Fluidity
Crypto Overview
Overview
Fluidity (FLY) is a cryptocurrency token that powers the Fluidity Money protocol, which aims to provide yield on user transactions. The protocol was launched in 2023 and operates on multiple blockchain networks including Arbitrum and Optimism.
Purpose and Utility
The core purpose of FLY token is to serve as a governance token for the Fluidity protocol and to incentivize protocol usage. Token holders can participate in governance decisions regarding the protocol's development and parameters.
Business Model Analysis
The protocol's primary function involves generating yield on user transactions, which operates similarly to traditional lending protocols. Users deposit stablecoins which are then used to generate yield through various DeFi protocols. This mechanism raises concerns from an Islamic finance perspective as it involves interest-based lending and borrowing.
Real-World Adoption
The protocol has achieved some adoption within the DeFi ecosystem, with integration across multiple blockchain networks. However, the primary use case remains centered around yield generation through lending activities.
Development Activity
The project maintains active development with regular updates to the protocol and documentation. The team appears to be consistently working on platform improvements and network expansions.
Token Distribution
The FLY token has a distribution model that includes allocations for the team, early investors, and community incentives. Specific vesting schedules are in place for team and investor allocations.
Crypto Impact
To assign a comfort level investing in Fluidity from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Fluidity.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.