Fluid Lite

Fluid Lite receives a B- risk grade (30/100) from Hindenrank, where lower scores indicate lower risk. Fluid Lite offers an efficient, automated way to earn amplified ETH staking yield, but users must understand they are accepting leveraged risk exposure across multiple DeFi protocols. The stETH recursive leverage strategy has been stress-tested through multiple market cycles, but a severe stETH depeg would cause significant losses. Best suited for users who understand leverage and are comfortable with multi-protocol dependency risk. Fluid Lite (formerly Instadapp Lite) is a set of automated yield vaults that earn you amplified staking returns on ETH. The vaults work by staking your ETH through Lido to get stETH, then using that stETH as collateral to borrow more ETH and repeat the process — multiplying your staking yield through leverage. The strategy runs across multiple lending protocols (Aave, Compound, Morpho) and automatically rebalances to optimize returns.

The key risks identified for Fluid Lite are: (1) Your returns are amplified by leverage — this means losses are amplified too. A small drop in stETH value gets multiplied 3-4x (2) Your money is spread across multiple DeFi protocols — a hack of ANY one of them could lose part of your deposit (3) Automated rebalancing bots control your money — if they malfunction during a crash, losses could be worse than expected (4) There is a 0.05% exit fee that discourages withdrawal during emergencies, potentially trapping you in a losing position

Fluid Lite scores 30/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 8/20, Oracle Surface: 3/10, Documentation Gaps: 2/10, Track Record: 3/15, Scale Exposure: 5/10, Regulatory Risk: 2/10, Vitality Risk: 4/10. The highest risk area is Scale Exposure at 5/10.

Among 116 rated Yield protocols on Hindenrank, Fluid Lite ranks #25 by safety (lowest risk score = safest). Its 30/100 risk score and B- grade place it among the safer Yield protocols.

Fluid Lite scores 3/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.