Fluid
About
Fluid is a DeFi protocol built by Instadapp that unifies lending, borrowing, and DEX functionality through a shared Liquidity Layer. Users can supply assets to earn yield (Lending Protocol), borrow against collateral with high loan-to-value and low liquidation penalties (Vault Protocol), and participate in automated liquidity provision (Dex Protocol). The protocol also offers Smart Collateral and Smart Debt, enabling users to earn LP fees on their collateral or borrowed positions while still earning the base lending yield.
Where Does Yield Come From?
Fluid runs on a shared central pool called the Liquidity Layer. All of the protocol's parts — lending, borrowing, and the exchange (DEX) — draw from and feed back into this single pool.
Where the yield comes from
Suppliers earn from two sources:
- Interest paid by people who borrow through the Vault Protocol
- Swap fees generated when traders use the DEX
Lending side (supplying assets)
When you supply an asset, you get fTokens (a type of token that automatically grows in value over time). These fTokens gain value as the pool collects interest and fees. There are no fees for depositing or withdrawing your lending.
Borrowing side (the Vault)
Borrowers put up single-asset collateral (up to 95% loan-to-value) and pay interest on what they borrow. That interest flows back into the Liquidity Layer, where it's shared among all suppliers in proportion to how much each has deposited.
DEX and Smart Collateral / Smart Debt
The DEX lets people provide concentrated liquidity (a more efficient form of market-making) and earn trading fees. Through Smart Collateral and Smart Debt, vault users can choose to use their collateral — or even the assets they've borrowed — as DEX liquidity. This earns them extra LP (liquidity provider) fees on top of the base yield they're already getting.
Withdrawals
When you want to withdraw, the protocol uses an Automated Debt Ceiling — it spreads the withdrawal out over several blocks to keep things smooth and avoid sudden shocks to the pool.
Extra rewards
On top of the base yield, the protocol distributes additional in-kind rewards (for example, extra USDC or USDT for suppliers). These are handed out through a Merkle distributor and staking rewards contracts.
How the protocol earns revenue
The protocol takes a cut of DEX fees (set by a permissioned role called DexFeeAuth) and a portion of vault fees (magnifier fees). This revenue goes into a Reserve Contract, which can later be used for buybacks or other ways to add value back to the ecosystem.
Persons
Samyak Jain
Co-founder Instadapp
Georges KABBOUCHI
Lead Developer @Instadapp
Thrilok kumar
Blockchain Developer
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
PeckShield10-11-2023 |
| The PeckShield audit found 13 issues (4 high, 4 medium, 5 low) in the Fluid protocol, all of which were confirmed and addressed by the project team, resulting in a well-structured codebase with promptly remediated findings. |
StateMind30-10-2023 - 29-12-2023 |
| StateMind's audit found 3 critical and 8 high-severity issues, all of which were either fixed or acknowledged, indicating the Fluid team addressed the most severe risks before deployment. Residual acknowledged findings (primarily medium and informational) represent accepted design trade-offs or planned future improvements rather than immediate threats to protocol safety. |
MixBytes25-03-2024 - 21-06-2024 |
| The MixBytes audit found no critical or high-severity vulnerabilities in the Fluid Vault Protocol; the two medium and four low-severity findings were either fixed or acknowledged, indicating a solid security posture with residual risks around supply caps and reentrancy that were documented for future mitigation. |
Cantina11-09-2024 - 02-10-2024 |
| The audit found no critical or high-severity issues; the two medium-risk findings (TWAP oracle corruption and a division-by-zero lock) were acknowledged by the Instadapp team and are addressable via configuration updates or code fixes, indicating the Fluid DEX codebase was in a reasonably secure state at the time of review. |
MixBytes09-10-2024 - 21-10-2024 |
| The audit found no critical, high, or medium severity vulnerabilities, only three low-severity items that were acknowledged by the client; therefore the core protocol logic appears sound for deployment. |
MixBytes09-09-2025 - 10-12-2025 |
| The audit found no critical, high, or medium severity vulnerabilities; two low-severity findings were identified, one acknowledged and one fixed, indicating the audited changes to the Fluid Liquidity Layer are generally secure with only minor residual concerns. |
Statemind10-09-2025 - 14-10-2025 |
| The audit found one high-severity bug that was fixed before finalization, and four informational items acknowledged or resolved; overall the Liquidity Layer update is safe for deployment with the remediated code at the reviewed commit. |
Backers
No investor or backer information was found on the official Fluid website, documentation, GitHub organization, Instadapp website, or Instadapp blog. Fluid is built by Instadapp, but no funding rounds, amounts, or investor names are disclosed in any of these sources.
Legal
Legal form
LLC
Registration jurisdiction
Delaware, USA (registered address: 16192 Coastal Hwy, Lewes, DE 19958, United States)
Status and notes
Fluid is a protocol built and operated by InstaDApp Labs LLC (doing business as Instadapp), a Delaware limited liability company. The Terms of Service (instadapp.io/terms) are between the user and InstaDApp Labs LLC. The Privacy Policy lists the designated representative as Sowmay Jain at the same Delaware address. The Fluid protocol is referenced as a product of Instadapp on instadapp.io and in the Instadapp blog. The fluid.io domain itself does not host independent legal pages; its /terms, /privacy, /imprint, /legal, and /disclaimer all return 404. INST is the governance token for Fluid.