fluidity money review

There are many ways to earn yield, but all of them have the same underlying principle. You usually have to lend, stake, or lock up your tokens in some form or another.

This causes people to concentrate only on investing their tokens and not use them to make daily transfers. To achieve cryptocurrency’s goal of real-world adoption, more people have to start using their tokens for everyday activities. So, what if there was a protocol that inverted the existing concept of yield and randomly rewards users for utilizing their money? 

Enter Fluidity Money. Now when you swap or transact with your tokens, both you and the receiver stand a chance to win possibly life-changing rewards. In this article, you will discover more about this project and how you can start using it now that they’ve launched on their mainnet.

What is Fluidity Money?

Currently, when you make a stablecoin transfer like USDC to pay for a transaction, you have to pay a fee depending on the blockchain you use. Fluidity Money wants to change this concept by operating as an incentive layer that rewards utility.

To achieve this, Fluidity issues wrapped tokens linked 1:1 to their original assets. In other words, if you deposit 100 USDC in this protocol, you will receive 100 fUSDC. fUSDC or ‘fluid assets’ is a wrapped version of USDC that will give you a chance to earn from the reward pool for purchasing NFTs, investing it in a DeFi protocol, playing your favorite P2E game, or any other on-chain interaction. Every transaction lands you a chance to earn dividends.

The rewards can range anywhere from 1 cent to $1 million! Some important points to keep in mind:

  • You can at any point in time, redeem your principle with your fluid assets.
  • Around 40-70% of your transaction may be yield-bearing.
  • The rewards will be split between the fluid asset sender (who receives 80% of the reward) and the receiver (who gets 20%).
  • There is zero loss and zero-fees to receive rewards other than blockchain network fees.
How Does Fluidity Money Work?

Imagine that you want to deposit 500 DAI to send to someone. You can deposit your token on Fluidity Money first. Here is what happens after you do this:

  • With a click of a few buttons on Fluidity’s website – deposit your token on Fluidity, which will return the wrapped version of the asset – 500 fDAI. Literally, that’s it. You can continue to send your token to wherever you want it to go.
  • You could be rewarded for the transaction of moving your token.

Now, what’s happening behind the scenes? Let’s take a look:

  • Fluidity deposits your 500 DAI into a lending platform (Example: Compound). The profits obtained by doing so are placed in a liquidity pool, which is distributed to users through the Transfer Reward Function (TRF).
  • Fluidity mints 500 fDAI from your 500 DAI.
  • The protocol transfers 500 fDAI to you.

The benefit of doing this is you are now eligible for the rewards. Fluidity Money splits the rewards with 80% for the sender and 20% for the receiver.

But thanks to Fluidity’s user-friendly tech, you don’t see any of that. You press a button, wrap, send, and earn! You don’t need to claim your dividends, your wallet automatically receives them.

Benefits Of Using Fluidity Money

Fluidity Money is a fully collateralized protocol where assets can be redeemed anytime. Also, there are other benefits:

  1. Avoid Network Spam Attacks: Fluidity’s optimistic solution model protects against spamming systems with its TRF technology. Spammers have higher fees than rewards. More info here.

2. Sustainable Model: The utility mining mechanism used by Fluidity Money encourages protocol exploration by rewarding you with governance tokens. Also, the Fluidity DAO will control the token’s emission when it launches. The DAO will decide which protocols receive more tokens. More info here.

Key Investors & Backers

When Solana invests in one of its ecosystem projects like they did here with Fluidity Money, that’s a sign of huge belief in the potential of the project. Other leaders like MakerDAO and crypto VC Multicoin Capital are important investors and advisors to Fluidity.

Roadmap

On February 12th, Fluidity launched its beta version on Ethereum’s testnet and Solana’s devnet. Around 50,000 users have already transacted and swapped Fluidity’s fluid assets with the beta. Fluidity Money has also raised $1.3 million in a seed round led by Multicoin Capital.

The co-founder and CEO of Fluidity Shahmeer Chaudhry said: “The idea is to start with different DEXs like Uniswap, Saber, and Serum. The simple point is that people trade hundreds of millions of crypto every day. The plan is to move to NFT marketplaces, which have the highest crypto volumes; every time a user buys or trades NFTs, why not maximize chances of earning a lot of money without extra charges.”

Also, it’s important to mention that its mainnet will launch soon with the successful testnet and devnet launches to ensure a robust application as we mentioned earlier.

Conclusion

Nowadays, the crypto industry is experiencing hypergrowth, with a huge number of new innovations taking place almost every day. However, they are not focusing on incentivizing the usage of tokens or rewarding engaged users and ensuring fairness in distribution. Fluidity is looking to change all that. They are making it easy for users by giving rewards for simply using its protocol. Now we have the incentive to use your crypto instead of just saving it. Experience Fluidity Money yourself. Find out more on the website or join the Fluidity Money community on Twitter, Discord or Telegram.

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