FluidTokens Prepares V4 With Automated Liquidations on Cardano

FluidTokens announced on September 1 that V4 was ready for release and invited users to help improve the product through its development application. The team has not specified a production launch date for the next version of its Cardano lending protocol.

FluidTokens enables users to lend assets or borrow against collateral. Its V4 plans extend those services with automation for operators and additional ways for lenders to exit active positions.

Aquarium Operators Handle Automated Liquidations

According to the team, Aquarium operators will be able to run bots that liquidate positions when the required collateral conditions are no longer met. Operators would receive fees for processing those actions.

FluidTokens has linked participation to Aquarium node operators holding $FLDT. The team said it would act as a backstop if an eligible position remained unliquidated for too long.

V4 documentation also describes automatically returning repaid principal to lending pools. Bots could perform that step for a fee, making the funds available for new loans without requiring lenders to reinvest them manually.

The announced role of $FLDT concerns this operator infrastructure. No holding requirement has been specified for ordinary V4 borrowing or liquidity provision.

V4 Design Expands Loan Position Management

The V4 design allows a lender to sell a loan position to a compatible pool for its principal amount. This provides a potential exit before repayment is complete, provided a pool has sufficient liquidity and accepts the loan under its terms.

For borrowers, the documentation includes an optional restriction that prevents a loan position from being transferred to another holder. When enabled, the restriction keeps the borrower’s position with its existing holder.

These features build on an established lending framework. Static and dynamic pools, along with borrowing from multiple pools in one transaction, already appear in V3 documentation and are carried into the V4 design.

Community Feedback Precedes Production Release

The development application shared by FluidTokens includes sections for markets, deposits, borrowing and custom loans. Its underlying network and enabled transaction functions have not been confirmed, so the invitation does not establish that V4 lending is available in production.

The smart contract code is public, with documentation describing the planned loan operations. A public final V4 audit report had not been located as of September 4.

The existing production application remains on V3. FluidTokens has not yet announced whether existing pools and outstanding loans will require migration or published instructions for moving them to V4.