Multi-pool format

This general multi-pool format allows FLUID to create targeted rewards that match the preferences of specific client segments, and price them appropriately. Once funded, these pools offer another source of liquidity (over and above that provided by FLUID’s aggregated order book). If their TVL becomes sufficiently large, they can meaningfully increase the liquidity available to FLUID members. Is this possible? It may first appear that the TVL growth of these pools would be limited to the growth in the number of exchanges using FLUID. But that’s not the case. There’s a quicker way to scale, and that’s by opening these liquidity pools up to the public.

This is how it would work:

Multi-Pool Economy

FLUID Finance introduces the following value circulation model: 1. Each exchange will have its own liquidity pool. By funding it with their own assets, exchanges can claim a defined set of rewards.

2. FLUID designs these pools to come with an inbuilt option that allows exchanges the option to open them up to receive public contributions.

3. If public contributions are enabled, these increase the pool’s TVL, and so, the reward claim the pool is eligible for.

4. The pool owner can choose a percentage of rewards they wish to share with their public contributors as compensation and to continue attracting public participation in the future.

Scaling Mechanism

Overall, this design is reminiscent of a DeFi twist on the “delegated Proof of Stake” mechanism that’s used to secure blockchain networks. By opening up pools to public participation this way, FLUID’s own TVL can scale independently of the number of exchanges signed up to the network, and at a rapid pace. These extra liquidity reserves, when combined with operational data and the experience accumulated on FLUID’s platform, set foundations that will support a wide range of flexible, targeted liquidity innovations. They also enable FLUID to engineer liquidity integration services between decentralized exchanges, in the future.