FLUID LP key features
Trustless and permissionless nature
FLUID LP cross-chain transfer does not introduce any form of custody over assets. Transactions are holistic and binary (entirely processed or entirely rejected). The liquidity required to process the transfer is frozen before the transaction is initiated to protect the user from insufficient liquidity and reversal error. If liquidity on a target pool is too low to handle the transfer, the user can put the request on the trading book and get it processed once target pool funds are re-balanced and sufficient.
Deep liquidity
Thanks to additional liquidity pooled by our partners we will be able to offer much deeper liquidity capable of processing big trades without any delays or errors.
Security
FLUID LP intends to become the ‘product of choice’ for institutional-grade investors. The product will meet all relevant legal requirements set forth for investors and investment banks operating on the traditional market and will remain fully transparent as of pooled liquidity and transaction processing. All solutions implemented by the product will be audited and bullet-proofed against any potential exploits (both technical and logical).
Stability
Liquidity pools used to perform cross-chain transfers will be managed by FLUID. It means FLUID LP users won’t suffer from sudden withdrawal of liquidity. Assets pooled as cross-chain chain liquidity fuel will be secured as long-term deposits ensuring stable growth of our product.
Dynamic concentration of liquidity
FLUID managing team will continuously monitor current market conditions and will make proactive decisions on appropriate balance setup and preferred trading directions.
Orderbook
Thanks to the implementation of the order book, liquidity, and cross-chain balance will be also actively modified based on the user's transfer request.
Example: John want’s to transfer 50M USDC from ERC-20 to BSC, current liquidity on BSC is 35M. John is in a rush, so he places his request in the order book. His assets are temporarily frozen by order book smart contract, in the meantime, balancing oracle is triggered and increases liquidity on BSC side based on balancing logic defined by FLUID. Once the amount of pooled assets on the BSC side is increased, John’s order is executed automatically.
Possibility to earn yield by pooling both stables or FLUID token
FLUID provides the possibility to participate in both FLUID LP revenue and $FLUID rewards to both cross-chain liquidity providers and standard $FLUID stakers.
Partnering with CEXs without sacrificing trustless and permissionless character
Most products AMMs and cross-chain swaps on the market treat CEX as something bad or ‘evil’. FLUID aims at building open partnerships in which assets owned and secured by integrated CEXs are used to secure deep, cross-chain liquidity. In the long-run, centralized exchanges will become a crucial partner in:
Building any-to-any cross-chain swap model
Cross-chain and hybrid order books for buy and sell requests filled up on multiple chains and platforms (both CEX and DEX) at the same time.
Securing part of our product’s liquidity by centralized exchange partners does not mean FLUID LP will sacrifice trustless or permissionless character - regardless of CEX involvement in liquidity provision, FLUID LP transactions remain non-custodial all the time.
Protection layer
FLUID LP offers a maximum layer of security and safety for institutional-grade investors.
No additional synths/wrappers
FLUID LP does not use any custom synthetic asset wrapping to handle cross-chain transfer. All transferable funds are publicly accepted by centralized exchanges and DEX platforms and can be freely transferred or traded without a need for additional operations like unwrapping or selling.
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