Fluid Protocol Explained: Vaults & Liquidation

Fluid (by Instadapp) is an isolated-vault lending protocol. Each position lives in its own vault with its own risk parameters.

Isolated vaults

Unlike Aave's cross-collateral account, each Fluid vault is a separate collateral/debt pair. A drop in one vault does not affect another.

Health factor per vault

Fluid computes a ratio per vault from supply, oracle price and the vault's liquidation threshold. Below 1.0 the vault becomes liquidatable.

Supported networks

LendGuard reads Fluid positions via the VaultResolver contract on Ethereum, Arbitrum, Base, BNB Chain, Polygon and Plasma.

Fluid vs Aave

Aave pools all your collateral and debt into one account-wide health factor; Fluid keeps each vault independent. You can check both with LendGuard.

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