Collateral Types

It is important to remain stable, secure, and decentralized

Fluid Protocol will support multiple collateral types. We have included a host of Liquid staking tokens which will allow massive amounts of liquidity to be unlocked, ensuring that there is enough collateral to grow the stablecoin market cap long-term.

Collateral Types Supported:

• FUEL

• ETH

• wstETH

• EzETH

• weETH

• RsETH

Criteria to add Liquid Staked tokens as a collateral type:

• Deep liquidity to prevent Liquidation Cascades. Liquid staked tokens in general are not necessarily directly pegged to the underlying asset.

• Trust minimized & timely redemption mechanism. If the liquid-staked asset can be easily redeemed for underlying collateral tokens, it greatly reduces the potential for Liquidation Cascade.

• Potentially higher collateralization ratio for Liquid Staked tokens.

• Oracle price feed

Collateral types we do not intend to support:

• Centralized stablecoins like USDC/USDT

Centralized stablecoins such as USDC and USDT are subject to regulatory freezing and mismanagement of collateral by centralized issuance entities, again posing massive counterparty risk to a decentralized stablecoin protocol.