Fluid Tokens: Boosted Stake, New Features & ISPO Ending Details
Episode by Peter Bui on December 21st, 2023
1. A Year of Progress The episode kicks off with a recap of the incredible journey Fluid Tokens has had in the past year. Matteo and Raul discuss how they’ve been diligently working to meet the community’s demands within the Cardano ecosystem. They highlight some key accomplishments, including upgrading their peer-to-peer lending protocol and introducing the groundbreaking renting protocol, which allows users to rent tokens and NFTs without selling them.
2. Boosted Stake: Maximizing Rewards with Minimal Risk The spotlight then shifts to Boosted Stake, one of Fluid Tokens’ most exciting features. With Cardano staking rewards undergoing changes, users are seeking ways to optimize and boost their stakes while minimizing risks. Matteo and Raul explain how Boosted Stake works, allowing users to lend their ADA and earn rewards while borrowers can access additional staking power for ISPOs.
3. Aquarium: Paving the Way for User-Friendly Transactions A fascinating feature known as “Aquarium” is introduced, aiming to simplify transactions for users who may not be crypto-savvy. This feature enables users to pay for transactions using custom tokens or stablecoins instead of ADA. Behind the scenes, a decentralized group of nodes converts these tokens into ADA to cover transaction fees, making the process seamless and user-friendly.
4. Composability: Enhancing DeFi on Cardano Matteo and Raul shed light on Fluid Tokens’ composability feature, which allows other dApps to integrate and interact with their protocols. They share an example of how this can benefit NFT marketplaces and streamline transactions, emphasizing the potential for broader DeFi possibilities within the Cardano ecosystem.
5. ISPO Closure and Token Generation Event The conversation shifts to the imminent closure of Fluid Tokens’ ISPO (Initial Stake Pool Offering). Matteo and Raul provide details on what happens next, including the retirement of FLDT pool and the distribution of NFT rewards to delegators. They also explain the linear vesting schedule for token rewards, starting in February 2024.
6. Liquidity Bootstrapping Event and Beyond Fluid Tokens has exciting plans ahead, including a token generation event in early January and a liquidity bootstrapping event with Minswap on January 12th. The team outlines the incentives for participants, including triple rewards and dedicated pools. They also tease a mysterious project on Midnight, hinting at its potential significance within the Fluid Tokens ecosystem.
7. Expanding to EVM Chains Matteo and Raul touch on their venture into the EVM (Ethereum Virtual Machine) world with Milkomeda. They explain that while Fluid Tokens is currently running on the Milkomeda Network, they have plans to expand features and potentially deploy on other EVM networks, ensuring thorough research and community engagement.
You can find out more about Fluid Tokens at their website and start using their platform.
Fluid Tokens References & Website Links
- Website https://fluidtokens.com/
- Twitter: https://twitter.com/FluidTokens
- Discord: https://discord.gg/7Upryraspd
- Medium: https://medium.com/@FluidTokens
The Fluid Tokens ISPO is ending and I have Matteo and Raul joining me on this episode to talk through the mechanics and what happens next after the end of this ISPO, but also about all this really, really cool stuff that they’ve been developing over the last year in 2023 and some new features coming up in 2024 such as Boosted Stake and this new feature called Aquarium. Really cool, really exciting and they also dropped some Alpha as well right at the end of this episode. So make sure you check that one out.
Listen all the way to the end and don’t forget to give me that thumbs up, subscribe, notification bell on your way in. Oh, and I’ve got chapter markers down there. People do complain that some of these interviews are really long. Use the chapter markers. They really help narrowing down to the topics that you’re most interested in. Let’s get into this interview. All right. This one is super cool. This is an overview and look at fluid tokens and what’s happening and what should I say what’s coming up for the project really soon. And I have…
Matteo and Raul joining me from the project to talk through all the different aspects of fluid tokens. I’m pretty really, really am excited about this. Gentlemen, welcome back to the podcast. Hey, Pete. Nice to be here again. Hi, Pete. Hope everything is going well, right? Oh yeah, everything is certainly going well. Now you guys have had one crazy year of one thing after another.
You’ve watched you guys launch the protocol and bring it to where it is now featured packed massive community behind it and all these really cool aspects that you’ve done. Before we get into these aspects that I want to talk about like the token and the end of the ISPO which I really want to get to as well. But can we have a little bit of a recap of what on earth have you guys have done this year?
because there’s so much to it. Can we get a quick recap of everything that you guys have done? So in simple terms, we just follow the community requests. So we try to understand what the community needs in Cardano and what we can do very well. And then we deliver the new protocols. And of course, that means we did a lot in this year. But we are super happy to do it. So let’s try to sum it up a little bit very quickly. And we.
upgraded our peer-to-peer lending protocol that made us known in the Cardano ecosystem. Now pools can lend for these loans, which makes much more flexible the whole process. And at the same time, we still have the requests from the borrowers as well. So it’s kind of a double side. Then we did the renting protocol, which is a new thing that Cardano never saw before.
and allows people to rent tokens and NFTs without having to sell them. So any super safe because it’s leverage Cardano’s mechanics of delegation. And this is super important for many types of NFTs that tokens in general, like token, you know, access tokens that give access to services, profit, chairs, et cetera. And then we also recently are.
finish the auditing of the BoostedStake, which is a whole new protocol again, that Raul can talk about more later if you want, Pete. And at the same time, we also have new protocols coming, the new version of the Landing Plug protocol as well. We just finished the auditing today, so a new version again. And at the same time, we also have Aquarium, which is in work in progress, which basically fixes the…
objective to being able to pay transactions on Cardano without ADA. So it can be completely sponsored by the DApps themselves or with custom tokens like stablecoins, for example. So a lot of things are happening. We are addressing all of them correctly, so slowly with testing, auditing, et cetera. But it looks like we are doing many things at once.
It really does. Now I do want to go into that boosted stake because it’s something that you guys have been talking about quite a bit lately on social media. But this is the other one that you just mentioned, being able to pay transactions with other tokens. What you call this feature? This is something new. I haven’t heard of this one. Can we go through this one first? Sure, sure, sure. Just basically we call it Aquarium, just a name, a cool name for the protocol itself. But the idea is to…
remove the difficulties for apps to onboard people that are not crypto-savvy. So when you have apps that maybe allow paying in custom tokens or with the stable coins, for example, you may not need ADA at all. But if you have to every time transact with ADA, it requires the user to buy ADA to get ADA to manage ADA in their wallet, which can be very cumbersome for people that are not nerds like us, right?
Instead, what we do is allow people to do the transaction paying with custom tokens. On the other side, there is someone, a decentralized group of nodes that convert these stablecoins, these custom tokens in the corresponding amount of ADA and allows them to execute the transaction. They cannot touch your transaction, but they can pay your fees for you. That is really cool. Nice little mechanics there.
be able to use stablecoin assets essentially to pay for all these various transactions. Absolutely love it guys. I’ll see more of that when it comes into action and when you guys implement it. That one is a super useful feature so I can’t wait for that one. But let’s go back to over to the boosted stake as well. Now I think this is a really cool feature and we might see a lot more of this from other protocols as well.
As staking rewards seem to diminish over the years, we will see more people trying to work out the best way to optimize and boost the stake. But how does it work with what you guys have implemented? I saw another tweet a little bit earlier today explaining it. But let’s go through that so everyone else watching this can have a really good understanding. Yes, so boost the stake is born.
basically starting from two issues. Well, the first, as you said before, the rewards on Cardano are lower than one year ago and so on. And so users wants to maximize the yield that they have on their ADA. And users also don’t want to have a risk on that yield. For instance, some of our users do loans against collateral.
but they are always checking how much the collateral value is and so on. And the idea is how can we maximize the yield, reducing to the minimum the risk? Well, the best approach is creating loans where no collateral is needed and there is no default. So in this case, there is only pure yield. And this is how Boosted Stake was born.
I can provide my ADA to the protocol on fluid tokens and decide which APR I’m willing to loan my ADA. And once the ADA is in the protocol and not used by any borrower, it’s still delegating with me. So I have all the control over the delegation with that ADA earning my regular rewards. But as soon as someone, a borrower,
needs to increase their staking delegation for ISPOs because he’s running a pool and would like to increase the block that he’s minting during the epoch. This is where everything activates. The borrower gets how much ADA he wishes and for how long he wishes, and the lenders get the APR that they wanted.
everyone is happy and at the end of the loan the ADA is back under the real ownership and everything works well thanks to Iken. This probably would not be possible using just
how light our smart contract now is. Light, fast, and amazing. No need of betchers. How cool is that? I think everyone’s moving to Aiken and upgrading their smart contracts to that smart contract language, which is super cool. I didn’t realize that it really enabled you guys to develop some things like this. So I thought you still could using regular smart contracts. But it sounds like a
the power of Aiken really, really has shone through here in this case. I love that use case. I love how easy and simple it is, especially for someone that is looking for something that isn’t too risky and has a very simple mechanic. All they have to do is provide that particular collateral into that loan. And hey, presto, they get that boosted stake in their return. So nice little mechanics. Are there any downsides to this?
So the lender has to be sure of only one thing. During the loan, he cannot touch his ADA. The ADA is under the delegation for the borrower. So he cannot withdraw the ADA. But the lender can decide how long his ADA can be used for. So I can deposit my ADA for one month. And if it’s used, I know exactly when that ADA will be returned to my address.
So this is the only thing that the lenders have to account for and audit has successfully passed. So we are happy. We are finishing the last weeks on Testnet and can’t wait to release on Mainnet.
All right, very cool. So if you’re not expecting a massive spike in ADA and you don’t need to sell for some reason, then it’s a good opportunity to just earn that extra ADA. So absolutely fantastic. Now, are you guys getting audited for this as well with all these new features and things that you’re building? Like how’s the audit process work and security and upgrades happen with the platform?
So we are finishing, as Matteo said, we have finished two audits right now. The first audit is regarding the FluidToken’s migration to Iken. And it’s not just a migration, actually. The protocol will have compositability, so we’ll be able to communicate with other protocols in the same transaction. And.
will also be able to do more stuff in the fluid tokens in the same transaction. And this is something that people will love. And so this audit finished today. So we will start from next week’s releasing first on Testnet and then on Mainnet, this migration, while on BoostedStake instead, it finished, I think, two weeks ago, the audit.
And usually the security process works like this. We release the smart contract code with the auditors. They give us the feedbacks. Usually are not just vulnerabilities, but instead are more like suggestions to make everything faster, lighter, and so on. And also user-friendly for the user. And we are happy about this because once we
Once we are at this point of our protocol, we want everyone to feel safe. And audit is only the first step. There will be additional steps in order that everyone can feel 100% safe using our protocol.
Yes, it’s that safety net that you guys provide that make people more assured to use the platform. So that’s something definitely needed. Now, there was one thing that you mentioned a little bit earlier there that I thought was quite interesting, and that was the ability for other dApps to connect and use your protocol and that composability that you mentioned. That sounds really exciting. Can you give me a scenario or?
a use case where someone else can interact with it or how would they? Like do you mean from like a wallet interface or something like that? Give me a scenario. Sure, sure. I think that the basic scenario is, oh look, I would like to purchase this NFT on a marketplace, but I don’t have enough ADA. Maybe I can request a loan on a fluid tokens for that.
Or wait, that can take too long. I don’t want to create a borrow request, but I can see that there is instant liquidity on fluid tokens for my NFT. So should I make one transaction to get that liquidity and then purchase in another transaction? No, let’s make it faster. Let’s make everything this in one transaction. I collect liquidity from fluid tokens and I am purchasing the NFT from the marketplace in one click.
Wow, guys. Okay, wow. Okay. I’m assuming you’re talking to some marketplaces as well about this to get it implemented and helping them to implement it too. That is really cool. Wow. Okay. I’ve never seen that anywhere else. It doesn’t exist anywhere else on any other chain? In AVM chains, there are some alternatives, but they make the architecture is so different that
it’s difficult to compare correctly because it’s easier to do some stuff. It’s more difficult to do other stuff there. And on Cardano is not that common yet. The composability problem in Cardano has been a huge thing because the standard approaches to develop a smart contract until recently was to limit the amount of interaction between smart contracts in order to avoid, for example, double spending problems.
And now we actually change the whole approach here. We made it much more flexible, but at the same time, safe. The other thing, Garen also says the same. So it’s not only our opinion. But it makes it possible to actually interact with all our smart contracts from outside, from other smart contracts. And our smart contract can go, the UTXO can go into the other smart contracts. So if they also support composability, we can interact with them.
And this opens a much better classic definition of DeFi possibilities. Yeah, someone did tell me that the composability of EVM smart contracts was a lot easier compared to UTXO stuff. But this sounds like a big reduction of that gap. And it sounds like a hell of a lot easier. All right. Wow, OK. I’m super excited to see some of this stuff in action and really show those guys on those.
on the EVM side of things, you know, what we can do here. So really, really cool stuff guys. Now, we’ve got all this ISPO thing ending as well. And unfortunately I’m seeing delegates leave my state pool now and move on to other ISPO’s. So, you know, first off, big thank you for including me on the Fluor Token ISPO. Lots of people have come in and supported the pool and, you know, support Fluor Token over
the last year or so, so, you know, big, big thumbs up to that. Um, but what’s happening now? What’s happening with the ISPO? What’s happening next? So, ISPO is going to finish the 26th of December. That’s the day, uh, during the change of epoch where delegators can change delegation and decide the new pool. We will probably do a shutout to, uh, stake pool operators, to ISPOs running right now. So, uh,
everyone can contribute to decentralization. And FLDT pool, our own pool, is going to retire. There is no point of keeping it there. We want to spread that ADA accumulated there around other pools. And the delegators will get on the 6th of January the NFT rewards for FLDT.
So the ones that were delegating with the main pool will get this NFT that is going to work as boost during the liquidity bootstrap event. And what about the rewards instead? The rewards will be claimable on a platform that we will announce since February. And over the 2024, they will get the tokens that they deserve for believing in us and taking part in the I-SPO.
Okay, so is there a linear vesting schedule in 2024? Is it like a monthly thing that we’ll be getting the tokens out? Yeah, there is a linear vesting of one year. And starting from February, every three months, there will be one of the trenches of these rewards. It’s good to get those details clarified. And then you also said liquidity bootstrapping event.
So when would the token generation event happen, when is this liquidity bootstrapping event? And have you decided on the platform that will be done on? The token generation event will happen in the first week of January. And finally, on the 12th of January, we will launch our liquidity bootstrap event with Mineswap. It actually took a very long process
all the numbers and everything. But finally, we announced all the details. And one thing that I would like to point out is that the liquidity bootstrap event is usually a good way to launch a token if there is enough incentive for participants. Why a participant should join the liquidity bootstrap event and not wait for?
some months, some weeks after the official launch. Well, we put good farming rewards for participants. We will have triple rewards. So ADA, FLDT and MIN token. And there will be a dedicated pool only for participants of liquidity bootstrap event. So in this way,
We will make sure that everyone is rewarded for participating. And also, as I said before, ISE PO Delegators that got the NFT will also get an additional boost and will be incentivized to join the event. And if they are not willing to do it, they can even trade this NFT and sell it to someone who is willing to participate.
Yes, I was going to ask that. I’m sure there’s some people that would rather sell it and have it on the market, take that little bit of ADA and let someone else participate in the liquidity bootstrapping event. So really good to hear that. Would there be any other utility with this NFT as well that’s being given to users? Yes, there will be some utilities regarding the platform.
This is going to be one utility that is not going to last forever, but it will be used as a fee reduction on the platform itself. And we will also unlock some particular features on the platform for the NFT holders. That’s really nice to reward those long-term delegates to the pool there. So thank you so much for that. I’m looking forward to seeing…
One of those NFTs appear in one of my wallets too. So I can’t wait to see what you guys have put together for it. The artworks always a surprise sometimes for some of these, some of these air drops. Now there’s a lot there to unpack all those brand new upgrades, all those new features, the end of the ISPO, the token generation event, the liquidity bootstrapping event, lots there to take in. Is there anything else that the audience needs to know about that you guys are up to?
Well, I would say that maybe Matt, do you want to say something about Midnight? Just a little spoiler. Oh, not too much spoiler. So we cannot say much yet. It’s it’s what it’s, you know, I say internal NDA or something like this. But the thing is, we are working, not only studying, but working on Midnight because there are several use cases that can be leveraged Midnight features. And
It’s super important because it can enhance more the whole ecosystem of fluid tokens in general. And there is a lot of different types of protocols that can be developed on midnight that will be super useful for the community and for different new use cases as well. And what we basically are doing as fluid tokens is now in this moment, we are basically
doing the feasibility plans and understanding the whole intricacies of Midnight itself. Because in this way, we can start as soon as the tools are there, start creating the actual protocols and that people will be able to, as always, try in testnet first and then in mainnet and see how we can integrate with Cardano main layer. So it will be very interesting to see actually having two different chains connected and
communicating properly so the user can leverage our ecosystem, our token as well on both sides. All right, okay. Thank you for that little bit of alpha there. I’m looking forward to seeing what you guys come up with on midnight. It’s super exciting too. There’s probably just one thing that I’d like to reference alongside that as well. And I saw a little bit earlier this year that you also built the EVM version and launched OnMill Commodore.
What’s happening with that side of things? Are there any plans to grow that or even expand over to other EVM chains? Yes, regarding Milcomeda, as you know, there is our platform running on Milcomeda Network. And so the first part of our protocol has been, let’s say, migrated. It’s not really a migration because EVM contract works in another way. But…
What we want to do first is expand the features of that contract. We want also to allow instant liquidity and other stuff. And then, starting from there, this means that we can easily deploy on any other EVM network. So, sky is the limit in this case.
One thing is that we will not, of course, just release on those networks. We first, we will need to study properly the ecosystem to understand what are the requirements of the community of each ecosystem. And for that, we will probably need a bigger team and we are looking for talents inside not only the Cardano ecosystem, but the Web3 ecosystem. All right, super exciting, guys.
It’s going to be a really bright future for you guys. I think 2024 is going to be super exciting with all of these things happening all at the same time. And yeah, I can definitely see the team growing. So good luck with that. Good luck with the growth. Good luck with the token generation event, liquidity, bootstrapping event, everything else around it. Final words guys, before we wrap this one up. Yes. So to the community, just guys, check the tokenomics.
because it’s very good. There are no VCs behind, there hasn’t been any pre-sale. The token is majority, almost all of the token is allocated to the community. There are very strong and long-lasting periods for the team as well, for the part of the team, which is completely small compared to the total. The token has a strong utility. We have been there for years now in the Cardan ecosystem. We love the ecosystem. We are not…
Uh, we don’t have intention to go on other chains, you know, migrate completely, but instead creating bridges that bring them to Cardano. So this is our final words. If you guys believed in us so far, you will see that 2024, 2024 will be a great, great year for food tokens and for Cardano in general, of course. I can’t wait. But, uh, Mattia wrote.
Thank you so much for joining me on this episode and talking through everything fluid tokens. It’s going to be super exciting the next few months. I can’t wait to see what you guys have in store. Thank you Peter. It’s been a pleasure as always. All the links, everything in the show notes for you guys. You can find out a little bit more about fluid tokens, what they’re doing with this token generation event, this liquidity bootstrapping event, all those things. Make sure you check out the tokenomics, do a lot of research before jumping into any of this stuff. The team have been building for the last year. So absolutely love the platform myself.
And looking forward to some of these new features coming out. I can’t wait to see in a marketplace to have the loan and borrowing integrated in there as well. It’s probably a little bit too degen for my taste, but, you know, there are other people out there that will take the loan out to be able to buy some of these NFTs and other things out there. Really cool, really exciting stuff. If you enjoyed the episode, thumbs up, subscribe, notification bell, as always, and I’ll see you in the next video.
Yeah, gotta do it like that. You’ve been listening to the Learn Cardano podcast. Gotta get it hype. Crypto is what we like. But this is not investment or financial advice. Gotta do your research, because it’s risky. We know it is. This show is educational and it’s informative. Crypto’s the future, really. It ain’t no debate.