Fluid Tokens has garnered attention recently due to the success of their $FLDT token liquidity bootstrapping event on Minswap DEX, raising 8 million ADA.

Let's explore what Fluid Tokens is, the features the platform currently offers and plans to introduce, as well as details from the LBE event and recent project updates.

What is Fluid Tokens?

Fluid Tokens is an open-source Cardano DeFi protocol that provides users with various non-custodial financial services. Users can leverage their on-chain assets in a permissionless manner by borrowing or lending to earn APR.

The components of the Fluid Tokens protocol have been audited by two external organizations and the internal FT Labs team.

Some features of Fluid Tokens are currently operational, while others are under development for a late 2024 release. The currently active features include:

• P2P Borrowing: Users utilize tokens and NFTs as collateral for loans and request any amount of ADA or stablecoins. They can also pool multiple NFTs from a collection into a single collateral product.
  • Borrowers set the interest rate and loan term and wait for lenders. They must repay the loan and interest in a single transaction before the term ends or risk losing their collateral. Borrowers pay a 2.5% platform fee.
• P2P Lending: Lenders browse loan requests and choose to fund them. Loans are rated with Karma Scores based on past repayment performance and verified listings to prevent scams.
  • If the loan term ends without repayment, lenders can instantly claim the collateral. Lenders do not pay any fees.
• Group Lending: Lenders can create liquidity pools tied to NFT collections. They set a maximum loan limit, and any holder of these NFTs can immediately use them as collateral for a loan.
  • Other lenders can also add liquidity to these pools and earn ADA and $FLDT rewards.
• Enhanced Staking: Lenders can lend their staked ADA to earn preset APR. Borrowers use this ADA for a set number of epochs but cannot spend it. Unborrowed ADA remains staked in the lender’s chosen pool, earning staking rewards. Lenders receive immediate payments based on their lent ADA.
  • Use cases include renting staking ADA for snapshot eligibility for airdrops, increasing a pool’s block production, and boosting ISPO rewards.

Token Launch Event Raises 8 Million ADA in 9 Hours

The LBE event took place on Minswap's Launch Bowl, initially planned for 5 days. However, the first phase concluded in just 9 hours, with deposits quickly surpassing the 4 million ADA minimum target and reaching the 8 million ADA hard cap.

32.5% of the total supply was distributed, with 70% allocated through DEX liquidity pools and the remaining 30% to farmers.

This launch received widespread acclaim across the ecosystem, with high $FLDT trading volumes in the following days, dominating Cardano's trading volume.

Fluid Tokens in Catalyst Fund 11

Recently, all three proposals by Fluid Tokens in Catalyst Fund 11 were funded by community votes, including:

• ☑️ Aquarium, the first market fee protocol on Cardano, will be open source.
• ☑️ Real World Assets are coming to Cardano thanks to our strategic partnership with NMKR & IAMX.
• ☑️ Cardano will get smart contract legal compliance for RWAs.

Reward Information for ISPO Participants

In February, Fluid Tokens’ ISPO participants are expected to receive $FLDT tokens from the project. Details on how to claim tokens will be updated later.

ISPO rewards will be distributed in three installments in 2024, in February, June, and October.

Reward amounts for participating wallets can be checked at https://ispo.fluidtokens.com/rewards/.

A Bright, Multi-Chain Future for Fluid Tokens

The listed features are just the beginning for Fluid Tokens. The protocol plans to add a full suite of features, including buy now, pay later for NFTs on leading marketplaces, NFT rental capabilities, and smart contracts enabling fee payments using $FLDT tokens.

Fluid Tokens' vision extends beyond Cardano, targeting cross-chain integrations with Milkomeda, Midnight, Polygon, Arbitrum, Solana, and Cosmos. The team has partnerships aimed at bringing real-world assets (RWA) to Cardano.