Fluidity announces $1.3 Million Seed Round led by Multicoin Capital
Fluidity is excited to announce that we have raised $1.3 million in a seed round led by Multicoin Capital, with participation from Circle Ventures, Solana Ventures, Lemniscap, NGC Ventures, Skyvision Capital, Bitscale, Koji Capital, Meld Ventures, Grug Capital, ZachXBT, DCF GOD, Eden Au (The Block), Igor Igamberdiev (The Block), credit, BigDSenpai, MrBlock and ivangbi (Gearbox DAO). The funds will be utilized for the upcoming mainnet launch, scheduled for November.
We have previously received over $100k in development grants, from protocols such as Solana, Polygon, Compound, Lido and Aave.
A brief intro to Fluidity
Fluidity aims to solve the utility problem in DeFi by introducing a novel incentive mechanism that rewards users for on-chain transactions. Users can wrap stablecoins with Fluidity for which they will receive the fluid counterpart of that stablecoin. For example, this can be USDC, which in turn becomes fUSDC. This works with multiple stablecoins, such as DAI, USDT and Frax. The yield, which gets distributed through transactions, is sourced from lending out the underlying assets on money markets. If USDC is wrapped, fUSDC is generated and the principal will be lent out.
The yield for transacting fUSDC is distributed in multiple tiers, from a couple of cents occurring every other transaction to potentially millions of dollars. The yield is distributed completely randomly,such that even small transactions stand the chance to earn the highest tier rewards. To promote the idea of utility from both the perspective of the sender and receiver, the yield on a winning transaction is split 80%-20% respectively.
For example, if you send fUSDC from one address to another or perform a swap on the fUSDC/USDC pool, there’s a 40–70% chance that you will receive a reward paid out in fUSDC. If the reward is $1, $0.8 will go to the sender and $0.2 will go to the receiver of the transaction. The rewards are instant, there are no hidden or extra fees, and there’s no special software required. You will receive the yield straight in your wallet. Fluidity is spend-to-earn, gamified.
There are many reasons why a system like this hasn’t been successfully executed before. The most prominent one is the risk of malicious actors draining rewards through Sybil attacks. This is where Fluidity’s Transfer Reward Function (TRF) comes into play. It is able to dynamically calculate the yield amount and the frequency of its payouts by taking into account underlying on-chain variables such as platform fees, gas fees, volume and a range of other values. It does this every block, so that payouts can happen the block after determining which transactions are eligible for yield.
The TRF mitigates risk of malicious actors by leveraging the gas and platform fees, making Sybil attacks always more expensive than the expected yield over time. This removes the financial incentive that would otherwise make it an easy target.
The road ahead
After launch, we plan to roll out other features such as Utility Mining and our governance mechanisms. We will continue to add new stable pairs. In building out the incentive layer, we will also launch on other chains, and set up more partnerships with established protocols to participate in Utility Mining.
Exciting times lie ahead, and we wish to build the protocol together with the community. We encourage everyone to reach out regarding partnership opportunities, questions or other feedback.
- Website: https://fluidity.money/
- Docs: https://docs.fluidity.money
- Discord: https://discord.gg/HED9BsQm2p
- Telegram: https://t.me/fluiditymoney
- Twitter: https://twitter.com/fluiditymoney
- Reach out to us at contact@fluidity.money
