How does FLUID LP works
The FLUID team is aiming to develop and introduce a minimal viable product to enable synth-free, cross-chain stablecoin transfers as soon as possible. The minimal viable product of FLUID LP will enable performing transfers of selected stablecoins from one chain to another (the most probable initial trading direction is ERC-20 to BSC and vice versa).
FLUID's vision is to enable truly integrated, and seamless exchange between all CEX and DEX platforms that need cross-chain swapping. FLUID identified this opportunity and are building a valuable tool that will benefit all users. There are plenty of users looking for better ways to carry out simple asset transfers across chains today.
FLUID LP - users, stakers and cross-chain liquidity providers
The solution that meets these needs also serves as FLUID's founding minimum viable product: the [crosschain stablecoin swap]
Balancing of cross-chain liquidity will be managed centrally by the FLUID balancing oracle that will be an algortihm monitoring proportions between stable pools on both chains and triggering appropriate balancing transactions if a specific imbalance threshold is reached based on supply and demand.
Synth-free approach means that FLUID is not going to introduce any new synthetic versions of stable coins to enable cross-chain transfers, instead it will use already existing assets (i.e. instead of wrapping BUSD liquidity into fBUSD synth assets, FLUID LP will be using direct BUSD reserves on BSC and Ethereum).
Deep liquidity is secured by concentrating pooled assets only on the most viable, high-volume trading directions, instead of trying to cover all possible cross-chain trading channels. FLUID will keep entering into new, strategic partnerships with stable-liquidity providers (CEXs, DEXs and individual investors), to gradually make the liquidity deeper and open new viable trading directions (e.g. Solana, Polygon, Polkadot etc.)
Please refer to the chart below to understand basic mechanics behind FLUID LP:
Pic 2 - FLUID LP: Cross-chain swap MVP
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