> ## Documentation Index
> Fetch the complete documentation index at: https://docs.fiet.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Fiet Protocol

> Discover how Fiet bridges traditional finance and DeFi with dynamic, verified liquidity.

Fiet is a decentralised liquidity commitments protocol that transforms decentralised finance (DeFi) by enabling market makers to provide liquidity to automated market makers (AMMs) without locking funds on-chain. Using cutting-edge zero-knowledge proofs (zkTLS), Fiet verifies liquidity held in banks, exchanges, or wallets, creating deeper, more cost-efficient markets for trading, foreign exchange, and real-world assets.

<Card icon="square-check" horizontal>
  Fiet empowers secure, capital-efficient markets, reducing trading costs and
  enabling new opportunities in DeFi.
</Card>

## Why Fiet?

DeFi markets often face liquidity challenges, leading to high slippage and costly trading. Fiet solves this by allowing market makers to commit **verified reserve liquidity** — funds held off-chain or on-chain without locking them in AMM pools. Through instruments, *akin to a hybrid standby letter of credit and warehouse receipt*, ensures traders access deep liquidity while market makers retain flexibility.

* **For Traders**: Enjoy low-cost, low-slippage trading in markets like local stablecoins (e.g., AUD, BRL) or tokenised RWAs (real estate, private credit, etc.).
* **For Market Makers**: Commit dynamic liquidity now, settle later — earning fees without capital lockup or impermanent loss risks.
* **For DeFi Ecosystems**: Enable totally new and lower cost liquid markets without bootstrapping retail liquidity with absurd incentives and requiring upfront total value locked (TVL).

<Tip>
  Learn how Fiet powers on-chain foreign exchange and real-world asset markets
  in our [Use Cases](/use-cases).
</Tip>

<img src="https://mintcdn.com/fiet/l7HeB16zLN0-RTe-/images/Fiet-Protocol---Simple-7x.jpg?fit=max&auto=format&n=l7HeB16zLN0-RTe-&q=85&s=3aa718c3885b4eaa3973532f8f187360" alt="Fiet MM - Market Connection" width="100%" height="auto" data-path="images/Fiet-Protocol---Simple-7x.jpg" />

## How It Works

Fiet integrates traditional finance (TradFi) and DeFi through a simple, secure process:

1. **Liquidity Verification**: Market makers use zkTLS to verify reserves in banks or exchanges, ensuring trust without exposing sensitive data.
2. **Liquidity Commitment Certificates (LCCs)**: Protocol-bound non-transferable tokens represent committed liquidity, traded only in Fiet’s integrated decentralised exchanges (DEXs).
3. **Dynamic Settlements**: Liquidity is settled on-chain only when market demand requires it, guided by the Value-to-Signal (VTS) model.
4. **Guaranteed Continuity**: Settlement Guarantors step in if market makers fail to deliver, ensuring market stability.

<Note>
  Fiet is built on Arbitrum, with plans for cross-chain expansion, making it
  accessible across DeFi ecosystems.
</Note>

<Frame caption="Fiet’s Liquidity Flow">
  <img src="https://mintcdn.com/fiet/l7HeB16zLN0-RTe-/images/Fiet-Protocol---Simple-Liquidity-Flow-Annotated.jpg?fit=max&auto=format&n=l7HeB16zLN0-RTe-&q=85&s=d7e37252cb4a319c900b6769f244a79f" alt="Fiet Liquidity Flow" width="100%" height="auto" data-path="images/Fiet-Protocol---Simple-Liquidity-Flow-Annotated.jpg" />
</Frame>

## Get Started

Explore Fiet’s potential and join our growing community:

* **[Use Cases](/use-cases)**: See how Fiet enables cost-efficient trading and new markets.
* **[Roles](/roles)**: Learn how to participate as a market maker, trader, or future governance member.
* **[Technical Specification](/resources/technical-specification)**: Dive into the full details of Fiet’s mechanics.
* **[Join the Community](https://go.usher.so/discord)**: Connect with us on Discord to share ideas and get involved.