Fluidity 🌊💸— Using Chainlink VRF to power the future of money
Providing Users With a Secure Source of Verifiable Randomness
Fluidity — Next-Generation Assets
If your money’s on the move, exposure to DeFi can be difficult, daunting and expensive. Interest rates and yield rewards are given primarily to those providing liquidity through monetary assets being held at an “idle” state. In reality, the majority of the global population, especially those from low income backgrounds, cannot afford to participate.
Fluidity is a stablecoin for people who can’t afford to leave their money idly generating interest. Fluidity rewards users when they actually use it.
What makes Fluidity remarkable is the fact that it is designed as a no-loss lottery, except every time you make a transaction using the token you are receiving a ticket at no cost. You lose nothing when you use Fluidity. The sender and the receiver both win a portion of the jackpot if one of the transactions wins.
When you wrap your existing token into its Fluid form, Fluidity takes that token and invests it on Compound Protocol and other yield generating sources. The wrapped Fluid token is always backed 1 to 1 and can be converted back at any time. The cumulative yield that is earnt from lending the asset, is then used to create the prize pool, that you could win when you send Fluid token to contracts and wallets on-chain.
Imagine buying groceries, clothes, or petrol, and winning a life changing sum, all without deviating from your usual spending habits. This concept seems almost too good to be true, but the unique properties of Decentralised Finance and the Fluidity no-loss lottery makes it possible.
The Fluidity team is excited to announce that we will be using Chainlink’s Verifiable Randomness Function (VRF) in our Polygon (previously known as Matic) implementation. This will improve security and help decentralise the way winners are selected.
Generating verifiable randomness on the blockchain has long been an infamously difficult problem.
The Fluidity protocol requires randomness to select the winner of the reward distribution. Initially, this randomness generation process was manual and centralised, making it difficult for users to fully trust Fluidity’s ability to generate a provably fair winner selection for its reward distribution.
The in-house randomness solution will be rolled out in our initial phases for Ethereum. We will be experimenting with our second phase randomness solution, Chainlink VRF for Polygon due to its low function execution cost and low latency properties.
Importance of Chainlink VRF
In our Polygon implementation, Fluidity will use the Chainlink Verifiable Randomness Function (VRF) to pick winners to reward when they transact. Beyond Chainlink’s reputation and usability, the main advantage of using Chainlink VRF is that it’s a provably fair and verifiable source of randomness designed for smart contracts.
Chainlink VRF generates a random number from blockchain data that is unknown when the request is made, along with a cryptographic proof verifying the number’s validity and tamperproof nature. This cryptographic verification cannot be fabricated by oracles, our own developers, or external users, guaranteeing that all Fluiders (those who interact with the Fluidity protocol!) can have complete confidence that the rewards are awarded in a fair, unbiased, and tamperproof manner.
Fluidity is building assets and stablecoins that reward users when they use them. Imagine trading on an exchange or paying back a friend and winning a life changing amount.
Fluidity allows cryptocurrencies to reward you when you use them.
From swapping on an exchange to participating in Defi — with Fluidity, every transaction provides new possibilities.
Chainlink is the most widely used and secure way to power universally connected smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralised community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across decentralised finance (DeFi), insurance and gaming ecosystems, among others.
Chainlink is trusted by hundreds of organizations to deliver definitive truth via secure, reliable data feeds. To learn more, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter. To understand the full vision of the Chainlink Network, read the Chainlink 2.0 whitepaper. Want to discuss an integration? Talk to an expert.