Individual Pirate

Why did I create FUSE, and what do I hope it can achieve?

I feel that I might need to explain myself more to the Fusion community, what exactly I hope to achieve with FUSE. FUSE is just a token after all. And some might, for example, be asking themselves, 1.There’s nothing special with it, as such, right, what’s the value? or 2. Is this not just another token that might further devalue FSN in a similar way that ANY might have already done? And therefore feel reluctant to do anything with it. or 3. Who will buy this?

Answer to 1: It is correct that there’s nothing special about FUSE, it is simply a token with a stagnant supply without any advanced qualities. But you can do many of the same things with it that you can do with any other crypto. 1. You can sell it 2. You can buy it 3. You can provide liquidity. This third option is new for most of crypto but is also the main reason why FUSE is interesting. Many other cryptos have also a 4th option (staking), or some other mechanisms which inflates the supply to the gain of some form of party (miners, founders, active participants, liquidity providers, etc, etc). FUSE does not have this. The supply is set and non-inflationary, which in my opinion makes it all the more interesting and reliable for liquidity provision.

There is also one thing that I do think is special about FUSE and this is the conditions under which it has become available to the market. It has been airdropped evenly to all holders/stakers (not liquidity providers) of FSN on the Fusion blockchain without anyone really knowing it was coming and without any special allocation to creators. Therefore, as a creator, if I do want more than my initial share I need to buy it in the same way as anyone else would have to. Immediately after this it was available for trading on AnySwap if you input the contract address 0x20dd2f2bfa4ce3eaec5f57629583dad8a325872a . So, nobody ever had to wait on anything. It was just:Here you go: sell it, buy it or provide liquidity. There might be other instances of similar fair airdrops, but on the Fusion Blockchain coupled with immediate market presence, it was certainly a first.

FUSE currently also has a promise of 10 000 FSN airdropped liquidity providers of FUSE/FSN if a minimum of 1 FUSE is in liquidity at an evaluation of 500 000 FSN. This “prize” is quite small compared to the 500 000 FSN in liquidity at that point and would not be that big a deal for the liquidity providers at the time. But what I wanted to achieve with this is prize is to set a goal for where I want FUSE to go. This is what I want to see happening, and I want those who helped bring it there to profit in the journey. Currently 1 FUSE is worth a “mere” 150 000 FSN, which means there’s much more of a potential upside in the price goal. The more important goal, however, in my opinion is the liquidity goal of 1 FUSE, because this would mean that 50% of the entire supply is in liquidity making FUSE and incredible liquid asset against FSN, practically fusing the assets together as long as that liquidity remains. If FSN goes up in price, so too will FUSE by more or less exactly the same %. This however only really becomes reality if the Fusion community does it together. It’s not the same if 1–3 people buy up enough FUSE to get it to this point, as if 100 or more people decide to provide liquidity for it. Therefore I really hope more people decide to provide liquidity for FUSE/FSN. If you got the airdrop it’s just to do it, you have the FUSE and you have the FSN, no need to buy anything. And the main reward will be more FUSE, FSN and ANY that you earn from providing liquidity.

Answer to 2:

For now FUSE can impossibly hurt the value of FSN, as you can only buy FUSE with FSN and you can only sell FUSE into FSN. If anything it could help make FSN more attractive, since it makes the Fusion Blockchain look more alive with actual market available assets running on it. Admittedly it’s possible to see a future where it could draw attention away from FSN though. Once AnySwap v2 comes, it’d also be possible to provide liquidity for FUSE against assets other than FSN. Also with AnySwap routing FUSE could come to exist on other blockchains and versions of AnySwap and even on other DEXes. Though such developments might be bullish for FUSE as an asset, they do lie outside the main goal of why FUSE came to be. This goal was for it to be a highly liquid asset against FSN that was freely given to Fusionites and therefore I want to make it clear that for the 10 000 FSN prize to become airdropped, the liquidity of 1FUSE at a price of 500 000 FSN has to be liquidity in a FUSE/FSN pairing. Liquidity pairings against other assets won’t count. Hopefully this incentive can help keep FUSE be FSN focused even as more options become available.

Answer to 3:

So, far the only thing I can say with certainty here is that I’ve been buying it extensively, and I plan to continue with this as long as I see some level of hope of achieving the goal of FUSE. But I do also want to share one of the reasons as to why I chose not to distribute FUSE to FSN that was already providing liquidity. The reasons for this was many, but one of them was that these FSN might be considered to be the most acive FSN in terms of doing things with AnySwap and as such they are the most likely to end up buying FUSE, but had they on the other hand been included they had instead been the most likely to sell FUSE.

And selling FUSE is, not that bad an idea if you’re unsure what to do with it and just want some free FSN. In fact I’d encourage everyone to do one of two things. 1. Add it to liquidity. 2. Sell it. Of course I prefer you do option 1, but this is something you should decide on your own.

The faster people do one of these two things, the faster FUSE becomes what it was intended to be, an asset that’s tied very closely to the price of FSN in its price performance and which can be a very reliable way to provide liquidity on AnySwap without risking impairment loss of FSN.

IndividualPirate became interested in the Fusion Blockchain around the time it launched mainnet. Deeply interested in governance and liquidity.