Over the years, EVM chains have been instrumental in the development of the DeFi ecosystem. These innovative blockchain networks replicate Ethereum mainnet functionality, offering users and developers a recognizable environment for interaction and smart contract deployment. There are different kinds of EVM chains, each with its own functionality and advantages. However, the fragmentation and inefficiency of liquidity across EVM chains have been one of the daunting issues surrounding decentralized applications (dApps). Even with the myriad of liquidity aggregation protocols emerging, developers are forced to integrate with each of these protocols individually, which, unfortunately, prompts most to align with just a single protocol. Today, a new player in the ecosystem is set to transform how we interact with these protocols.
Fluid3 is a liquidity layer for EVM chains. Fluid3 proposes a solution that integrates multiple liquidity aggregation protocols into a single, accessible liquidity layer. This layer, available through a simple API, streamlines the process and enables developers to harness the best-suited protocol for each transaction, optimizing liquidity and fostering efficiency.
Routing and batching
Fluid3’s liquidity layer incorporates two pivotal functions that enhance decentralized finance (DeFi) operations. (1) The layer serves as an intelligent routing mechanism, guiding transactions through the most effective liquidity aggregation protocol to optimize output. This means that each transaction, instead of being tied to a single protocol, can leverage the benefits of the optimal protocol as determined by a set of metrics, which could include factors such as liquidity depth, slippage, gas fees, and more. (2) The layer also introduces an innovative mechanism for batching transactions. This batching mechanism intends to dramatically lower the gas prices that are frequently a big barrier in the DeFi sector, whether it be for large transactions that may benefit from being spread across different protocols or for regular transactions that might be grouped together.
Fluid3 is strategically poised to cater to a diverse range of applications within the decentralized world. It offers distinct advantages across various use cases:
DeFi Protocols: Fluid3 offers a liquidity layer connecting with DeFi protocols, enhancing trades by smartly routing transactions using factors such as liquidity depth and gas fees. This optimizes trading efficiency, potentially leading to improved prices and lower costs for DeFi protocols through aggregated liquidity utilization.
Web3 and DApps: Fluid3 offers a unified API that simplifies integration processes. Instead of dealing with multiple protocols separately, developers can utilize this unified API, reducing complexity and potentially enhancing cost efficiency. Users can enjoy smoother interactions with different DeFi protocols.
DEX and DEX aggregators: Fluid3 dynamically directs trades on DEX and DEX aggregators to suitable protocols aiming to enhance price execution and minimize problems like slippage and excessive gas fees. Its batching mechanism could also lower transaction costs in specific situations.
NFT Trading: Fluid3’s liquidity layer facilitates NFT transactions utilizing a range of cryptocurrencies. The platform does not restrict users to certain currencies, intending to provide flexibility in NFT purchases and transactions.
The introduction of Fluid3 represents a watershed event in the evolution of DeFi. Fluid3 provides developers and end users with a comprehensive, efficient, and adaptive liquidity aggregation solution by eliminating the liquidity fragmentation plaguing EVM chains. Fluid3 stands as a beacon of innovation, propelling the industry forward and empowering the realization of DeFi’s true potential.