# Fluid Protocol: Liquidity Layer, Vaults and DEX

> Fluid protocol by chain: liquidity layer supply and borrow rates, vault loans and liquidations, smart collateral and smart debt pools, with protocol revenue.

Markdown copy of https://voltfincrypto.com/apps/fluid-protocol-lending-dex

**Question:** What do Fluid's lenders earn and its borrowers pay, and how much of their funds also earn DEX fees?

- Kind: Dashboard in Voltfin Vantage
- Topic: [DeFi](https://voltfincrypto.com/topics/defi)
- Chains: Multi-chain, Ethereum, Arbitrum, Base, Polygon, Plasma, Solana
- Status: Planned. The data is not published yet, so this page states no figure; each figure will open its receipt when it is.

Fluid puts all of its products on one shared liquidity layer. Lenders supply to the layer through fTokens and borrowers draw from it through vaults, while the DEX trades against the same balances, so each asset's supply and borrow rates are set once, for the whole protocol, by its utilization. This dashboard reads that layer and every product built on it, chain by chain.

Fluid's vaults lend at high loan-to-value and liquidate in ticks: positions are grouped by their ratio of debt to collateral, and a liquidation works through a tick at a time with a small penalty instead of closing each loan on its own. Smart collateral lets a vault's collateral double as DEX liquidity, and smart debt turns a borrower's debt into a DEX position, so the same funds earn swap fees while they back or make up a loan.

Withdrawal and borrow limits on the liquidity layer expand gradually rather than all at once, which slows how fast funds can leave in a crisis. Revenue is what borrowers pay above what lenders earn plus DEX fees; the FLUID purchases funded from it are listed with their transactions. Jupiter Lend on Solana is built on Fluid's design and is shown as its own line.

## Blueprint

### Liquidity layer

Supply, borrow, rates and limits per token across Fluid.

- **Supplied** (USD): Assets supplied to the liquidity layer on the selected chains, valued at oracle prices.
- **Borrowed** (USD): Assets borrowed from the liquidity layer by vaults and DEX pools, valued the same way.
- **Supply APY** (%): The supply APY of the selected token at the liquidity layer, as fToken holders earn it.
- **Borrow APY** (%): The borrow APY of the selected token at the liquidity layer, before vault-level fees.
- **Every token on the layer**: Each token with supplied, borrowed, utilization, supply APY, borrow APY and its current withdrawal and borrow limits against what is available.

### Vaults and DEX

Vault loans, smart collateral and smart debt, liquidations, DEX volume and revenue.

- **Smart collateral and debt share** (%): The share of vault collateral and debt held as smart collateral or smart debt in DEX pools.
- **Revenue, 30 days** (USD): Borrow interest minus supply interest at the liquidity layer, plus DEX fees, over the last 30 days.
- **Vault debt by type** (USD): Debt by vault type: plain collateral and debt, smart collateral only, smart debt only or both together.
- **DEX volume and fees by day** (USD): Fluid DEX volume by day split by pool, with the fees earned by smart collateral and smart debt positions.
- **Liquidations by day** (USD): Collateral liquidated by day and vault, with the penalty paid and each transaction.

Filters: Chain (Every chain with Fluid, or all chains); Token (Every token on the liquidity layer, such as USDC, USDT or wstETH).

## How it will be measured

- Supply, borrow, utilization and rates for each token come from the liquidity layer's resolver at day-end blocks, which reports the layer's totals, its limits and the rate curve in force.
- fToken deposits are totalAssets(), and the realized lender yield is the growth of convertToAssets for one share between two pinned blocks.
- Vault collateral and debt come from each vault's totals, with smart collateral and smart debt held as DEX shares and converted to tokens at the pool's reserves.
- Liquidations are each vault's liquidation events, with the ticks worked through, the collateral taken and the penalty, valued at the vault oracle's price.
- Revenue is the interest borrowers paid minus the interest lenders earned at the liquidity layer, plus DEX fees; buybacks are the FLUID purchases governance funded from that revenue.

## Data it needs

- `lending_markets_daily` (to build): Supply, borrow, utilization and rates per lending market (Aave, Morpho, Spark, Compound, Euler and others) at day end.
- `dex_swaps_daily` (to build): Swap counts and volume per DEX, pool and chain per day, decoded from Swap events, valued with stablecoin legs and oracle prices.
- `dex_liquidity_daily` (to build): Liquidity held by each DEX pool at day end, in tokens and valued in USD, with fee tier and pool age.
- `liquidations` (to build): Every liquidation on major lending markets and perp venues: collateral seized, debt repaid, liquidator, and the price at the time.
- `protocol_revenue_daily` (to build): Fees users paid to each protocol and the part kept by the protocol or its token holders, per protocol and day, including buybacks.
- `native_prices_daily` (to build): Reference prices of major assets read from on-chain oracle feeds (Chainlink latestRoundData) at each day's last block, with each round's update time.
- Source: Liquidity layer resolver data per token at day-end blocks: supply, borrow, rates, utilization and limits
- Source: fToken totalAssets() and convertToAssets() for lender yield
- Source: Vault resolver data per vault: collateral, debt, collateral factor, liquidation threshold and oracle
- Source: Vault liquidation and absorb events, with ticks and amounts
- Source: Fluid DEX swap events and pool reserves, including smart collateral and smart debt shares
- Source: FLUID purchase transactions funded from protocol revenue
- Source: Jupiter Lend program accounts on Solana, read separately

## Questions

### What is Fluid in DeFi?

Fluid is a DeFi protocol built by the Instadapp team that combines lending, borrowing and a DEX on one liquidity layer. Lenders deposit through fTokens and borrowers use vaults, while the DEX trades against the same pooled balances, so the products share liquidity rather than competing for it.

### What are smart collateral and smart debt?

Smart collateral is collateral deposited as a pair of tokens in a Fluid DEX pool, so it earns trading fees while it backs a loan. Smart debt is a loan held as a DEX position, so the fees earned on it reduce what the borrower owes. Both put the same funds to work twice.

### How do Fluid liquidations work?

Fluid groups vault positions into ticks by their ratio of debt to collateral. When prices move, liquidations work through the affected ticks, taking only enough of each position to bring it back below its limit, at a small penalty. That lets Fluid lend at a higher loan-to-value than markets that liquidate loan by loan.

### Why does Fluid have withdrawal limits?

The liquidity layer lets each protocol withdraw or borrow only up to a limit that grows over time. Normal use stays within it, but a sudden rush or an exploit cannot empty the layer in one block. The dashboard shows each token's limit against what is available.

### Where does Fluid revenue come from?

From the spread between borrow and supply interest at the liquidity layer, liquidation penalties and DEX fees. Governance has used part of it to buy FLUID in the market, and those purchases are listed with their transactions.

### Is Jupiter Lend part of Fluid?

Jupiter Lend is a lending market on Solana built with Fluid's liquidity-layer design. It runs as its own programs on Solana, so it is measured separately and shown beside Fluid's EVM deployments rather than inside them.

## Glossary

- **Liquidity layer**: Fluid's single contract on each chain that holds every supplied asset and sets its rates for all Fluid products.
- **fToken**: Fluid's deposit token, an ERC-4626 vault share that grows with the interest lenders earn.
- **Tick**: A band of vault positions with a similar ratio of debt to collateral, which Fluid liquidates together.

## Related apps

- [DeFi Lending Market Share: Aave, Morpho, Spark and Euler](https://voltfincrypto.com/apps/defi-lending-market-share)
- [DEX Volume by Chain and Protocol](https://voltfincrypto.com/apps/dex-volume-by-chain)
- [Euler v2 Vaults: Deposits, Loans and Liquidations](https://voltfincrypto.com/apps/euler-v2-vaults)
- [DeFi Lending Rates Table: Utilization and LTV by Market](https://voltfincrypto.com/apps/defi-lending-rates-table)
- [Crypto Token Buybacks Ranked by Amount Spent](https://voltfincrypto.com/apps/crypto-token-buybacks-ranking)
- [DeFi TVL by Chain: Total Value Locked Rankings](https://voltfincrypto.com/apps/defi-tvl-by-chain)

Build it in Voltfin Studio: https://app.voltfincrypto.com/signup?next=%2F