Fluidity’s spend-to-earn protocol to go live on Ethereum ahead of Solana, Arbitrum and Polygon

Rick Steves

Fluidity’s goal is to replace yield farming and liquidity mining, replacing it with a sustainable utility mining model that incentivizes genuine users to explore different aspects of the protocol.

Fluidity will go live on the Ethereum mainnet on December 19, with Solana, Arbitrum and Polygon to follow, the DeFi protocol announced.

The blockchain incentive layer rewards users for swapping, trading, or performing any on-chain transaction with Fluid-wrapped assets.

Operating as a spend-to-earn protocol, Fluidity turns the traditional yield-bearing model on its head: rather than lending, staking or locking up digital assets for an extended period to earn yield, users receive randomly paid yields and large dividends that can range from cents to millions, simply for sending, receiving or swapping a Fluid-wrapped asset.

We want to gamify how people think about spending money

Shahmeer Chaudhry, Founder of Fluidity, commented: “Four or five years ago, everybody said DeFi could be the use-case that brings in a billion users to crypto – but it actually turned out to be NFTs and GameFi. At Fluidity, we want to gamify how people think about spending money, and our long-term goal is to reshape how people approach spending.”

Fluidity’s wrapped assets (Fluid Assets) are stablecoins, meaning they are backed one-to-one with the underlying currency and can be redeemed by users at any time.

Some 50-70% of all transactions will be yield-bearing, with rewards split 80:20 between senders and receivers, the latter of whom can include service providers, said Shahmeer Chaudhry, who added that dividends generated by the protocol derive from the cumulative yield created by every principal token deposited and lent on money markets.

Trigger rewards through everyday endeavors

Fluidity empowers users to leverage the spend-to-earn protocol to trigger rewards through everyday endeavors, such as paying for food, rent, or petrol, interacting with a decentralized exchange (DEX) or NFT marketplace, or participating in blockchain gaming.

50,000 users of the DeFi protocol, called ‘Fluiders’, have been stress-testing the system through transacting and swapping on both the Solana devnet beta and Ethereum testnet.

The protocol was created by game designer Shahmeer Chaudry in 2021 and $1.3 million in funding from Multicoin Capital, Solana, Circle, and Lemniscap. Prior to that, the project also welcomed over $100,000 in development grants from protocols such as Compound, Solana, Polygon, Aave, Lido, and RMIT Blockchain Innovation Hub.

Launching initially on Ethereum before transitioning to multi-chain, the protocol has been audited by Bramah Systems, Verilog Solutions and Hashlock.

Fluidity’s goal is to replace yield farming and liquidity mining, replacing it with a sustainable utility mining model that incentivizes genuine users to explore different aspects of the protocol.

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