Fluid DEX v2 by DMH - DeFi Today Devconnect ARG

Transcript

Okay, everyone. Um, don't forget that you can scan this QR code to ask questions and we'll have some time at the end of every presentation for questions. So, up next we have one of the fastest growing apps in the Ethereum ecosystem. It will be DMH who is the CEO of Fluid and he'll be dropping some alpha as I've heard. How do I how this change? Okay.

>> Um, hi everyone. I am DH from Fluid. Um, happy to to be here. I'm first time in Argentina in Buenosirus. I like this place. Like Buenosirus has this, you know, very nice vibes, very green city. I'm enjoying being here. Um today I want to present you fluid dex v2 and why we believe it will be one of the biggest um unlocks in defy in the next years and why we believe it will be the biggest decks in entire defy starting from next year. Uh in the end we'll also have time for the questions. Um yeah and let's start and actually before I start let uh let me introduce give you a brief introduction about our team. Uh fluid is built by instad. Um if you've been in

the D5 for a while you know it's up uh is in the space since 2018. Back then there were only few applications in defy on chain uh compound maker and then there was instab uh back then we had up to $15 billion in TVL and we were building protocols on top of others I mean uh instab was a middleware for accessing protocols like let's say maker compound our spark and others over time we realized that there is very big opportunity uh to improve improve the UX for the users and we started building fluid. We started building it in 2021 and we

launched it just last year. Um within 18 months after launch we reached $6 billion in TVL. Um well if market continues behaving like it continue like it behaves now it's already less than six billion but we will we'll be back one day. Um and um yeah let's um let me explain how fluid works. It's we call it a unified liquidity layer. On top of this uh unified liquidity layer we build different protocols. It's lending protocol. It's DEX. It will be many more protocols in the future like in next years we'll have five 10 major protocols all built on top of the same liquidity

layer and every protocol contributes to the same liquidity layer and it utilize the same liquidity layer. If I'm depositing to the lending market, I'm depositing to the liquidity layer. If I'm depositing to the DEX, I'm also depositing to the liquidity layer. And when withdrawing, I'm always withdrawing from the liquidity layer. Uh but let's focus on the DEX uh for now. We launched Dexe we won uh exactly one year ago. Within first three months after the launch, DEX fluid decks became the the second biggest deck on Ethereum by fees and volumes. Uh it's very important to understand that the DEX never had any incentives, any token emissions, no LP deals or anything. In fact, we had we have caps on the decks

and all the caps are normally filled to the maximum. uh users LPS come to us organically because we have the best exper experience for them. Um and Fluid Dex is also the fastest growing DEX in the industry on Ethereum. We are the we set many records. One of them as you can see on the slide, we are the first DEX on Ethereum to reach $100 billion uh in volume. Um and what is also even more exciting to to know that Dex1 is focused only on stable coins. We do not have volatile um volatile pairs and DEX1 is responsible for more than 50% of all stable coins and correlated uh pairs volumes across Ethereum base

arbitum, polygon and all major chains. Uh so fluid deex alone does more volumes than all other dexes combined for stable coin uh pairs. And uh like Steini was mentioning a lot about stable coins, how important it is, how important are they for uh you know for onchain economy and the place for trading them is actually fluid. Uh many people don't know that we don't even have like an own UI for trading. Uh all the volumes that we get we get them through the aggregators and all major stable coins uh that we can list on fluid um they they have like we have majority of the volumes for SUSD for go from a for USDT and like for for all the major stable coins including

USDC USDT uh but Dex V1 has some limitations and um which doesn't allow it to scale beyond stable coin pairs. That's why we've been building Dex2 uh which is we believe will be the most advanced uh DEX ever existed and we are launching Dex2. Dex V2 um will have all the most vital things that any AMM any modern AMM has such as uh hooks, flash accounting, onchain dynamic fees, onchain limit orders that uh earn trading uh lending APR while waiting for be filled and um it will

also have range orders on the collateral and depth sides uh on the collateral and on the depth. as well as it will allow for crosscolorization. As you can see, I'm mentioning landing market terms when speaking about the DEX. And if you don't know much about Fluid and Dex V1, you might be confused now. But this I I will explain more um during my presentation how our landing market and Dex how they uh work together and how they make each other better. Uh also Dex V2 will be an open framework. uh it will support any existing or any future MM which will be built on chain and it will be an everscaling uh DEX.

Um liquidity providers on fluid dex2 will have much more opportunities and much more flexibility starting from you can starting from that they can use the Dexlp as a collateral. They can set range orders on the uh on the DEX pool and they are earning trading and lending fees while they can also borrow again this LP tokens. uh other innovation that users actually you know smart cloud on smart app it's already been existed in dex v1 but we now introduce range orders for uh for both of them and um another

option that users have is to have normal collateral borrow smart depth and become a liquidity provider so how it works when you when the user is borrowing smart dep he's not borrowing an LP token He's not borrowing some rep tokens. He has normal lending borrowing market experience where he borrows tokens. They he has the user has them in his wallet. He can swap them off ramp leverage. It's it's in his wallet and he's paying borrowing fees for for borrowing tokens. But the underlying depth will be used as a trading liquidity and the user will be earning trading fees on his depth and trading fees are reducing his borrowing

costs and in some cases trading fees can be much higher than the borrowing costs and in that moment uh borrowers will be paid to borrow on the de on the decks. Um how it works how the depth how the depth can be can function as liquidity if there is no TVL the way it works. So for example, trader wants to swap USDT into USDC. He the trader will repay one part of the debt and then borrow another part of the debt on behalf of the user who is borrowing on the lending market. So in this case he will repay um 100 of USDT depth and borrow 100 USDC on behalf of the user. So the composition of the

depth of the user has changed in the range that he allowed that he is comfortable with and trader got and the borrower got a trading fee which is which is reducing which is reducing his borrowing APR and he's earning trading fees on his debt. Um it's it's the biggest innovation in a while in my opinion and the best example of this is our UC UC Dex pool. It has more than $100 million of DEX liquidity and has zero dollars in TVL. All liquidity is created out of depth from the lending market. This is how our lending market is powering our decks. And our USD pool is the biggest DEX pool by volumes on Ethereum. It also has more than 50% of

market share, more than everyone else combined. And the uh the cost of this liquidity is zero. I mean if you want to have DEX liquidity on any existing deck someone has to come and put like insert money put TVL on the DEX on fluid we unlock capital. So we helped users to uh make the assets liquid while they also provide uh liquidity on the DEX and they benefit from it because now their borrowing costs are lower since they're getting trading fees. Um, next feature that users will be able to have on the DEX is the range orders on smart collateral on smart depite.

Again, because both smart collateral and smart deping as a DEX liquidity, users can generate up to 30 $40 of DEX liquidity per $1 in TVL. That means that you deposit $1 in TV, $1 and you earn trading fees on $40. So, this is 40 times more capital efficient than anywhere else. And this is uh like stake ETH for example uh or some other related pairs like CBBC, REB BTC. We also have the biggest market share for this assets because creating you know create uh $80 million of liquidity requires only $2 million in TVL while other DEX just have to to find this TVL and often they have to

incentivize it or find ways to get it. um for users coming themselves because it just becomes very profitable because they earn 40 times more fees than anywhere else and one of my most uh loved innovation is crosserization of the decks. So current Dex V1 allows you to have one collateral, one debt. With Dex V2, users will be able to bundle up the collateral as many collaterals as they want. And it can be range orders like different smart collaterals and normal uh collateral assets. So for example, EU, VBTC, red BTC, USDT, and SUSD all bundled up as

one collateral. And you yeah like you select your range orders like it's it's your Dex liquidity and then on the DEP side you can have you can bundle up any kind of depth which is available on the platform like for example USDT UDC smart dep and then you're borrowing normal ETH um this opens up in um strategies and opportunities for peace uh the existing ones will become much more efficient and it they will be able to create something new that they that didn't exist before.

Uh because traders will be I mean lenders, borrowers, they will be basically able to market make with their depth. So they unlock the capital and they earn the trading fees. Um traditional approach how sophisticated LPS work now they have one lakh of their position let's say on on on the DEX and they hedge their exposure on some different venue. It's often uh pers or options protocols sometimes lending markets. This means that they have to split the capital which is uh as you understand not not very capital efficient. Uh they have higher costs.

They have more complex management across multiple platforms. With fluid you can now have your DEXLP like EODC DEXLP. You borrow ETH against it. You you sell it, you short it. you now neutralize your exposure to ETH which is very handy these days. Uh so you neutralize your exposure to ETH and then you rebalance your strategy to keep it neutral and you don't have to split your capital across several venues. Everything is on chain. You don't go to centralized venues. It's much more capital efficient and you have lower costs and yeah as I mentioned you just market make with your depth. So like this hedging options like the most simple one which we expect a lot of people will start using right away and

this more complicated strategies it will take time for people to come up with the most profitable strategies and I think that this is a very big opportunity because dexes now generate more than $3 billion dollar of fees per year. If we compare it to something like Athena basis trade they generate around 300 million 400 million fees a year with approximately same TVL. So we will provide tools to the you to any users to any LPS or to any builders who want to to create the strategies that are open for everyone. We'll yeah we'll provide the most you know sophisticated and most advanced tools to build their trading strategy uh

strategies which will be like you know Athena unlocked billions of capital uh trading and we can see that there is a very big demand for onchain trading strategies we can we have seen it with hyperl with Jupiter JLP and many others so there is there is a demand for this yield and people are ready to get to take extra risks for this extra rewards and we I believe that Dex2 will be able to unlock this tokenized spot trading strategies uh on chain. Um so when does it go live? Dex2 is actually live which is not announced yet. We deployed it for testings and integration purposes. Now we're working

with every aggregator like Kyber Swap, one in OKX, ZeroX, uh, Velora, everyone uh to start integrating the DEX and we expect we will publicly launch the DEX in the next 10 days. Uh, the DEX will initially go live uh on Ethereum and as we get more integrations uh and ready to scale DEX further, we will launch it on other chains approximately in January. Um in this months we'll be working on more integrations on more internal external hooks on more strategies for the users.

Uh we expect that uh DEX will be working in full scale we'll start getting volumes in three four months from now and yeah like starting from Q1 Q2 next year it will be already the biggest decks by volumes across all chains combined in defy. Um if you have any questions, if you have uh if you're a active builder, active LP or you have any questions, please feel free to reach out and um yeah, it was a pleasure speaking in front of you. Thank you for your time and um yeah, it's it's very important. I think it's very important, you know, period in DeFi industry. Dex V1 already showed what

it's capable of of being basically the most important place for stable coins. Now we are building the most important most most important venue for volatile pairs on on chain. Thank you. Thank you. bold statements about Q1, Q2, Fluid DEX V2 being the largest decks already. I'm sure we could make your prediction marketable on that. That would be fun. Uh so thanks a lot for the presentation. There are some questions from the audience. How exactly will fluid v2 make lping in volatile assets more viable than in fluid v1?

>> Yeah. So it's what's important to understand about the dexes uh with dex1 like limitations that we had that users couldn't select their own trading all own ranges for example basically it means that it's a trading strategy which we say can be profitable or unprofitable it's very easy to make them profitable for stable coins but for volatile pairs you need much more much more active management and we can see that in defy uh onchain there is very big demand for for being on dexes you can see I mean let's say like unis swoft has $5 billion in field generates billions in trading fees so there is a clear demand for trading and having this uh venue with

dex2 we give the tools to the traders to the sorry to the lps to come and create their strategies and whatever they were able to have like whatever strategies they had before they will have them five tens five to 10 times better on dex v2 Plus they will have much more tools that have never existed in thread fire before that they can come and utilize explore on on dex2. I I hope it answers the question. >> Cool. Thank you. Um and then finally uh Stani mentioned before that there are a lot of teams who have great technical innovations and you clearly show them here but that's not the only part. There was also a lot of actually getting the

liquidity. And so one question from the audience is how did you grow fluidex v1 so quickly? Yeah. So again in our case it's purely tech again no incentives. We have very like low like not so much marketing efforts especially back then. Uh but the it's I mean it's economy it's defy it's finance. It's not charity. People don't come to you because you know you are building something cool. They come to you because they have opportunity to earn and we provided them the best opportunities to earn and they came to us. We never ask them like we we don't know our LPS unfortunately.

So if you if you're here please let me know. U just providing them the best tools and they will find the way how to utilize it. That's that's what we do. >> Okay. Awesome. That sounds great. Thank you very much. And let's give one more round of applause please. >> Thank you. Thank you everyone.