Thread by @0xfluid

Introducing Fluid DEX v2 🌊

We’ve taken inspiration from everything in DeFi to build something beyond just a better DEX — we're creating the most advanced decentralized exchange the crypto space has ever seen.

🧵 👇

A quick recap

DEX v1 was launched in late 2024 and introduced novel concepts such as Smart Collateral and Smart Debt

In only 3 months, Fluid DEX became the fastest-growing DEX in crypto and the second biggest DEX on Ethereum by volume

But since the beginning, we have had a plan for DEX v2

At its core, Fluid DEX v2 runs on a singleton contract built atop the Fluid Liquidity Layer, enabling infinite composability while massively improving capital efficiency and gas usage as well as allowing cross-collateralization on the Fluid lending market.

One of the most important Fluid DEX v2 new features allows users to create their ranges on both Smart Collateral and Smart Debt sides

LPs will get unmatched flexibility & capital efficiency by creating their unique liquidity profiles that have never been possible in DeFi before.

Governance can deploy infinite DEX types, each with its own logic and math, supporting every known AMM model and allowing for the creation of new ones.

DEX pools deployment will be permissionless, meaning that anyone can create any pool with any underlying AMM algorithm.

v2 is built with modularity and permissionless expansion in mind. It will support:

• Fully Permissionless Smart Lending
• Conditionally Permissionless Smart Collateral
• Conditionally Permissionless Smart Debt
• Conditionally Permissionless Smart Collateral and Smart Debt

On launch, DEX v2 will support 4 major DEX types:

• Type 1: DEX v1 Smart Collateral
• Type 2: DEX v1 Smart Debt

DEX v1 codebase will be ported to DEX v2 with minimal updates to allow better gas efficiency and some new features.

• Type 3: Smart Collateral Range Orders

Like Uniswap v3 range orders, but enhanced — the liquidity earns lending APR by default and can be used as collateral.

• Type 4: Smart Debt Range Orders

Create range orders on the debt side by borrowing assets - a completely new primitive.

More DEX types are in the works - including one focused on building the most advanced perpetuals system ever seen on-chain.

DEX v2 goes far beyond standard AMM capabilities:

• By default, LP positions earn lending APR
• Range orders creation via debt
• Custom logic and automation for DEX interactions via Hooks (inspired by Uni v4)
• Flash Accounting (inspired by Uni v4)
• On-Chain Dynamic Fees
• On-Chain Limit Orders

LPs can create advanced positions with built-in leverage, yield, and flexibility.

For example, users can deploy Multiple Smart Collateral and Smart Debt range orders

With DEX v2 primitives, LPs can invent entirely new yield and trading strategies — or automate them using hooks.

Fluid DEX v2 isn't just a product upgrade — it's a leap forward in AMM design.

With unmatched flexibility, a robust architecture, and the introduction of financial logic that simply wasn’t possible before, DEX v2 positions Fluid as the most dominant AMM in DeFi.

DEX v2 is undergoing testing and auditing and is expected to be live in June-July.

Want to explore more?

Read the full article below:
blog.instadapp.io/fluid-dex-v2/