RIADeFiPublished by Ketju Research
Not approved · Dollar lending

Ketju memo: Fluid (Instadapp)

Not approvedPublished by Ketju Research

This memo sets out what the holder owns, who controls it, how holders could lose money, and whether a position can be sold. The advisor decides any client action and amount. Not investment, legal, tax, or compliance advice.

Summary

Ketju does not approve Fluid: it absorbed $19.3M to $21M of bad debt from the Resolv collapse in 2026, and two of its main safety claims did not check out. In late March 2026 an attacker compromised Resolv Labs' off-chain signing keys and minted about 80M unbacked USR. Discounted wstUSR entered Fluid markets through stale oracle pricing, and roughly $100M of USR collateral stood against USDC and USDT borrows. The settlement closed on 2026-05-11: Resolv paid about $9.7M, the Fluid governance treasury $8.2M and the team $1.5M from future revenue. Users were made whole, and no Fluid contract was itself exploited. One Liquidity Layer serves every Fluid market, so a market's label does not isolate a supplier from losses elsewhere. No Trail of Bits or Certora report on Fluid exists in either firm's public index, and the official docs list PeckShield, Statemind, MixBytes and Cantina. TVL fell from a $2.68B peak on 2025-10-08 to $802.6M on 2026-08-14, with $752.5M borrowed, so free liquidity is thin.

Review triggers

  • Ketju reviews Fluid again only after market-level primary accounting proves that no held USDC, USDT or WETH supplier balance absorbed Resolv bad debt through the shared Liquidity Layer
  • Ketju reviews Fluid again only after every live binary in a held market matches a published PeckShield, Statemind, MixBytes or Cantina review, and any claimed formal verification is linked
  • Ketju reviews Fluid again only after the Guardian, team multisig, signer thresholds, upgrade paths and timelock delays are reproduced on-chain for every approved chain
  • Ketju reviews Fluid again only after withdrawals of the proposed size from each named reserve succeed while free liquidity exceeds $10M and trailing-30-day utilization stays below 90%
  • Ketju reviews Fluid again only after the post-Resolv oracle overhaul is deployed and matches a published specification and audit; any new bad debt or key compromise keeps Fluid not approved

Facts

Verdict
Not approved
Type
Dollar lending
Chains examined
Ethereum, Arbitrum, Base
Instruments
USDC, USDT, WETH
Reviewed
Last confirmed

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