Introducing the first credit-based protocol on top of Fluid: Fluid DEX Lite 🌊

Currently, Fluid DEX is a dominant player on the market of correlated pairs, and it has significantly increased its share in the past weeks, including the most competitive USDT-USDC market. However, Fluid DEX is still missing hundreds of millions of volumes.

A large share of Ethereum swap volume comes from sandwich attacks, generating up to 200x volume per $1 in DEX liquidity. Due to their sensitivity to gas costs and Fluid’s advanced architecture, this volume bypasses Fluid.

Fluid DEX Lite Features • Most gas-efficient DEX on Ethereum: Swap logic uses ~10,000 gas (vs. ~24,000 for the current best-in-class). • Replicates Fluid DEX v1 logic: With major gas optimizations. • Singleton architecture: Supports multiple pools and the most gas-efficient routing between them. • Expected to drive $200M in daily average volume through increased small-trade routing. • Launching with only the USDT-USDC pool, new pools can be created upon governance approval.

Key benefits: • USDC-USDT pool is bootstrapped via a credit line, generating fees for the protocol instead of spending treasury for incentives. • Borrowing fees go to the Fluid Lending Market, increasing fee generation for Fluid. • Additional swap fees flow directly to the DAO treasury. • Estimated APR is up to 10%. In case the protocol takes any losses, the team will cover them from its own funds.

Fluid DEX Lite lays the foundation for introducing a credit layer on Fluid, allowing it to borrow directly from the Fluid Liquidity Layer. More DEX pools and credit-based protocols might be introduced in the future, including private credit lending, institutional, and consumer credit in the future.

Fluid DEX Lite will be launched next week upon governance approval. Read the full proposal here: