Fluid on Supersmooth (maximum capital efficiency lending)

Fluid is the most architecturally novel of the six protocols Supersmooth integrates. Fluid is a unified Liquidity Layer where lending, vaults, and a built-in decentralized exchange share the same capital. That architecture enables the highest LTVs in DeFi lending, up to roughly 95%, with among the smallest liquidation penalties. On Supersmooth, Fluid supports three of four automations and is the most efficient venue for correlated-pair loops.

Overview

Fluid lending, vaults, and the Fluid DEX share a single capital pool. Collateral and debt can double as trading liquidity through smart collateral and smart debt. Supersmooth integrates Fluid for Borrow, Multiply, and Yield Loop positions on Ethereum Mainnet, Base, and Arbitrum. Fluid’s high capital efficiency comes with structurally thin buffers, so position management and automation discipline matter more than on other venues.

Attribute	Value
Networks	Ethereum Mainnet, Base, Arbitrum
Supersmooth automations supported	Stop Loss, Auto Sell, Auto Take Profit
Liquidity model	Unified Liquidity Layer (lending + DEX + vaults)
Liquidation style	Variable; among the smallest penalties in DeFi
Governance	Instadapp DAO

Origin and timeline

The Instadapp team, DeFi middleware pioneers since 2018, built Fluid and launched it in early 2024, with the ecosystem subsequently rebranding around Fluid. The Fluid DEX, where collateral and debt can double as trading liquidity through smart collateral and smart debt, rapidly became one of the highest-volume decentralized exchanges on Ethereum.

Design tradeoffs

Capital efficiency first: Fluid maximum LTVs of roughly 95% and liquidation penalties on the scale of roughly 0.1% make Fluid the most efficient venue for correlated-pair loops, and also the least forgiving of inattention, because buffers are structurally thin.
Auto-expanding limits: Fluid withdrawal and borrow limits grow dynamically. A very large withdrawal may need to wait hours for the limit to expand, even when total liquidity exists. Supersmooth reads live Fluid limits and caps user inputs accordingly. This is a Fluid design property, not an outage.