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All You Need To Know About Fluid Tokens

What can you use Fluid Tokens' platform for, and what happened during their fair launch process?
Jan 26, 20244 min read396 views

The Fluid Tokens platform has snuck onto everyone’s rADAr over the past few days with the successful completion of their Liquidity Bootstrapping Event for their $FLDT token on the Minswap DEX—raising 8 million ADA in the process.

Here we’ll look at what Fluid Tokens is, the features the platform currently offers, and the ones it plans to offer, along with what happened in the LBE event and what utility these $FLDT tokens actually have.

What is Fluid Tokens?

Fluid Tokens is an open source, Cardano DeFi protocol that offers users a variety of non-custodial financial services. Here users can leverage their on-chain assets in a permissionless manner, by either borrowing against them or lending them out to earn an APR.

Elements of the Fluid Tokens protocol have been audited by two outside entities and the internal FT Labs team.

A number of the proposed Fluid Tokens features are live now, while others are in development for launch later in 2024. Live features include:

P2P Borrowing: Users use fungible and non-fungible tokens (NFTs) as loan collateral and request any amount of ADA or stablecoins. They can also bundle multiple NFTs from a collection into a collateral offering.

Borrowers set the interest rate along with the loan period and wait for a lender. They must pay the loan and interest back in a single transaction before the deadline or lose their collateral. Borrowers pay a 2.5% platform fee.

P2P Lending: Lenders view loan requests and choose ones to fulfill. Borrows have a Karma Rating based on past repayment performance, and a community-kept verified collections list helps to stop Lenders being scammed.

If the loan period ends before repayment is made then Lenders can immediately claim the collateral. Lenders pay no fee.

Pools Lending: An innovative function where lenders can create pools of liquidity tied to an NFT collection. They then set maximum loan limits, and anyone holding one of these NFTs can deposit it as collateral for an instant loan.

Other lenders can also add liquidity to these pools and earn ADA and $FLDT as a reward.

Boosted Staking: Lenders can lend their staked ADA for a self-determined APR. Borrowers lend this for a self-determined number of Epochs, but cannot spend it. Unborrowed ADA remains staked to the Lender’s chosen pool and earning staking rewards. Lenders get paid immediately upon their stake being borrowed.

Use cases for this include renting stake for airdrop snapshots, increasing a pool’s block count, and increasing ISPO rewards.

Fluid Tokens Liquidity Bootstrapping Event (LBE) Raises 8 Million ADA in 9 Hours

The LBE event took place on Minswap’s Launch Bowl and was meant to take place over 5 days, however, the first stage was completed in 9 hours, with deposits quickly surpassing the 4 million ADA minimum target and hitting the 8 million ADA hard cap.

32.5% of the total supply was distributed, with 70% of that distributed through the DEX liquidity pool and the other 30% distributed to farmers.

This fair launch process resulted in a great reception and accolades from around the ecosystem for Fluid Tokens, along with high trading volume for $FLDT in the following days as the token dominated trading volume on Cardano.

A Bright, Multi-Chain Future for Fluid Tokens

The above list of features is just the start for Fluid Tokens, who plan to add a whole host of features to the platform, including buy-now-pay-later for NFTs on top marketplaces, the ability to rent NFTs, and smart contracts that allow users to pay network fees in native tokens.

Fluid Tokens’ plans don’t stop at Cardano and they have a cross-chain vision that includes Milkomeda, Midnight, Polygon, Arbitrum, Solana, and Cosmos. The team has partnerships that target bringing real-world assets (RWAs) to Cardano.

Dekante aka cardano boy
4 weeks ago

Amazing project!!!

4 weeks ago

Amazing results, congratulations Fluid Tokens team