Addressing the fragmentation and inefficiency of liquidity on EVM chains, Fluid3 proposes a solution that integrates multiple liquidity aggregation protocols into a single, accessible liquidity layer. This layer, available through a simple API, streamlines the process and enables developers to harness the best-suited protocol for each transaction, optimizing liquidity and fostering efficiency.
Fluid3's liquidity layer carries out two principal functions:
Routing: The layer acts as an intelligent routing system, navigating transactions through the most efficient liquidity aggregation protocol to maximize output. This means that each transaction, instead of being tied to a single protocol, can leverage the benefits of the optimal protocol as determined by a set of metrics, which could include factors such as liquidity depth, slippage, gas fees, and more. This dynamic routing increases overall transaction efficiency and can potentially lead to more favourable outcomes for end-users.
Batching: The layer also introduces an innovative mechanism for batching transactions. Whether it's for large transactions that can benefit from being split across multiple protocols or for frequent transactions that could be grouped together, this batching mechanism aims to significantly reduce the gas fees that are often a major hurdle in the DeFi space. By intelligently bundling transactions, Fluid3's solution can take advantage of economies of scale, reducing the per-transaction gas cost and making the process more affordable for users.
Fluid3 is designed to be a robust and adaptive liquidity layer that sits on top of existing protocols. It is built to learn from every transaction, continuously optimizing its decision-making algorithm to ensure it always chooses the best route for maximizing output and minimizing costs. The end result is a more efficient, cost-effective, and developer-friendly way to interact with DeFi protocols, facilitating broader and deeper engagement with the exciting opportunities within the DeFi space.
Proposed Solution and Architecture: