FluidityPrice

(FLY)

Fluidity is a financial technology company and a yield-generating protocol that rewards users for actively using their cryptocurrencies. Unlike traditional DeFi protocols that primarily reward holding assets, Fluidity incentivizes transactions and utility. It aims to increase engagement within the digital asset ecosystem by distributing rewards during transfers of its "Fluid Assets". The project addresses the problem of stagnant assets in DeFi by promoting active participation and creating a "money designed to be moved" concept.

Users deposit standard tokens (e.g., USDC) into the Fluidity protocol to mint corresponding Fluid Assets (e.g., ƒUSDC), which are 1-to-1 wrapped assets. The deposited tokens are then lent out through decentralized finance protocols, generating yield. This yield funds a reward pool, from which users receive random rewards when they send or receive Fluid Assets. Notably, 80% of the reward goes to the sender, and 20% to the receiver, encouraging active usage.

FLY is the native governance token of the Fluidity protocol. Its primary use cases include staking for rewards and exposure to the Superposition Layer-3, contributing to Cumulative Surfer Points. Holders also gain governance power, allowing them to influence key protocol parameters like whitelisting new protocols or introducing new Fluid Assets. Additionally, FLY enables utility mining through gauges, steering incentives, and can be used for payments or trading.

Fluid Assets (e.g., ƒUSDC) are 1-to-1 wrapped versions of standard tokens that enable users to earn rewards simply by using them in transactions. These assets gain yield through utility, meaning the more they are used for sending or receiving, the more potential yield can be received over time. They represent the core mechanism for distributing rewards for active participation.

Fluidity has launched its governance token, $FLY, and conducted multiple airdrop seasons to engage its community. The project secured grants from organizations like the Arbitrum Foundation and the Sui Foundation, aiding its expansion. Recent developments include Fluidity 2.0, focusing on enhanced governance, utility mining, and upgrading fUSDC to be yield-bearing for both holding and transacting. Fluidity is also developing the Superposition Layer-3, a blockchain designed to reward users for its usage.

Fluidity generates revenue through various fees, including interchange, account, card, bridge, and custodial-solution fees. It also earns a margin from the spread between interest generated on deposited assets and interest paid to users. Furthermore, Fluidity operates a cashback program in partnership with entities like Request Finance, rewarding users for crypto payments and merchants for accepting them. The yield from lending deposited stablecoins funds these cashback rewards.