Fluity Protocol is a friendly fork of Liquity Protocol on Binance Smart Chain. Fluity is committed to Liquity’s vision of providing a decentralized borrowing protocol with interest-free loans, high capital efficiency, and censorship-resistant stable coins.
Fluity has the same functionalities as Liquity (opening troves to borrow FLUSD, redemption, stability pool, staking, etc.) except that FLTY rewards from stability pool and liquidity pool will be sent to a vesting contract instead of directly back to users.
Statistics for Fluity are found on every page so you always have an overview of the platform stats.
Borrowing Fee — The Borrowing Fee is a one-off fee charged as a percentage of the borrowed amount (in FLUSD) and is part of a Trove’s debt. The fee varies between 0.5% and 5% depending on FLUSD redemption volume.
TVL — The Total Value Locked (TVL) is the total value locked as collateral in the system, given in BNB and USD.
Troves — The total number of active Troves in the system.
FLUSD supply — The total FLUSD minted by the Fluity Protocol.
FLUSD in Stability Pool — The total FLUSD currently held in the Stability Pool, expressed as an amount and a fraction of the FLUSD supply.
Staked FLTY — The total amount of FLTY that is staked for earning fee revenue.
Total Collateral Ratio — The ratio of the dollar value of the entire system collateral at the current BNB:USD price, to the entire system debt.
Recovery Mode — Recovery Mode is activated when the Total Collateral Ratio (TCR) falls below 150%. When active, your Trove can be liquidated if its collateral ratio is below the TCR. The maximum collateral you can lose from liquidation is capped at 110% of your Trove’s debt. Operations are also restricted that would negatively impact the TCR.
In addition to your statistics, your Balances are always on the top right corner:
With “Dashboard” selected, you will be able to view the Fluity main dashboard sections:
- Stability Pool
The Trove section is where you will maintain your loan. Here you will be able to add/remove BNB as collateral as well as manage your debt.
Note that each Binance Smart Chain address is only able to have one Trove.
Collateral — The amount in BNB pledged as security for repayment of your loan
Debt — The amount of FLUSD borrowed.
Liquidation Reserve — An amount set aside to cover the liquidator’s gas costs if your Trove needs to be liquidated. The amount increases your debt and is refunded if you close your Trove by fully paying off its net debt.
Borrowing Fee — This amount is deducted from the borrowed amount as a one-time fee. There are no recurring fees for borrowing, which is thus interest-free.
Collateral ratio — The ratio between the dollar value of the collateral and the debt (in FLUSD) you are depositing. While the Minimum Collateral Ratio is 110% during normal operation, it is recommended to keep the Collateral Ratio always above 150% to avoid liquidation under Recovery Mode. A Collateral Ratio above 200% or 250% is recommended for additional safety.
Opening a Trove
Open a Trove to mint $FLUSD debt against your $BNB.
1) Enter the amount of BNB collateral you wish to use. (The Collateral Ratio needs to be above 110% or above 150% if in Recovery Mode)
2) Enter a debt value greater than 2,000.00 FLUSD
3) Confirm the amount of BNB deposit and FLUSD displayed at the bottom info section
4) Click “Confirm”
After you have successfully confirmed, the Trove view will add the ability to adjust or close the Trove.
Adjusting Your Trove
Adjust your Trove by modifying its collateral, debt, or both by clicking on the “Adjust” button.
Information about your adjustment will be displayed at the bottom info section
After you have successfully confirmed, the new values will be displayed in your Trove.
Closing Your Trove
There are two ways to close your Trove. You can either manually enter the max amount of Collateral/Debt with the “Adjust Button” or you can click on the “Close Trove” button to automatically adjust it to your max amount of Collateral/Debt.
The Stability Pool acts as a cushion to make the platform more stable. If you provide FLUSD to this pool you will be able to earn some extra rewards.
Deposit your $FLUSD into the Stability Pool to earn rewards in $FLTY.
1) Click the “Deposit” button
2) Enter the amount of FLUSD you wish to enter
3) Click the “Confirm” button
You can adjust the amount at any time by clicking the “Adjust” button and changing the deposit value:
After some time, you will gain BNB and FLTY. When you have a reward to claim, the button will be enabled:
If you currently have a Trove open, you will also have the option to “Claim FLTY and move BNB to Trove.”
Bundling multiple frequently used actions is a way for users to save some gas fees while interacting on the Fluity website.
Stake the $FLTY you earn to receive protocol income in $FLUSD and $BNB.
1) Click the “Start staking” button
2) Enter the amount of FLTY you’d like to stake.
3) Click the “Confirm” button
After you have successfully confirmed, the new values will be displayed:
You can adjust the amount at any time by clicking the “Adjust” button and changing the stake value:
Click on the “Confirm” button to confirm the change.
Claim Stake Gains
Claim you Staking reward by clicking the “Claim gains” button and approving the transaction.
$FLTY rewards can be withdrawn from the Vesting Pool.
All $FLTY rewards collected on Fluity are automatically placed into the Vesting Pool for 3 months by default. Users can choose to either:
1) Withdrawn with penalty — Claim under the 3 month time period but face a 50% penalty
2) Withdrawn without penalty — Claim after the 3 month time period and face no penalty
After 3 months vested, the “No-penalty withdraw” button will be clickable
You can farm FLTY by staking your PancakeSwap BNB/FLTY LP tokens.
You can obtain LP tokens by adding liquidity to the BNB/FLTY pool on PancakeSwap.
1) Click Stake
2) Approve the amount of CAKE LP and Confirm
Risky Toves are troves that have a low collateral ratio and may be liquidated if collaterals prices drop sharply.
In the event your Trove is liquidated you will see the following:
You will be able to reclaim any remaining collateral before you can open a new Trove
What are redemptions?
A redemption is when FLUSD is exchanged for BNB. That is, for every $1 of FLUSD you get $1 worth of BNB in return.
You can redeem your FLUSD for BNB at any time however a redemption fee might be charged.
The Redemption Fee is charged as a percentage of the redeemed BNB. The Redemption Fee depends on FLUSD redemption volumes and is 0.5% at minimum.
Example) Let’s say the redemption fee is 1% and the price of BNB is $500 and you want to redeem 100 FLUSD. The redemption fee cost would be 0.002 BNB and you would get 0.198 BNB in total back.