v2 and concentration like Uniswap v3.

3/ DEX protocol introduces two novel concepts
• Smart Collateral.
• Smart Debt.

4/ Smart Collateral allows users to utilize their collateral to not only borrow against it

But also deploy it as AMM liquidity on DEX to earn trading fees in addition to the lending fees.

5/ Smart Debt enables users to turn their debt into a yield-bearing asset.

Basically, it is used as trading liquidity hence earning trading fees which get discounted from the borrow APR.

6/ DEX allows different strategies that enable users to make their debt and collateral do more.

a)
• Normal Collateral - ETH, WBTC, wstETH, weETH..
• Smart Debt - USDC<>USDT, ETH<>wstETH, ETH <> weETH..

7/

b)
• Smart Collateral - ETH<>WBTC, ETH<>wstETH, ETH<>weETH..
• Normal Debt - USDC, USDT, ETH..

8/

c) Smart Collateral & Smart Debt

• Normal borrowing focus
Collateral - ETH<>wstETH, ETH<>WBTC, ETH<>weETH..
Debt - USDC<>USDT..

• Trading focus
Both Collateral & Debt are same and can be
1) wstETH<>ETH
2) USDC<>USDT
3) ETH<>USDC

9/ Trading-focused vaults let traders leverage their LP positions, earning high trading fees with leverage.

E.g., wstETH<>ETH at 95% LTV offers ~39x effective LP position and 39x trading fees!

10/ DEX protocol will bring a new age to the traditional DEXes with its capabilities to innovate along with the Lending and Vault Protocols.

Fluid DEX is scheduled to launch by July end.

For a more in-depth understanding, check out the blog post: blog.instadapp.io/fluid-dex/