Fluid Growth Vision & Community Buyback Discussion

[DMH]

@letsgetonchain

One way to improve this sustainably could be to spin up liquidity using EulerSwap, which I believe is well-suited for long-tail asset markets.(if you want to better understand EulerSwap you can read this https://x.com/letsgetonchain/status/1966095252822847924).

A possible setup:

• Deploy two vaults: one for FLUID and one escrow-only vault for stETH.
• The Fluid team supplies stETH to the escrow vault.
• The community supplies FLUID tokens to the FLUID vault.
• The team runs a just-in-time EulerSwap market that provides one sided from the FLUID vault, just in time borrowing FLUID against the stETH collateral.

This design has several benefits:

• FLUID holders earn lending yield on their tokens.
• The team earns trading fees from the EulerSwap pool.
• Borrowing costs and the short FLUID exposure the FLuid DAO would bee exposed in case of FLUID price token rise would be naturally hedged by the DAO’s large treasury of FLUID.
• It would be very easy to execute and not divert core team resources away from revenue-generating products (as this can be configured via Euler’s UI using audited code).

Thank you for your comment, but I don’t believe this setup is viable. Fluid already has access to its native token through the treasury, so there’s no need to borrow it from users and incur liquidation risk if the token price rises. Treasury-based liquidity is also far more predictable.

Your proposal would require Fluid to shift a significant portion of its ETH reserves to Euler and then find $FLUID lenders to match the current $20M buy-side liquidity. This would reduce overall liquidity, add extra costs, introduce liquidation risks, and move liquidity away from Fluid to Euler - none of which would improve DAO operations.

The only clear benefit of your proposed integration is yield on $FLUID, but that yield would be subsidized by the treasury, effectively mirroring the well-known APE DAO "stake-not-to-sell” staking program.