There is no classical swap function on @0xfluid DEX, instead users "Lend and Withdraw" or "Repay and Borrow" to execute a swap.

For example, if a user has a $1000 debt in USDT and a $1000 debt in USDC, then the trader can Repay $500 USDT debt and Borrow $500 USDC on behalf of the borrower to make a swap.

The user's net debt won't change ($2000 minus the trading fees he received) but the composition will change. His debt is now $500 USDT and $1500 USDC.

Similarly, traders will Lend and Withdraw tokens to perform a swap on top of someone's collateral. This architecture allows lenders and borrowers to earn trading fees on their money market positions significantly improving their lending and borrowing terms.

If the trading APR is as low as 2% on both the collateral and debt side, borrowers reduce their borrowing costs by 4%! On Fluid, borrowing costs will always be lower than on other lending markets by design and borrowers will often get paid to borrow organically, with no incentives.

Since the lending markets have much higher TVL than DEXes ($46B vs $17B), Fluid DEX will become the most liquid DEX for certain pairs within days or weeks. 2 weeks before the launch we have 9 fig LP pre-commitments from the major DeFi protocols and interest keeps growing.

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