Fluid refers to a decentralized finance protocol that is developed by Instadapp. This is introduced to optimize capital efficiency by combining features from various leading DeFi protocols. Fluid is becoming a sensation in the DeFi world with a series of impressive advances. This ERC-20 utility represents a modern version of Fluid. This project has certain values that include efficiency, innovation, and trust & collaboration.
The project has a unified liquidity layer that maximizes capital utilization and reduces transaction costs. This can integrate different financial protocols into a single one that can adapt to market dynamics. This project can build a sustainable and transparent ecosystem, and this ecosystem empowers users and fosters community growth.
How Do Fluid Tokens Work?
Check out the working of Fluid Tokens:
- The Fluid Tokens platform allows NFT owners to list their NFTs. NFTs are locked in a contract with certain terms, such as how much ADA they want to borrow, duration, and the interest rate they are willing to pay.
- Lenders verify these loan requests, and based on certain terms and their judgments, they agree to the loan by sending ADA to the NFT owner.
- If the NFT owners burn their Fluid, this can attract lenders.
- To get the NFT back, NFT owners need to pay back the loan in one payment. If not, lenders have the right to claim the owner’s NFT. But if he doesn’t claim, the owner can do late repayment without any extra charge.
- The transaction fee is only imposed for starting the loan, and the platform fee is based on the loan amount.
- The NFT owners can vote on changes to the platform.
Key Features Of Fluid (FLUID)
The complete breakdown of the Fluid’s key features are listed below:
- Fluid tokens can draw liquidity from several DeFi protocols and allow greater flexibility and access to capital.
- The amount that can be borrowed depends on the deposited collateral.
- Sudden large withdrawals are protected with several mechanisms and maintain stability.
- Penalties correlated with the liquidation of collateral and benefiting NFT owners are minimized.
- A minimum transaction cost is provided.
How To Buy Fluid (FLUID)?
The section below discusses the step-by-step guide on how to purchase Fluid on Bitget Wallet. Check this out!
Step 1
Create an account on the Bitget Wallet app, followed by signing up for your account by providing the necessary information and verifying your identity.
Step 2
Deposit funds to the account with these methods:
- Send crypto from another wallet
- Crypto can be purchased using a credit or debit card. Make sure you have enough funds for trading.
Step 3
Go to the market section and find the Fluid (FLUID) option. The trading page can be viewed by clicking on Fluid.
Step 4
Select the trading pair and trade Fluid (FLUID) against USDT or another cryptocurrency.
Step 5
After deciding whether to place a market order or a limit order, enter the number of tokens you wish to buy or sell. Complete the order by clicking on the confirmation button.
Step 6
The trading process can be monitored in the ‘Open Orders’ section, and you can check your balance to view newly obtained Fluid.
Step 7
The Token can be transferred to another crypto wallet by navigating to the withdrawal section. The process can be done by entering the wallet address and confirming the transaction.
The Bottom Line
Fluid Tokens is an open-source Cardano DeFi protocol used by users to leverage their on-chain assets in a permissionless manner. This token allows users to unlock the value of their NFTs by lending their utility tokens to use for governance or trading. Assets are deposited to earn interest, trade seamlessly, and borrow against collateral. The token is expected to oscillate between $6,00 and $7,00 by 2025. Fluid (FLUID) is definitely the next big thing in DeFi.
