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![letsgetonchain Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1838923016744394752.png) letsgetonchain [@letsgetonchain](/creator/twitter/letsgetonchain) on x 1288 followers
Created: 2025-07-15 20:50:25 UTC

Thought I already reached peak bullishness on
@0xfluid design     

used to think Fluid DEX mainly helped lenders by boosting borrow demand -> higher utilization -> better yields    

But it also actively protects lenders during liquidations 🤯 

TLDR in fast market crashes, lending protocols that rehypothecate collateral hit XXX% utilization very rapidly and risk not liquididating enough collateral leading to bad debt  

Fluid DEX flips this rehypothecation trap🔁

As collateral prices fall, Fluid's DEX fills up Fluid's foundational liquidity layer with exactly the assets needed for liquidations, basically countering the rise in utilization rates caused by liquidations


XXXXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1945224456135405963/c:line.svg)

**Related Topics**
[lending](/topic/lending)
[0xfluid](/topic/0xfluid)

[Post Link](https://x.com/letsgetonchain/status/1945224456135405963)