Though Fusion is probably most clearly defined as a layer 1 blockchain, I do think even asking about layers is kind of missing the point of what Fusion should achieve and its role in the evolution of the exchange and economy of cryptocurrencies.
After the Chainge cross-chain roaming and universal assets were introduced, Fusion became a bridge between multiple other chains. To truly understand it, let’s look at how cryptocurrencies have evolved:
- First there existed independent coin networks such as BTC, LTC, DOGE, etc. These could not interact and centralized exchanges were needed to handle trade between them.
- ETH changed the game with smart contracts and the ability to run multiple assets on the same network.
- BNT and UNI evolved the game through the invention of AMM DEXs. Others like MKR, COMP, AAVE lending platforms and decentralized stable coins. All important parts of how the DeFi economy could sustain and grow.
- It all became too expensive to use for most people, because lack of scale, a problem long known and even so alternative platforms failed to gain traction for a long time. Eventually however a couple of platforms such as BSC, Avalanche, Polygon and Fantom managed to gain traction and became viable alternatives to Ethereum. Copies and sometimes improvements of good things happening on Ethereum began evolving on these chains.
- To move between the networks bridges are needed. One of the most successful and earliest bridges was Anyswap, which later became known as Multichain.
- A complex system of multiple worlds evolved, which very few understood or could navigate in. In order to bring it together simplifaction is needed. It’s due to this that Chainge Finance was founded and chose Fusion as the network to setup its line of universal assets which could exist simultaneously across all chains which they could exist on.
After this last event I would argue that Fusion isn’t really any specific layer as such. Maybe it should be seen as the “Limbo layer” where assets sit in between chains. But that’s also not really right, because it is arguably the most useful place to keep assets due to low transaction fees and unique access to the time-framing of assets as well as trustworthy decentralized escrow contracts. If anything it should probably just be known as the “Fusion layer” where things come together and can be used in new innovative ways which can help extract time value from assets.
Something else that’s quite interesting on this topic is that the Chainge Liquidity Aggregator brings actual use to every layer much in the way that Ethereum layers were always pictured. Deep liquidity can be accessed on the very, very secure but expensive low layers such as Ethereum mainnet by the same contract that could also access the low fees on Polygon, HECO or Fantom if a swap is for a smaller sum of money. Liquidity providers can select what layer makes sense for them to provide liquidity on and be sure to remain relevant regardless, and swappers can easily swap in just one place and be sure to always end up using the liquidity that makes the most sense for them.