Seed $FLUID DEX Liquidity on Base and Arbitrum
Summary
Seeding DEX liquidity for $FLUID on the Base and Arbitrum networks. The initiative will allocate 0.25% of the total $FLUID supply to each chain, sourced from the existing Uniswap v3 pool currently managed by the team multisig. The primary goal is to expand $FLUID accessibility, improve trading efficiency, and position the protocol within key L2 ecosystems.
Context
$FLUID currently maintains liquidity on Ethereum mainnet via a Fluid DEX and Uniswap v3 pools, which is protocol-owned liquidity as per the Growth Plan. While Ethereum remains the primary network for $FLUID liquidity, seeding DEX liquidity on the Layer 2 solutions like Base and Arbitrum has created significant opportunities to increase exposure, enhance user experience, and tap into new user bases.
Key considerations:
-
Base and Arbitrum have shown consistent growth in user adoption and DeFi activity.
-
Several ecosystem partners and potential integrations exist on these chains.
-
Establishing native liquidity on these networks enables faster and cheaper trading, making $FLUID more accessible to a wider audience.
-
Chainlink CCIP standard will be used for $FLUID multichain as per the recent governance approval.
Each chain will receive 0.25% of the total $FLUID supply pulled from the Uniswap v3 on Ethereum, representing a modest but impactful allocation aimed at bootstrapping initial liquidity and market presence. Later, this initiative will be extended to Polygon & Solana chains.
The liquidity will be deployed on Fluid DEX and managed with price efficiency and long-term sustainability in mind.
Next Steps
-
Multisig Execution
The team multisig will withdraw the required tokens from the Ethereum Uniswap v3 pool (0.5% total supply) and bridge them to the respective chains. -
Liquidity Deployment
Deploy $FLUID paired with ETH on Fluid DEX on both Base and Arbitrum. Parameters such as price range and LP strategy will be optimized for depth and capital efficiency. -
Monitoring and Adjustments
Regularly monitor the pools for performance and community feedback. Adjustments (e.g., fees, rebalancing) will be made as needed, and further governance proposals may be introduced if additional actions are required.