Introduction to Fluity Finance

Fluity

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 stablecoins. This type of friendly cooperation is similar to that of Ellipse and Curve.

  • A collateral ratio of just 110%
  • Governance free — all operations are algorithmic and fully automated
  • Directly redeemable — LUSD can be redeemed at face value for the underlying collateral, always and at any time
  • Censorship resistant — the protocol is controlled by nobody

Token Utility

Users can stake FLTY to earn platform fees (borrowing fees and redemption fees) from Fluity Protocol.

Token Distribution

There will be 100 million (100,000,000) FLTY tokens in total.

  • 20% liquidity provider rewards: Continuously minted for 1 year to liquidity providers of PancakeSwap FLTY-BNB trading pair (10%) and future stable coin pool (10%)
  • 25% airdrop to LQTY holders: As agreed with Liquity team, we will airdrop FLTY to LQTY holders and stakers. Those tokens will be distributed weekly for 2 years
  • 15% team/development fund: Lock-up for 1 year, then continuously vested for the second year
  • 5% initial liquidity/marketing/bounties: Set aside for providing initial liquidity and other marketing/promotion needs

FLUSD Stable Coin

FLUSD is minted when users deposit collateral (BNB, and more in the future) and open troves. The mechanism for its price stability is described in Liquity’s doc.

Stability Pool Rewards

Users can deposit FLUSD to Stability Pool to get both BNB gains (through liquidations of risky troves) and FLTY rewards as incentives for being early adopters.

Liquidity Provider Rewards

There will be 2 kinds of liquidity provider rewards: one is for BNB/FLTY PancakeSwap trading pair, another is for future stable coin pool (e.g., curve-like pool such as Ellipsis) with FLUSD.

Staking FLTY

Users can stake FLTY to earn a pro-rata share of the borrowing and redemption fees in FLUSD and BNB. For more details, check Liquity’s explanation on LQTY staking.

Airdrop to LQTY Holders

FLTY will be distributed to LQTY holders and stakers through airdrops for 2 years.

Launch

FLTY will launch in early May 2021. Please follow our Twitter and Telegram to know when the launch goes live.

fluity.finance is a decentralized borrowing protocol with interest-free loans, high capital efficiency, and censorship-resistant stablecoins on BSC.