Fluidity Money: early days and today
After a 2022 of quiet building, Fluidity Money launched on Ethereum mainnet in December 2022 and moved to Arbitrum in March 2023. The dApp also operates in Solana and is soon to deploy in Sui.
But what is Fluidity Money?
Fluidity rewards users for actually using their cryptocurrency. That includes anything from simply sending a transaction, to performing swaps and buying NFTs. Fluidity works by wrapping stablecoins into Fluid Assets (i.e. fUSDC) and lending out the underlying assets on money markets (Aave) to generate yield. This yield is then pooled together into a single reward pool.
When Fluid Assets are simply used (send, receive, swap, trade, etc), users stand a chance to earn randomly paid yields and “large dividends”, ranging from cents up to millions.
Since launch and to date, Fluidity transactions have boomed:
Some apps/use cases utilise Fluid Assets as a payments booster layer, bootstrapping liquidity for DEXs, a yield multiplier and a system stabiliser in Play-to-Earn gaming ecosystems and more, the possibilities are endless.
In April, Fluidity introduced their $FLY governance token and launched Fluidity 2.0 in May. If you want to know more, check out their app, fluidify your money and enter Fluidity’s incentive layer.
Superposition & Long Tail AMM
During late 2023, the team had been working behind the scenes in another exciting product: Superposition, a DeFi-native Layer-3 built on top of Arbitrum, leveraging the Nitro stack and Stylus (also dubbed as EVM+).
Superposition brings to the table a novel on-chain order book focused on steering order flow, with faster execution speeds, shared & permissionless liquidity, Account Abstraction, and zero fees, all while providing higher yields to Liquidity Providers and traders alike.
And every chain needs an AMM right? In September 2023, Fluidity Labs set out to build the first AMM with Stylus.
Long Tail is a concentrated liquidity AMM, similar to Uniswap v3, with the difference that it:
-
Pays users yield for every single trade they do
-
Saves gas due to Stylus efficiencies
-
Eliminates LP fees, while still being profitable for LPs
-
Enables ‘Utility Mining’ and new forms of token distribution, exposing traders and LPs to different token incentives.
Long Tail is the world’s first “fee-negative” AMM, with zero protocol fees. Built on Super Assets (powered by Fluid Assets), every single swap is a yield-bearing transaction.
Partnering with Labrys
As the team was focussing on delivering the core features of Long Tail, they decided to partner with Labrys to develop its frontend. When we received the designs we were both impressed by the look & feel of the app but at the same time concerned for the number of features, settings and level of detail it contained, which included very sleek animations.
From the beginning of March until mid-May, we were heads down developing dozens of pages across mobile and desktop and having thorough QA reviews after each sprint from Ivan Seara Nunes , Fluidity’s and Superposition’s Head of Product.
“I am extremely happy with the communication side of Labrys, who has been constantly making sure that the product has been delivered to the required standard set by the us. The Frontend team did a fantastic job on their attention to detail and making sure that the development web-app was as close to its Figma counterpart as possible.”
Ivan Seara Nunes, Head of Product Fluidity Money & Superposition
But not everything was smooth along the way. Given Superposition is one of the first teams building on Stylus, we struggled at times integrating the backend with deployed contracts. But the technical team, led by Alexander Baigent, was 100% supportive along the way and we were able to overcome issues and successfully deliver.
Stylus it’s a new programming environment for Arbitrum that allows developers to deploy code written in Rust, C, or C++ to Arbitrum Layer 2, opening up Layer 2 development to a huge number of developers from more traditional programming backgrounds.
As promising as it sounds, the fact that it’s been only released a couple of months ago presents a number of challenges such as lacking test infrastructure and documentation or its SDK being difficult to integrate with tooling.
What’s next?
We are terribly excited both to see the Long Tail AMM launch and continue collaborating in the Fluidity Money & Superposition ecosystem in a development partner capacity. It’s always inspiring working with web3 pioneers and who aren’t afraid to be among the firsts to innovate with bleeding edge technologies.
Looking for a Web3 development agency that can service your multi-faceted project with ease? Our developers are all 100% local and ready to help you make things happen.
Just get in touch to find out more.
