Faqs

Frequently Asked Questions

1. Where can I read about delegation, and what does it involve?

Delegation involves manually staking $FLDT tokens to a validator node address, keeping tokens in your wallet with the option to unstake anytime. It supports the FluidTokens Validators Network (FTVN), rewarding validators with transaction fees in ADA and CNTs. 

2. What’s the earning potential on an Aquarium node, and what are the options for participation?

As of July 2025, Aquarium nodes earn around 5,000-10,000 ADA monthly in total. Validators stake $FLDT to share transaction fees in ADA and CNTs. Alternatively, delegate $FLDT to a node and split rewards without managing maintenance.

3. Will perpetual lending on FluidTokens use isolated pools, and how does it work?

The FluidTokens Perpetual lending utilises isolated pools, similar to Boosted Stake, which aggregates lenders’ ADA to offer borrowers the best rates. Lenders set APR, duration, and amount, earning 3–5% APR when not borrowed, while retaining control. 

4. What are the risks of staking ADA for FluidTokens’ Boosted Stake feature, and is the APR only 3%?

Boosted Stake lets you deposit ADA as collateral for lending, earning up to 9.3% APR (vs. 2–3.5% for standard Cardano staking) by combining staking and lending interest. Risks include 

  • Inability to withdraw ADA during borrowing, 

  • smart contract vulnerabilities, 

  • platform issues. 

FluidTokens minimizes risks by imposing the following measures:

  • Non-spendable ADA - the borrower can only use the delegation rights, without being able to withdraw & spend the ADA locked in the FluidTokens smart contract.

  • Upfront interest - the borrower pays the interest upfront, ensuring the lender will get paid

  • Automatic returns - 

5. What are the risks of the FluidTokens native staking?

The FluidTokens native staking refers to delegating ADA to Cardano stake pools within FluidTokens’ ecosystem, earning 3–5% APR with no lock-up or slashing. Risks are minimal but include pool performance issues (e.g., lower rewards from poorly managed pools) and ADA price volatility. Select a reputable pool and use a non-custodial wallet to stake safely. 

6. How do collateral, interest rates, and interest accrual work in FluidTokens’ lending protocol?

In FluidTokens’ lending protocol, borrowers supply collateral (e.g. ADA) to borrow principal. Interest rates are dynamic, increasing over time to encourage borrowers to repay or refinance their loans. Lenders receive a receipt token (NFT bond) that accrues interest quadratically, increasing with the loan duration, allowing for easy tracking without waiting for borrower payments. 

7. Is staking on Aquarium non-custodial, and can I unstake $FLDT at any time?

Aquarium staking is non-custodial; you lock $FLDT in a smart contract, but only you can unlock it. Validators use staked $FLDT to process transactions but cannot spend them. The only risk is smart contract failure, and you can unstake it at any time.

8. What are the rewards and lockup options for FluidTokens native staking?

FluidTokens native staking offers a no-lockup pool with 3% APR, paying rewards only in $FLDT. Eight-month and four-month lockup pools may be available in the future, but no plans exist currently. 

9. Do I miss Cardano staking rewards if my ADA isn’t borrowed in Boosted Staking?

No. When you deposit your ADA in the Boosted Stake smart contract, you continue earning Cardano staking rewards regardless of whether your ADA is utilised or not.

10. What’s the APY for FLDT staking?

FLDT stakers earn a 1% APY in ADA and 3% APY in FLDT through token emissions, adding approximately 300,000 FLDT annually to circulation if 10M FLDT are staked (0.3% of total supply). They also receive 50% of FluidTokens’ platform revenue, including Bitcoin bridge revenue, distributed proportionally based on the amount staked in $FLDT.

11. When I liquidate a loan, do I receive payment in the collateral token?

Yes, but we will soon integrate a feature that allows users to automatically convert collateral to ADA or stablecoins, thereby avoiding the price fluctuations of native tokens.

12. If I lend my ADA in a perpetual contract to multiple pools, when do I get paid interest?

The borrower can pay whenever they want, but the APY will grow over time, so the longer it takes to pay, the longer the APY will grow. The borrower will repay the loan shortly to keep his APR low.

13. How can I pay the interest of a loan?

Navigate to the Borrows tab in the Dashboard section and select the Manage borrow button.

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