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How Does Fluo Work?
Explaining Fluo's ecosystem
Let's take a step-by-step look at Fluo's ecosystem and how the various parties are involved.
LPs first deposit USDC into their preferred vaults via omnichain deposits and receive $xLP. Why xLP? A perp DEX can have many vaults, such as BlueChipLP, AltCoinLP, hence xLP.
$xLP accrues value from trading/market making fees, funding fees, and trader's losses.
It also earns $esFLUO incentives and the LP can be bonded for even more external incentives.
stFLUO holders receive value accrual from market making fees, vault creation fees, and FLUO staking rewards.
stFLUO can vote escrow into veFLUO to vote and direct esFLUO to select vaults to increase its APR, and receive vote bribes if any.
veFLUO also get boosted LP rewards.
Perp DEXs with perp AMMs (GLP, gDAI, etc) can attract retail liquidity from any chain.
Incentives can be given to LPs that bond to attract sticky liquidity.
For better cost effectiveness, they can bribe veFLUO voters to direct esFLUO to their vaults instead.
Traders are attracted to perp DEXs that have more liquidity.
More liquidity means better spread and slippage, encouraging traders to trade more and increase the volume.
More volume = More DEX profit
Perp DEXs, traders, and LPs are the core pillars of DeFi, and Fluo is the platform that brings all of them together to create a win-win-win-win scenario! traders
Last modified 6mo ago