This is our independent Fluid Review (2026). Can a unified DeFi stack really compete with specialized protocols like Aave and Uniswap? Is the "$39 liquidity per $1 TVL" efficiency claim real? And should you trust a protocol that just rebranded from Instadapp after 6 years?
Summary of this Fluid review: Fluid is attempting something genuinely ambitious: unifying lending, borrowing, and DEX trading into one capital-efficient system. With $1.7B+ TVL, zero security losses in 7 years (including the Instadapp era), and a unique architecture where your borrowed debt can simultaneously serve as DEX liquidity, Fluid has proven the model works. The October 2024 DEX launch quickly made it Ethereum's #3 DEX by volume behind Uniswap and Curve.
But Fluid isn't for everyone. The complexity is real — understanding "smart collateral" and "smart debt" requires DeFi literacy beyond the average user. The FLUID token (rebranded from INST in December 2024) doesn't have revenue sharing yet, limiting its appeal to speculators. And while the architecture is clever, it's also newer and less battle-tested than single-purpose protocols.
For DeFi power users who want maximum capital efficiency? Fluid is genuinely innovative. For beginners or single-use-case traders: Uniswap for swaps and Aave for lending remain simpler choices.
Fluid Review - Introduction
Fluid began as Instadapp in 2018 — a DeFi smart account platform founded by brothers Samyak and Sowmay Jain at the ETHIndia Hackathon. After years of building infrastructure tools, they pivoted to building Fluid: a unified liquidity layer where lending and DEX functionality share the same capital base. The December 2024 rebrand from INST to FLUID marked this evolution.
Key Facts:
- Launched: Instadapp 2018 / Fluid rebrand December 2024
- Founders: Samyak Jain, Sowmay Jain
- Chain(s): Ethereum (primary), Arbitrum, Base, Polygon, + expanding
- Type: Unified Lending + DEX Protocol
- TVL: $1.78B (source: DeFiLlama, January 2026)
- Borrowed: $1.48B
- Governance Token: FLUID (formerly INST)
- Annualized Revenue: $15M+
The core innovation: Fluid's "Liquidity Layer" allows the same capital to serve multiple purposes simultaneously. Borrow ETH? That debt position can also provide DEX liquidity. This creates the "$39 liquidity per $1 TVL" efficiency that Fluid advertises.
Fluid Review - How It Works
We've spent considerable time testing Fluid's layered architecture, with each component building on shared infrastructure:
Key Features
- Liquidity Layer: The foundation — a unified capital pool that lending and DEX modules access
- Fluid Lending: Money market similar to Aave, but deposits automatically contribute to the liquidity layer
- Fluid DEX: AMM where "smart collateral" and "smart debt" positions act as liquidity
- Smart Collateral: Your collateral earns LP fees while backing your loan
- Smart Debt: Your borrowed position provides trading liquidity and earns fees
- Vaults: Pre-configured strategies for common use cases
The DEX v2 upgrade (coming Q1 2026) will add range orders similar to Uniswap v3, but with the lending integration that makes Fluid unique.
Fluid Review - Fees
Fluid's fee structure varies by product:
| Product | Fee Type | Amount |
|---|---|---|
| Fluid Lending | Borrow interest | Variable (market-based) |
| Fluid DEX | Swap fee | ~0.05% |
| Fluid Lite Vaults | Performance fee | 20% |
| Fluid Lite Vaults | Exit fee | 0.05% |
Cost Comparison (DEX swap):
On a $10,000 ETH/USDC swap:
- Fluid DEX: ~$5 swap fee = $5 total
- Uniswap v3: ~$5-30 (depends on pool fee tier)
- Curve: ~$4 (stablecoin) / $10+ (volatile)
In our testing, Fluid's DEX fees proved competitive, but the real value is capital efficiency: your collateral/debt can earn fees instead of sitting idle.
Fluid Review - Security
Security is where Fluid genuinely excels:
Track Record
- 7+ years, zero losses: Neither Instadapp nor Fluid has lost user funds
- Multiple audits: Extensive audit history from top firms
- Bug bounty: Active Immunefi program
- $500K security budget: December 2025 governance approved additional Certora formal verification
Audits
| Auditor | Focus | Status |
|---|---|---|
| Multiple (pre-launch) | Liquidity Layer | Completed |
| Certora | Formal verification (EVM + Solana) | In progress |
| Bug bounty | Ongoing | Active |
Our Security Assessment: 8.5/10 — The 7-year track record with zero losses is genuinely impressive. The team's investment in formal verification shows commitment to security. The complexity of the unified architecture is a theoretical risk, but it's been managed well so far.
Fluid Review - Pros & Cons
✅ Pros
- Capital efficiency: "$39 liquidity per $1 TVL" — your assets work harder
- 7 years, zero losses: One of the best security track records in DeFi
- Unified system: Lending + DEX + vaults in one place
- Smart collateral/debt: Earn LP fees on positions that would otherwise be idle
- Multi-chain: Ethereum, Arbitrum, Base, with more coming
❌ Cons
- Complexity: Understanding smart collateral/debt requires DeFi expertise
- FLUID utility: No revenue sharing yet — governance only
- Newer architecture: Less battle-tested than Aave or Uniswap individually
- Learning curve: More UX friction than single-purpose protocols
- Ethereum gas: Complex interactions can be expensive on L1
Fluid Review - Alternatives
Fluid vs Aave
Aave is the lending market leader with deeper liquidity and simpler UX. Fluid offers better capital efficiency if you're also trading. For pure lending/borrowing, Aave remains the safe default. For DeFi power users, Fluid's unified approach creates opportunities Aave can't match.
Fluid vs Uniswap
Uniswap dominates DEX volume with unmatched liquidity and simplicity. Fluid's DEX is smaller but offers the unique benefit of earning on collateral/debt positions. For simple swaps, Uniswap is the default. For integrated DeFi strategies, Fluid wins.
Fluid vs Curve
Curve excels at stablecoin swaps with minimal slippage. Fluid competes on volatile pairs and capital efficiency. Different strengths — Curve for stablecoins, Fluid for integrated strategies.
Best Alternative: For simplicity: Aave (lending) + Uniswap (swaps). For capital efficiency and DeFi optimization: Fluid.
Fluid Review - Who Should Use It
✅ Use Fluid if:
- You're a DeFi power user who understands leveraged positions
- You want collateral to earn fees instead of sitting idle
- You use lending AND DEX trading together
- You value a 7-year security track record
- You're comfortable with complexity for better efficiency
❌ Skip Fluid if:
- You want simple, one-click DeFi interactions
- You only need lending OR swaps, not both
- You're a beginner still learning DeFi basics
- You want strong token incentives (FLUID utility is limited)
- Gas costs on Ethereum L1 concern you
Verdict: Should You Use Fluid?
Our Rating: 8.0/10
| Category | Score |
|---|---|
| Fees | 8.0/10 |
| Security | 8.5/10 |
| Features | 9.0/10 |
| Liquidity | 7.5/10 |
| User Experience | 7.0/10 |
TL;DR: Fluid is what happens when smart people ask "why are lending and DEX protocols separate?" The unified liquidity layer genuinely delivers better capital efficiency, the 7-year security track record builds trust, and the roadmap (DEX v2, Solana expansion) shows ambition. It's not for beginners — the complexity is real — but for DeFi users who want their capital working harder, Fluid is the most innovative protocol to emerge from the 2024-2025 cycle.
Sources & Verification
Data in this review verified from:
- DeFiLlama - Fluid (TVL, borrowed data)
- Fluid Documentation - Audits & Security
- Instadapp Blog - Fluid DEX Launch
- Messari - Fluid Research
Last verified: February 2026
Frequently Asked Questions
Is Fluid safe?
Fluid (and predecessor Instadapp) has 7+ years of operation with zero user fund losses. Multiple audits, active bug bounties, and formal verification in progress. One of the strongest security track records in DeFi.
What is smart collateral?
Smart collateral means your deposited collateral simultaneously earns LP fees from DEX trading while backing your loan. Your assets do double duty instead of sitting idle.
What happened to Instadapp?
Instadapp rebranded to Fluid in December 2024 after launching its unified lending/DEX architecture. The INST token became FLUID. Same team, same security history, evolved product.
How does Fluid compare to Aave?
Aave is simpler and has more liquidity for pure lending. Fluid offers better capital efficiency if you also trade. Power users prefer Fluid; casual users prefer Aave's simplicity.
What are Fluid fees?
Lending: variable interest rates. DEX: ~0.05% swap fee. Lite Vaults: 20% performance fee + 0.05% exit fee. Competitive with alternatives.
What chains does Fluid support?
Ethereum (primary), Arbitrum, Base, Polygon. Solana expansion is planned with formal verification in progress.