One of the most challenging concerns surrounding the Ethereum Virtual Machine (EVM) Chains is the fragmented and inefficient liquidity distribution. This pressing challenge poses a limiting potential for developers and users alike. While the growth of DeFi has brought about different liquidity protocols such as 1inch, 0x, Paraswap, Unizen, and Orion – to name a few – their isolated nature poses a significant obstacle for developers seeking to integrate with the best-suited protocol for each transaction.
Fragmentation puzzle
Because of the isolated nature of different liquidity protocols, developers are forced to align with just one protocol, which inherently leads to a suboptimal solution, given the missed opportunity to leverage the wide range of benefits that the other protocols offer. This challenge imposes various effects. For one, it compromises transaction efficiency by preventing developers from using the best available liquidity for their user’s transactions. Secondly, it causes higher gas prices and lesser output. And lastly, the existing situation hinders innovation in the DeFi sector since different liquidity sources’ full potential is still unrealized.
Introducing a liquidity layer for EVM chains: Fluid3
Fluid3 emerges as a solution to addressing the fragmentation and inefficiency of liquidity on EVM chains. Fluid3 is a liquidity layer for EVM chains. It aggregates liquidity across chains into a single API for developers to tap into. This allows developers to harness the best-suited protocol for each transaction, optimizing liquidity and fostering efficiency.
A new way to engage with DeFi protocols
Fluid3 is designed to be a robust and adaptive liquidity layer that sits on top of existing protocols. It is built to learn from every transaction, continually improving its decision-making algorithm to make sure it always chooses the optimum path for maximizing output and decreasing expenses. The result is a streamlined, economical, user-friendly method for engaging with DeFi protocols. This facilitates deeper involvement with the exciting opportunities within the DeFi space.
The DeFi landscape presents challenges and opportunities in equal measure. Fluid3 addresses the critical issue of liquidity fragmentation, aiming to make interactions in the DeFi space more seamless and efficient for both developers and end-users. Read the Fluid3 whitepaper today to learn more.
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