Overview

The Utility for Sustainable DeFi Liquidity

FlowFi is a revolutionary protocol designed to create profound and sustainable liquidity for DeFi and forthcoming tokenized applications expected to emerge in the ongoing growth of web3. Considered a decentralized market making platform and a liquidity distributor, FlowFi separates the traditional methods of liquidity provision and market making in DeFi. Positioned as a "layer above" decentralized exchanges, FlowFi enables control over the direction of liquidity flow, providing a simpler and more cost-effective method for both offering and obtaining liquidity.

The FlowFi Mission

The current landscape of DeFi is characterized by scattered, volatile, and costly liquidity sources. New project developers often face substantial expenses in their pursuit of liquidity solutions, typically through incentivized "pool 2's," which can deplete once incentives run out. The conventional practice of providing 50/50 paired liquidity is not only costly for an individual but also carries the risk of impermanent loss. Traditional market making solutions, though widely used, are not transparent for native DeFi developers, tend to centralize, and are expensive. Additionally, depending on whales for liquidity leads to constant uncertainty.

A lack of sufficient liquidity leads to poor pricing and increased volatility. This adversely affects projects/DAOs in need of substantial liquidity for their tokens, exchanges striving to offer optimal pricing, and individuals aiming to minimize slippage from their trades' price impact. Moreover, protocols that interact with other projects' tokens require stable liquidity sources.

With a promising future for web3, gaming, and the metaverse, FlowFi acknowledges that this future is closely connected to DeFi and, more specifically, to substantial liquidity for the tokenization of applications. FlowFi aspires to be the primary channel for liquidity in this tokenized future.