Today in DeFi - Sui's First Outage, MetaMask Gasless Swaps Live, Magic Eden Launches Rune Swaps, Intro to Fluid Dex, Premium Preview: Intro to Fluid Dex, and more..
Launches π
Magic Eden launches Rune Swaps Beta with onchain orderbook and full mempool protection. BTC-to-Rune swaps are live, with Rune-to-BTC swaps rolling out soon.
Mode launches AI Agent App Store, enabling onchain AI agents for DeFi strategies. Developers can list agents as Mode scales AI-driven blockspace use.
Coinshift launches csUSDL, an RWA-backed Liquid Lending Token offering yield and security. Built on Safe, it supports treasury optimization for individuals and institutions.
Fluid Protocol beta launches on Fuel Network, introducing $USDF as its first native stablecoin. Users can borrow $USDF interest-free, earn $FPT rewards as Stability Providers, and stake $FPT for additional rewards. Retroactive Fuel Points can be earned by depositing ETH-based assets or providing liquidity for $USDF and $FPT.
Solayer launches Savings Account for sUSD holders, offering staking, earning, and milestone-based rewards. Phase 1 access is open to sUSD holders in the Raydium sUSD-USDC pool or those with referrals. Eligibility runs Nov 18β25, with account claiming available Nov 25βDec 2.
Genesis DIA Staking is Coming Soon!
DIA is gearing up for Lumina's mainnet launch in Q1 2025, bringing staking and slashing mechanisms to enhance the oracle networkβs resilience.
In anticipation, theyβre thrilled to unveil their Genesis $DIA staking program, offering early adopters up to 30% APY, ahead of the mainnet release.
Today in DeFi is supported in part by DIA
Updates π°
Covalent has integrated with Unichain, an OP Stack Layer 2 platform by Uniswap Labs, to provide developers with easy access to Unichainβs onchain data.
This collaboration allows for efficient building of DeFi applications by simplifying data queries, enabling real-time insights, and providing a suite of developer tools.
Today in DeFi is supported by Covalent
MetaMask introduces token swaps without requiring ETH for gas, available now on the browser extension. Mobile support coming soon.
Symbiotic has expanded its collateral options by adding $SWELL and increasing caps for $sUSDe, $stETH, $LBTC, and $mETH.
Aave adds rsETH to its v3 Ethereum market for supply and borrowing. Depositors earn Kelp miles and EigenLayer points.
Issues π¨
Sui Network faced its first outage due to a congestion control bug. A fix was deployed, restoring activity within 2.5 hours.
Upcoming β³
Sonic Labs partners with PaintSwap to launch an NFT marketplace for trading shares of the $130M S token airdrop. The platform functions as a futures market for speculating on S token value as unlocks progress.
Airdrops πͺ
Morpho enables $MORPHO transfers. Ethereum $MORPHO must be wrapped via the Morpho App, while Base $MORPHO is already transferable.
mETH Protocol launches $COOK Feast (Nov 21βFeb 16), offering 200 $cmETH rewards for $COOK locks on Mantle. Rewards scale with lock duration, calculated via daily snapshots, and are claimable post-event. $cmETH supports yields across multiple protocols.
Sky Ecosystem offers early USDS users on Solana over 500,000 USDS in weekly rewards across DeFi protocols like Kamino Finance, Save Finance, Drift Protocol, Wormhole, and Jito.
Farms π§π»βπΎ
Deposit cbBTC and borrow USDC on Base or Ethereum mainnet to earn your share of $150,000 in incentives through the Merit Program from ACI. These incentives will be distributed over three months. For more details, click here.
Today in DeFi is supported by ACI
For sponsorships or news tips, reach us at: support@todayindefi.com
Premium Preview: Intro to Fluid Dex
Fluid is an innovative DeFi protocol developed by the Instadapp team, designed to simplify and consolidate the decentralized lending space. It addresses liquidity fragmentation through its unique Liquidity Layer, which enhances limit management and supports various interest rate models, ensuring seamless compatibility with other DeFi platforms.
Central to Fluid is Fluid DEX, a platform that combines the features of decentralized exchanges (DEXs) and money markets. This integrated approach allows users to lend, borrow, and trade effortlessly, providing a unified experience that optimizes capital efficiency across the ecosystem.
Fluid DEX: How It Works
Fluid offers an innovative solution to a key challenge in DeFi: liquidity fragmentation. At its core is the Liquidity Layer, which automates liquidity management and adjusts to different interest rate models.
A standout element of Fluid is Fluid DEX, which creatively blends the features of a decentralized exchange (DEX) with lending markets. Letβs break down how it works:
Smart Collateral: Instead of limiting users to single, yield-earning assets, Fluid gives the option to use liquidity pool (LP) assets, such as ETH/wstETH pairs, as collateral. This approach is a win-win: users benefit from both LP fees and lending interest, which helps lower borrowing costs while also unlocking additional liquidity.
Smart Debt: When you borrow from from the smart debt pools, you will also be earning LP fees and therefore with lower borrowing cost. For example, when user A borrows 100 USDC as the smart debt in the USDC-USDT pool on Fluid DEX with, say, 50:50 ratio, user A essentially borrows 50 USDC and 50 USDT from the lenders from Fluid Vaults and swaps the 50 USDT for 50 USDC through Fluid DEX, which means user A owes owes Fluid Vaults 50 USDC and 50 USDT. If now user B wants to swap 50 USDC for 50 USDT through Fluid DEX, user Aβs smart debt will be used as the liquidity. User Bβs 50 USDC will be used to pay off user Aβs USDC debt, and user A will borrow additional 50 USDT from Fluid Vault and send to user B in return. In the end, user B walks away with 50 USDT, and user A owes Fluid Vaults 100 USDT.
How Smart Collateral and Smart Debt Work Together
Fluidβs mechanisms, Smart Collateral and Smart Debt, work together to optimize liquidity and efficiency in the DeFi ecosystem. Hereβs a breakdown of how it functions:
Liquidity Provision
Imagine two users, A and B, contributing liquidity to USDT-USDC pool
A deposits 100 USDT.
B deposits 100 USDC.
Together they provide around $200 in liquidity in the form of smart collateral, earning LP fee from Fluid DEX on top of lending APYs from Fluid Vaults
Borrowing
A borrower, C, needs to borrow from Fluid Vaults as the smart debt in the Fluid DEX pool
C borrows 50 USDC from the Fluid Vaults
The borrowing contributes $50 in liquidity in the form of smart debt and helps C to lower the borrowing cost with extra LP fee.
Leverage Explained
Fluidβs design allows for maximized capital efficiency of collateral through leveraging:
Example: Collateralizing $100 into the USDC-USDT (Smart Collateral) / USDC-USDT (Smart Debt) pool with a 90% loan-to-value (LTV) ratio enables up to 10x leverage ( $1 / (1-90%) = 10 ). After looping, this results in:
$1000 USDC-USDT as Smart Collateral
$900 USDC-USDT as Smart Debt
A total of 1900 $USDC-USDT effective liquidity provided to the USDC-USDT pool on Fluid DEX
Earning LP fees on both Smart Collateral and Smart Debt
Security
β Fluid is audited by StateMind and MixBytes
The audit does not guarantee any hacks. Please do not invest with more than you can afford to lose.
Benefits of Fluid
π Exceptional Capital Efficiency: Fluidβs Smart Collateral and Smart Debt mechanisms maximize the use of deposited funds, reducing borrowing costs and enhancing capital efficiency.
π Earning Potential with Productive Debt: Borrowed assets earn trading fees on Fluid DEX, which can offset borrowing costs or even generate additional income for users.
π Automated Risk Management: Fluid dynamically adjusts borrowing limits with automated ceilings, proactively protecting users from sudden market shifts.
π Unified Trading and Lending: By combining DEX and lending functionalities, Fluid ensures abundant liquidity and improved capital efficiency for both traders and borrowers.
Weaknesses of Fluid
β οΈ Steep Learning Curve: Advanced features like Smart Collateral and Smart Debt can be intimidating for beginners, requiring educational support to understand and maximize their benefits.
β οΈ Dependence on Protocol Security: Although Fluid has risk isolation mechanisms, vulnerabilities in external protocols could still affect users if exploited.
β οΈ Reliance on Active Trading Volume: The effectiveness of earning trading fees from borrowed assets depends on high trading activity. A drop in volume could reduce income potential from Productive Debt.
β οΈ Limited Early Liquidity: Automated Ceilings may restrict initial borrowing and lending activity, especially for smaller projects, potentially slowing Fluidβs adoption.
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Disclaimer: Projects or tokens mentioned in this newsletter are often experimental or unaudited. Do your own diligence before using or buying anything mentioned.