FLUID

• Fluid, built by the Instadapp team, combines a lending market and a decentralised exchange in a single system.

• Collateral deposited to borrow also serves as DEX liquidity, so the same capital earns twice.

• FLUID is the governance token for the protocol.

• Converted from the earlier INST token.

• Used for governance over protocol parameters and incentive allocation.

Pros:

• Capital efficiency is genuinely higher than running lending and liquidity separately.

• Its liquidation engine handles positions in smaller increments than conventional protocols, reducing penalty size.

• Meaningful DEX volume relative to its total value locked.

Cons:

• Combining lending and trading in one system enlarges the contract surface and couples two risk domains.

• Newer than the incumbents it competes against.

• Governance token with no direct claim on protocol fees.

• Exposure to a design that improves on the capital efficiency of separated lending and trading.

• Built by a team with a long operating history in DeFi.

• Weigh the added complexity of merging two systems.

• Collateral that simultaneously backs a loan and provides exchange liquidity, rather than sitting idle.

• Capital in lending protocols sits unused except as a liquidation buffer.

• Routing that same capital into trading liquidity extracts a second yield from it.

• Built by the Instadapp team, founded by brothers Sowmay and Samyak Jain.

• The team has operated DeFi infrastructure since 2018.

• No public sale. INST was distributed to Instadapp users and converted to FLUID.

• Smart contract risk across a system that merges two distinct financial primitives.

• Liquidation mechanics are novel and less battle-tested than conventional auctions.

• Oracle dependency for both lending and trading functions.

• Competitive pressure from established lending protocols and DEXs.