Fluid Vault Smart Contracts - Deep Dive on

Introduction

Mon, 01 Jan 0001 00:00:00 +0000

Overall architecture

Let’s take a peek at overall Fluid architecture:

We can see liquidity at the center, with a few other components branching from there. This is how Fluid can keep iterating faster, as they don’t have to bootstrap liquidity for new products (we can also call them consumers). Liquidity is aggregated in one contract which is handy if you have multiple versions of the protocol, as you don’t have to wait for years for users to migrate to newer versions, you just reuse the liquidity from before.

BigMath Library

Mon, 01 Jan 0001 00:00:00 +0000

Before we dive into main flows, it’s worth exploring how Fluid stores and works with numbers.
In order to compress numbers, Fluid uses a custom-made BigMath library that stores numbers with a coefficient and exponent.

number = coefficient << exponent

Let’s take an example from the Fluid codebase for the decimal number 5035703444687813576399599. Storing that in binary we get:

10000101010010110100000011111011110010100110100000000011100101001101001101011101111

Now if we take a coefficient of 32 bits and an exponent of 8 bits, the same number gets represented like:

Finish

Mon, 01 Jan 0001 00:00:00 +0000

Congratulations! 🎉🎉🎉 🌊🌊🌊

We just finished this long deep dive on Fluid internals.

I hope you learned something new. I certainly did while writing all of this, and I hope that different tricks and complex liquidation design will stick with you once you read future protocols and innovations out there.

The good thing is that typical DeFi projects out there are not this complex to reason about, so if you really grasped how Fluid works and struggled through the code with me, you are really well prepared to just go out there and read and reason about any codebase.