Cross-chain liqudity

Stablecoin based cross-chain liqudity

Offering trustless, cross-chain liquidity requires creating pools with the same asset on both chains. If this would have been done using a volatile asset, the overall liquidity would be subjected to dramatic volatility caused by the price fluctuation of that underlying asset. Using stablecoin as a cross-chain medium ensures that pooled liquidity value remains the same.

Using stablecoins is also driven by our partnership program - any CEX, DEX or investor can pool stable reserves as a part of our cross-chain solution and participate in revenue generated by it.

Cross-chain transfer order book

Usually, when a trustless cross-chain product is not able to perform a transfer due to insufficient liquidity (insufficient funds pooled on the target chain), the user is forced to ‘come back and check later’ or claim his assets on a target chain in a ‘wrapped’ version (can be unwrapped once liquidity is sufficient or sold via dedicated DEX trading pair).

This is not a perfect solution, as users are forced to either wait or take a risk of selling wrapped assets for a price that might be less than expected (especially in the case of big transfers and related price impact).

This can be easily solved by implementing an order book that automatically triggers the transfer for you once liquidity is sufficient. It could be imagined as a ‘waiting list’ using the ‘first come first served’ method.

FLUID LP order book will be connected with staking. The more tokens are staked and the longer they are held in the staking vault, the higher ‘level’ staker will unlock. Levels will be translated into priority order in which transfer requests are handled. For example, in case the order book has 5 transfer requests from users with levels: 5,3,3,2 and 1, level 5 will be handled first, then users with level 3 (based on the first-come, first-served rule), then users with level 2, and lastly, user with level 1.

Please refer to the next section to better understand the FLUID staking model.