Fluidity is a new project that aims to change the way crypto coins are handed out for different projects. Instead of rewarding mercenary farmers, it wants to pay users for actually using a protocol.
The project works by allowing users to deposit a stablecoin (such as USDT, USDC, DAI, etc) into the Fluidity protocol and receive a Fluidity-wrapped token (fToken) in return.
The original stablecoin is then deposited into a yield-earning protocol like Aave or Compound. The fToken can be used like any other stablecoin, but the more it is used, the higher the chances of winning a payout.
The payout is based on factors such as total value locked, daily active users, and the gas fee of the specific transaction.
According to Fluidity co-founder and CEO Shahmeer Chaudhry, about half of the transactions win something, while once every three months, someone will win a very large payout.
Fluidity aims to be a tool for crypto projects to get their native token into the hands of real users, and eventually, protocols will be able to program the behavior to their specific needs.
The project also has measures in place to prevent wash trading of fTokens. It’s still early days for Fluidity, but solving this problem is a priority for many DeFi projects and DAOs.
