DMH 🦇🔊🌊

@0xfluid / @Instadapp | COO new tg: @iam_dmh The approach is not to limit the choice, but to provide a broader choice.

[DMH 🦇🔊🌊 @DeFi_Made_Here]

1/🧵 @instadapp launched @0xfluid - the biggest innovation in the DeFi space since Uni v2 to Uni v3 transition.

It combines concepts of the

• @Uniswap v3
• @MakerDAO vaults
• @AaveAave pool-based liquidity
• @CurveFinance LLAMMA

[DMH 🦇🔊🌊 @DeFi_Made_Here]

Fluid has one of the lowest risks according to @yearnfi, while having the highest lending rates among lending markets

[Sentora @SentoraHQ]

Weighted average stablecoin supply rates on Ethereum mainnet now span 2.58% on Aave V3 to 4.67% on Fluid Lending.

A spread above 200 bps across major venues means venue selection drives a meaningful share of realized return for onchain capital.

[DMH 🦇🔊🌊 @DeFi_Made_Here]

@andy_bumstead https://t.co/0HPBDPrDUo

[Bitwise @Bitwise]

Bitwise is continuing to dive deeper into DeFi with our first curator role on @Solana.

We’re proud to partner with @ethena, @jupiterexchange, and @0xFluid to launch this new market centered around USDe.

Capital markets are moving onchain, and we’re excited to help lead the way.

[DMH 🦇🔊🌊 @DeFi_Made_Here]

A lot of people reached out asking about paid integrations, how protocols can even compete, and what the growth perspectives are for Fluid in this case. Here are some thoughts: Paying for integrations and exclusivity is simply part of growth strategy and business development. That's completely normal. A lot of people just do not know about this and think that eg Morpho is getting all integrations by default. Morpho has a very strong backing and an excellent BD team, but they won't be able to pay for every integration forever. There is also the question of alignment between partners.

Eg the Coinbase deal reportedly cost ~7x less than the Robinhood deal, yet Coinbase accounts for more than 60% of Morpho's TVL and has been a major contributor to $morpho becoming the highest-valued lending protocol. This high valuation helped to finance the deal with Robinhood, which is a direct competitor to Coinbase. CB is well known for their negotiating skills, so it'll be interesting to see what happens when they revisit that relationship.

I also agree with what @euler_mab said about tokens. A new token can open many doors. Like Euler, we chose not to launch with a new token and instead continued with the token from the previous protocol from 2021. That decision came with limitations, but when one opportunity closes, others emerge.

That said, I think it is too early and naive to think that there is a clear winner among lending markets and I am very excited about @0xfluid future.

But how can Fluid or other lending markets navigate in this space, which has turned into enterprise sales controlled by suits? First of all, the world is pretty big. There are thousands of banks, funds, fintechs with trillions of dollars in AUM. The pie is large enough for multiple winners.

Second, Fluid has a fundamentally superior architecture, and I know that matters to sophisticated integration partners. Instead of integrating separate lending markets, DEXes, and other financial primitives, partners can integrate once and access everything through a single stack while working with one team.

On top of that, Fluid is the only protocol with equivalent deployments across EVM, Solana, and soon Sui - three different VM ecosystems. (And what if I told you there are more VMs to come?)

Powered by Fluid We have had great success with our first distribution partner - @jup_lend powered by Fluid. A $2B TVL protocol with plenty of growth ahead.

We'll be launching additional white-label deployments with traditional asset managers, exchanges, neobanks, and other partners in the near future.

We don't have the luxury of paying for every integration, but we can win partners through better technology, white-glove support, and predictable economics instead of fee switches or curator fees that can be turned on at any time.

DEX v2 - it is a shame that we keep delaying it despite announcing it a year ago, but we have it ready and we will launch it sooner rather than later.

DEXes generate roughly 16x more fees per $1 of TVL than lending markets, so this will be a major focus for us this year.

There are plenty of other things I'd love to share, but every time I do, another market-wide armageddon seems to happen, forcing us to delay or reprioritize launches.

So this time, let's just wait for the launches themselves.

Stay Fluid 🌊

[Michael Bentley @euler_mab]

I sincerely doubt the number is that high. Insane if so.

But the point about using a low float high FDV token to strike deals for exclusive integrations still stands.

People used to say to me all the time at Euler: “do more BD.”

But lack of integrations almost always was nothing to do with BD efforts. Very few people we didn’t speak to during my time there.

It almost always came down to money. “So and so are offering X millions for an exclusive integration, what can you do?”

I assume most of those types of deals were done with tokens and not real $ because the numbers were often eye watering.

And we had 1/100th of budget or less than competitors because of the depressed EUL token price. So we would always get excluded or pushed aside once someone else came in.

Sometimes people talked to us enthusiastically one day and completely ghost us the next once they’d agreed a deal elsewhere.

With the benefit of hindsight I think we should have tried to take Euler private and start again with the token.

But hindsight is a wonderful thing. It wasn’t the same regulatory environment as we have now and there were lots of arguments against doing that.

The point is that you really need a highly valued token to compete for liquidity and integrations in lending though. The tech is very much secondary to your ability to pay in the early years to bootstrap liquidity and integrations.

It does make me wonder what will happen when all these pay to play token holders start to take profit after vesting ends or hedge out their exposure though.

[DMH 🦇🔊🌊 @DeFi_Made_Here]

@dackblake morpho just paid more for the integration, tech was never a question

isolated markets can be created on fluid and even on aave as well, so there is nothing special in the isolation model

[DMH 🦇🔊🌊 @DeFi_Made_Here]

@cryptographicas Cause you didn’t participate in the bidding war for the integration :)

[DMH 🦇🔊🌊 @DeFi_Made_Here]

Someone told me it comes from a $100m fee Morpho paid for the integration, idk tho

[LUKE CHMIEL⚡️ @talkintokens]

WHERE DOES THE 7% YIELD COME FROM: @RobinhoodApp Edition

-@Morpho borrower interest
-USDG TBill reserve yield finances rewards
-collateral mix upgrades the borrowers
-1yr target rate Merkl campaign pays the delta between organic yield & target
-All vault fees set to zero for now

[DMH 🦇🔊🌊 @DeFi_Made_Here]

@euler_mab Why you doubt me 🥲

[DMH 🦇🔊🌊 @DeFi_Made_Here]

@cryptographicas I don’t think it was paid in morpho tokens. I don’t think it was paid in morpho tokens

https://t.co/gxlZgntE9a

[Morpho 🦋 @Morpho]

Morpho Association has raised $175M to build the open credit network for the world.

Co-led by @paradigm, @a16zcrypto, @RibbitCapital with strategic participation from @apolloglobal, @vaneck_us, @circle_ventures, and @Ledger @Cathayinnov.

The round also included participation from @variantfund, @wmt_ventures, @preludexyz, @IOSGVC, @HashKey_Capital, @sbigroup, @Bpifrance, @mirana, @bamazizimesh, NJJ Capital and 10+ other strategic partners.

The funding will help accelerate Morpho's position as the foundation for onchain credit.

[Ethereum Institutional @ethereuminsti]

1/ Announcing Ethereum Institutional

An independent non-profit dedicated to accelerating the institutional adoption of Ethereum, its L2s, applications and overall ecosystem.

[DMH 🦇🔊🌊 @DeFi_Made_Here]

@ethereuminsti Ethereum is on the right path

[Sui @SuiNetwork]

Dive a little deeper into why @0xfluid is choosing to build on Hashi:

$BTC stays on its native chain while formally-verified contracts on Sui let it work as collateral.

Fluid is joining an exciting ecosystem of contributors building institutional-grade credit markets on top.

[DMH 🦇🔊🌊 @DeFi_Made_Here]

It is not a secret that Fluid DEX is the most efficient venue for stablecoins. We accounted for more than 50% of all stablecoin DEX volume across DeFi.

At the same time, we have learned that many existing and emerging stablecoin issuers either don't know how to leverage our infrastructure or can't interact with DeFi directly.

That's why we launched DEX Liquidity-as-a-Service.

We provide liquidity for stablecoins, yield-bearing stablecoins, and select RWAs for a flat fee starting at 2% per year.

Our partners get:

• No inventory risk
• No counterparty risk
• No smart contract risk
• No LP risks
• No management of the positions

This is the most competitive offering on the market, available across both EVM and Solana.

[Fluid 🌊 @0xfluid]

Building deep DEX liquidity is one of the hardest operational challenges for asset issuers onchain.

Fluid Liquidity as a Service (LaaS) is built for stablecoins, yield-bearing assets and RWAs.

Now powering @USDai_Official's sUSDai with $100M.

[DMH 🦇🔊🌊 @DeFi_Made_Here]

@USDai_Official 🌊

[USD.AI @USDai_Official]

https://t.co/CuJXiIKvG6

[DMH 🦇🔊🌊 @DeFi_Made_Here]

now need USDC whale to migrate

[Samyak Jain 🌊 @smykjain]

This whale migrated from Spark to Fluid using @DeFiSaver and reduced the liquidation price ~$100 from ~$1400 to ~$1300 👀🌊

[Mardeni @Mardeni01]

.@0xfluid is officially @solana pilled 🌊

Crazy to think @jup_lend is only 9 months old and already accounts for 60% of TVL.

[DMH 🦇🔊🌊 @DeFi_Made_Here]

@solana @Mardeni01 @0xfluid @jup_lend What is Solana equivalent of 🦇🔊? Asking for a friend

[DMH 🦇🔊🌊 @DeFi_Made_Here]

Highest lending rates in defi purely driven by the high demand for our liquidation engine

[Samyak Jain 🌊 @smykjain]

Another 10M USDT borrowed against WBTC spiking lending APRs of USDT further more!!! 🌊🌊🌊

Fluid has the most advanced liquidation algorithm is DeFi allowing it to provide highest LTVs in industry

[DMH 🦇🔊🌊 @DeFi_Made_Here]

I told you make no mistakes

[DMH 🦇🔊🌊 @DeFi_Made_Here]

"Back and forth with AI for a few hours"

[DMH 🦇🔊🌊 @DeFi_Made_Here]

Highest LTVs in industry is a blessing and a curse. People move to Fluid to avoid liquidations but rates spike as well

Probably worth exploring vault design where borrowers pay higher rates proportionally to their LTV to keep experience of low LTV borrowers smooth

[Samyak Jain 🌊 @smykjain]

A whale moved the borrowings to Fluid on Ethereum to save himself from liquidation spiking the interest rates.

Lendings on @0xfluid looking good right now 👀🌊

https://t.co/QsqQu7sx7k