Fluid

Fluid is a decentralized finance protocol built by Instadapp that merges lending, borrowing, and trading into a single composable system. Most DeFi protocols fragment liquidity across isolated pools; Fluid routes all deposited capital through a shared Liquidity Layer, where the same assets simultaneously support lending, borrowing, and DEX market-making. The result is higher capital efficiency across every product the protocol offers.

Instadapp was founded in 2018 in Delhi by brothers Samyak Jain (CEO) and Sowmay Jain (CTO). After years building DeFi middleware and working alongside MakerDAO, Aave, Compound, and Curve, the team designed Fluid to address liquidity fragmentation at the infrastructure level. Fluid launched under its own brand in early 2024.

The Liquidity Layer is a single smart contract that holds all funds and serves exclusively as the counterparty for protocols built atop it. Every deposit into Fluid lending, vault, or DEX products enters this shared pool and becomes available across all three contexts at once. Automated per-block ceilings adjust debt and collateral limits to manage risk without restricting organic growth.

Three core protocols sit atop the layer. The Lending Protocol follows ERC4626: depositors receive fTokens and earn yield from actual borrower interest and DEX fees, not emissions. The Vault Protocol offers LTV ratios up to 95 percent on ETH with liquidation penalties as low as 0.1 percent, compared to 5-10 percent typical elsewhere, using Uniswap TWAP and Chainlink oracles. Fluid DEX, which launched v2 in April 2025, introduces Smart Collateral and Smart Debt.

Smart Collateral lets depositors simultaneously use assets as loan collateral and DEX liquidity, earning AMM trading fees while the position remains margined. Smart Debt routes borrowed assets into DEX pools so that swap fees offset the borrower's interest cost; in active markets fees can exceed interest entirely. These primitives allow the same capital to perform multiple roles at once.

The FLUID token has a fixed supply of 100 million, allocated 55 percent to community and ecosystem, 23.79 percent to the team, 12.09 percent to investors, 7.85 percent for future partnerships, and 1.27 percent to advisors. Governance runs through the Fluid DAO with a 1 percent supply threshold to submit proposals, 4 percent for quorum, and a two-day timelock before execution.

Security audits have been completed by PeckShield, StateMind, MixBytes, Cantina, and Certora, with Certora providing formal verification of both EVM and Solana codebases. Fluid also ran a 500,000 USD bug bounty program.

On Solana, Jupiter Lend launched on August 27, 2025 as a partnership between Fluid and Jupiter Exchange, the first non-EVM deployment of the Fluid lending layer. A full Fluid DEX on Solana was in final audit as of mid-2026, with programs maintained at github.com/Instadapp/fluid-solana-programs. In 2025, Fluid DEX ranked as the second-largest decentralized exchange on Ethereum by annual volume, processing approximately 156 billion USD in trades. Protocol TVL peaked above 3 billion USD.