Cryptocurrency Payment Infrastructure: Fuse Network ($FUSE)

What is Fuse?

Fuse Network is a public blockchain that is compatible with Ethereum’s EVM and focuses on payment. On top of that, it also offers stablecoin issuance and management. Aimed at providing low-cost Web3 payments for users, Fuse eliminates certain development challenges. All SDK documents provided by Fuse are open source. Its solutions include abstract wallet accounts and efficient Web3 payments. Fuse consists of three main components: the Fuse Network blockchain, a mobile open-source technology stack, and DeFi products and tools.

According to the latest data from the official website, Fuse has already processed 135 million transactions. Over 150 projects have been integrated into the Fuse ecosystem, with a readiness rate of 99.99%. Moreover, the cost per ten thousand transactions on Fuse is only one dollar, demonstrating its remarkably low payment costs, which are almost negligible.

Project Background of Fuse Network (Source: www.fuse.io/)

Project Background

Founded in 2019, Fuse Network’s team, consisting of over 40 members, is predominantly based in Israel. CEO Mark Smargon, a pioneer in Israel’s Bitcoin exchange sector, has been an entrepreneur for over 20 years, starting his first venture in 2001. CTO Leon Prouger has been a long-term collaborator with Smargon, working together since Smargon’s previous company. CMO Emmanuel Ebanehita has experience working with Binance.

In May 2022, Fuse completed a $5 million funding round with investors including Aleph, Black Edge Capital, Blockchain Founders Fund, Collider Ventures, and Tectona Digital Assets.

The Blockchain of Fuse Network

Fuse aims to scale cryptocurrency payments and DeFi applications. Its core components include the Fuse mainnet compatible with Ethereum’s EVM, generic components, and a suite of generic DeFi products. The total value locked in the Fuse network is $1.83 million, and its native token, $FUSE, has a market cap of $16.52 million.

Latest Data from Fuse Network (Source: www.defillama.com/chain/Fuse)

Consensus Mechanism

Fuse Network utilizes a unique Delegated Proof of Stake (DPoS) consensus model, incorporating the concept of delegators - token holders who participate in the consensus process without running a node. Delegators stake their Fuse tokens to selected validators, enhancing their network influence. Validators and delegators earn block rewards, proportional to their stake.

Node operators need only meet technical requirements and stake a sufficient amount of Fuse to participate. Validators violating consensus rules, like non-disclosure of randomness, risk having their staked Fuse frozen. Currently, the maximum number of validators on the Fuse Network is capped at 100. Validators earn newly minted FUSE tokens as rewards for block production and receive transaction fees from block transactions.

Staking Mechanism

Fuse sacrifices some security and decentralization in its blockchain trilemma to gain speed and scalability. To protect the network and join as a validator, operators must stake a minimum of 100,000 Fuse. Being a validator on Fuse is permissionless, requiring specific technical criteria. The maximum stake per node is 5 million Fuse. Currently, half of FUSE’s total supply of over 200 million is staked on the official platform. Users can stake on any node on the platform, with a 15% reward rate.

FUSE Staking (www.console.fuse.io/staking)

Mobile Components

Fuse Studio, as described on the official website, is a mobile component offering front-end, back-end, and API services for apps. B2B enterprises can quickly issue tokens using these components without coding, or managing simple token communities. Enterprises can also create dedicated apps for these tokens, streamlining the entire process.

Fuse Studio aims to expand the DeFi community on the Fuse network. Studio API provides blockchain data query services and transmits complex transaction information to users.

Fuse 2.0 Version

Fuse 2.0 will shift its focus to Web3 payments, developing a cost-effective, private, fast, scalable, and secure platform. The Fuse V2 upgrade involves three main components explained below.

Introduction of Power Validators

Decentralized, coordinated business layers are crucial for enterprises. Fuse introduces Power Validators to provide basic services such as transaction relay, operating oracles, token cross-chain bridges, layer-2 network expansion, and decentralized storage nodes. In the Fuse Stack, services like relayers, account management, wallet API, and validation rely on various middleware services external to on-chain logic. Power Validators support the payment infrastructure of the Fuse platform, actively validating transactions, and further decentralizing business processes by running additional trustless middleware (as part of the Fuse network) atop existing validator roles.

Power Validator (Source: Fuse Whitepaper)

Adding a Zero-Knowledge Proof-Based Execution Layer for Private Transactions and Enhanced Scalability

Fuse V2 will introduce a zero-knowledge proof-based execution layer to enable private mobile transactions and enhance scalability. Privacy is crucial for businesses, communities, or organizations using blockchain technology. Therefore, Fuse adds zero-knowledge proof technology to preserve private data on a public blockchain. Utilizing decentralized storage as an off-chain data layer makes operations more efficient without the need to store ledger history on every node. Instead, it can be divided among instances and run by Power Validators. This helps users open private accounts and conceal cash flows. Furthermore, scalable private transactions will expand enterprise adoption of Web3 payments.

Transition of Fuse Network Blockchain to a New Consensus Mechanism

Fuse will create a sustainable token economy model, providing strong incentives and ownership for all participants in the Fuse ecosystem. The Fuse Network redefines Web3 payment methods and lays the foundation for innovative business models and economic growth.

Fuse Ecosystem

The “Fuse Ignite” program has propelled the ecosystem’s growth, providing funding and technical support to projects. Over 150 ecosystem projects are currently integrated on Fuse, including decentralized finance (DeFi) platforms, NFT marketplaces, oracles, wallets, etc. Due to Fuse’s Ethereum EVM compatibility, renowned Ethereum chain projects like SushiSwap, DIA, IcecreamSwap, Via Protocol, Frax Finance have rapidly migrated to the Fuse chain, actively promoting the ecosystem’s development.

Fuse Ecosystem Partners (Source: Fuse Ecosystem)

DeFi Platform Voltage Finance

Voltage Finance (formerly FuseFi), a DeFi platform based on the Fuse Network, supports DeFi transactions, lending, etc., providing users with a one-stop DeFi ecosystem platform. It facilitates automatic token trading on the Fuse chain through an Automated Market Maker (AMM). Additionally, Voltage offers farming and staking, helping users earn extra income. Staking $VOLT earns veVOLT tokens, granting governance rights and other benefits. Participating in sFUSE liquidity staking and staking $FUSE earns high APY, benefits from auto-compounding, and other DeFi staking opportunities.

Voltage Finance Official Website

Cross-Chain Bridge Allbridge

Allbridge, a decentralized cross-chain bridge, provides fast, low-cost, and secure asset interactions between EVM, non-EVM, and Layer2 networks. Its flexible infrastructure supports various transfer types, enhancing its universality. Users can choose between Wormhole and Allbridge for message transmission. In the second half of 2023, Allbridge received a $2 million investment led by RaceCapital. It has connected over $480 million in assets, making it one of the largest cross-chain asset bridges in the market.

Allbridge Official Website

NFT Marketplace Artrific

Artrific, the first NFT marketplace on the Fuse network, offers peer-to-peer trading services, providing users with a secure and convenient trading venue. Users can mint, buy, sell, and bid on millions of NFT assets on Artrific, using $FUSE for interaction fees and purchase costs.

Artrific Official Website

Fuse Stablecoin FuseDollar (fUSD)

FuseDollar (fUSD) is a dollar-pegged stablecoin minted on the Fuse network, fully backed by USDC. fUSD is an interest-bearing stablecoin, as holders can earn 5% APR on their fUSD held in the Fuse Cash app. The maximum supply of fUSD is 3,055,595.527, with 4,709 token holders.

fUSD Official Data: Fuse Explorer

Fuse Token Economy

$FUSE is an ERC-20 token and the native token of the Fuse Network, mainly used for paying transaction fees or participating in the Fuse chain staking mechanism. According to Coingecko, the current total supply is over 200 million, half of which are staked on the official platform.

FUSE Token Data: CoinGecko

Use Cases

• Transaction Fees: As the native token of the Fuse Network, users must hold $FUSE to pay gas fees for transactions.
• Validation: $FUSE holders can choose to stake their tokens to become validators, with a minimum staking amount of 100,000 $FUSE. Currently, there are over 60 validators.
• Voting: $FUSE holders can stake their tokens to gain voting rights. Validators have significant voting rights on network upgrades and governance changes.
• Staking (for Delegators): All $FUSE holders can delegate any amount to one or more validators. Their share of Fuse block rewards is proportional to their stake in the total, minus a minimum 15% fee paid to validators.
• Payments: $FUSE offers faster transactions with lower fees.

A new block is created every 5 seconds on the Fuse network, rewarding the block creator and their staking delegators with newly issued $FUSE tokens while ensuring the security of the consensus mechanism. Furthermore, FUSE can support liquidity mining rewards, enhancing DEX liquidity and participation in Fuse lending.

How to Buy $FUSE

To acquire $FUSE tokens, you can purchase them on cryptocurrency exchanges, such as the reputable Gate.io exchange. Create a Gate.io account, complete the KYC process, deposit funds, and you can directly purchase $FUSE tokens.

Conclusion

Fuse Network, as a foundational infrastructure in the Layer1 payment track, offers new payment and transaction methods and convenient development tools for businesses. The Fuse ecosystem is relatively comprehensive, covering various fields like DeFi, NFTs, lending, wallets, and stablecoins. As a public chain in the payment track, Fuse’s focus remains on its payment system, with its own network and developer tools. According to the official roadmap, the Fuse Network will continue to integrate into businesses, helping entrepreneurs launch effective and sustainable products utilizing mobile payments.