The current model for decentralized finance rewards users for holding onto their cryptocurrencies. However, that is set to change with Fluidity Money, which will reward users for spending their Crypto. This could help to increase the adoption of cryptocurrency as a form of payment.
We will break down the article into the following points to better understand this protocol:
➖Overview
➖How it works
➖ Team
➖ Fluid token
OVERVIEW
Fluidity is a project that rewards people for using their crypto assets. People can be rewarded for both holding and spending their cryptocurrencies. Fluidity is currently built on Ethereum and Solana, but the team plans to extend the project to other chains in the future.
HOW IT WORKS
With Fluidity people can swap their stables for fluid assets (fAssets), which are wrapped standard (ERC-20, sol) tokens that represent an underlying principal token. The yields are accrued by lending the principal assets to money markets like @compoundfinance @solendprotocol and @AaveAave. The rewards are then distributed to the reward pool, accessible solely to those that utilize their Fluid Assets. The distribution of rewards is done through the Transfer Reward Function (TRF).
TEAM
Fluidity is a team of developers that is lead by @shahmeerx. They have 10–12 members on their team.
FLUID TOKEN
The governance token for Fluidity will allow holders to get better dividends when they trade with assets that can move around easily. The token will also be used for other things, like helping to start up and pay for protocols, and giving people a chance to earn more rewards by participating in the network. The Optimistic Solution is a way to stop people from spamming the system by making them pay more in fees than they would get in rewards.
In summary, we are facing a protocol that in appearance may be similar to @PoolTogether but that in the background has much more than a mechanic of simply ‘’deposit and wait to see if there is luck with the lottery’’.
Fluidity money is creating a protocol that encourages users to actively participate in order to maximize the chances of winning._