Why Fluid is the DeFi Project to Watch in 2025?
The project's DeFi suite is quickly gaining popularity among users, with its capital-efficient lending and trading protocols rapidly increasing in TVL and trading volume.
At the beginning of last month, the DeFi aggregator project Instadapp announced a rebrand to Fluid and an ambitious growth strategy for 2025.
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To avoid confusion - there is another protocol in the DeFi ecosystem that shares a similar name, Fluid Protocol, but operates in a different context. Fluid Protocol is an over-collateralized borrowing platform built on the Fuel Network. It introduces a stablecoin, USDF, to facilitate borrowing within the Fuel ecosystem. Despite the shared name, these two protocols are not related.
Initially, the project started as an aggregator of user interfaces across DeFi, where, on one page, you could open various lending protocols and DEXes instead of going through the hassle of connecting to multiple UIs. But then, at the beginning of last year, the project evolved and launched its own DeFi services, including lending and trading protocols.
Now, Fluid has become quite popular among users. Since February of last year, the project’s TVL grew from zero to over $1.4 billion. Currently, Fluid is a top-5 lending protocol on Ethereum, and users can lend their stables on Fluid at a pretty good 15% yield.
The project’s DEX has also quickly gained popularity; over the last 7 days, its total trading volume exceeded $720 million. Notably, Fluid was able to achieve such a staggering volume in just a few months. The DEX was launched in October of last year, and by December, it had already become the second DEX by volume after Uniswap on Ethereum.
Fluid DEX became the fastest DEX on Ethereum to reach $5 billion in lifetime volume, achieving this in 72 days.
Such growth in the popularity of Fluid comes from the way its protocol is designed. In fact, the project’s lending protocol and DEX are interconnected with each other, making the whole system very capital-efficient.
For example, users can offer their Fluid DEX liquidity pairs (such as ETH/WBTC) as collateral to borrow funds. This allows borrowers to maintain a loan while earning trading fees from their liquidity stake, which offsets their debt cost. This feature of Fluid lets users provide liquidity, earn trading fees, and obtain loans - all from one window.
After such success in 2024, the project has ambitious plans for 2025. The team will launch more DeFi protocols and expand to various L2s. They also plan to add more assets to their protocols and launch V2 of their DEX.
Interestingly, for token holders, the FLUID team promises up to a 100% buyback from the project’s revenue, while the project goal for 2025 is to reach $10 billion in market size and earn $50 million in revenue.
The new plans and success in 2024 have positively affected the token price. It grew almost 200% in the latest year, and it is probably primed for further growth if the project achieves its targets in 2025.
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