It is no hidden fact that I have been ardently following Fusion since its inception as a project. Like many, I have left the champagne on ice for now and have generally cooled my jets for a moonshot in 2020. Thoughts of a ‘lambo’ now deferred, I think it is a good time for an interim report on all things Fusion.
Community Spirit
There are two camps in the community. First off, are those that believe there should be rigorous efforts to maximise marketing activity particularly around listing on big exchanges like Binance and Coinbase. Then there’s the others who believe the key to growth lies with extensive coverage within a decentralised finance user-base effectively making apps like Anyswap and Chainge Finance synonymous with DeFi and Crypto Finance.
I believe the shot callers at Fusion understand that the underpinning issues that aggravate the disparaging commentary let loose in the telegram channels are not far fetched.
From an investment perspective, the figures are disappointing and efforts to assuage a price recovery from a marketing perspective have so far not had the visible impact of green candlesticks.
Market Outlook
There are many comparison articles with similar projects looking at interoperability. One of my favourite ones can be found here. Suffice to say, Fusion holds its own against the major players including REN VM and Polkadot but where it blows them away is in the area of decentralised custody. DCRM is the jewel in the Fusion crown and should be the industry standard for interoperability in my opinion. In terms of market capitalisation, Fusion is way off its rivals and as such is still a hidden gem.
Speaking of candlesticks the FSN/USD chart isn’t looking too bad from an entry point of view. The information below is a guide and I am no financial adviser but it certainly makes sense to do some research and join their telegram channel.
From the chart below, momentum indicators are turning towards positive: MACD cross seams inevitable with Stochastic RSI bouncing from oversold territory.
FSN seams to be finding support strong support at $0.21 and with BTC making a new ATH today, many believe a new bull market is ahead of us. Bottom could be in for $FSN and a bounce from the green trend line is a strong possibility.
With the momentum indicators suggesting a move upwards very likely we could expect a HL at this price and a bounce over $0.88 and creating a HH. The million dollar question is what would trigger this growth? With more D’Apps being developed and blockchain usage increasing we can only expect that price will follow adoption.
The last 2 times we had a bounce from oversold Stochastic RSI, $FSN price increased by 358% in OCT ’19 and 681% in summer of ’20. Hopefully the rest of the article while convince you why I think it could be a rewarding time to get some skin in the game.
Decentralised Applications
At the end of June 2020, with the WeDeFi app gaining traction in terms of users and the imminent launch on Fusion of Anyswap (a cross-chain decentralised exchange or DEX), hopes were high that the long awaited “summer of Fusion” was here. It was short-lived however, because of the demise of WeDeFi and the Anyswap launch did not go as planned. Many of the new entrants were jumping on the ‘DeFi hype’ of an Initial DEX Offering or IDO believing that TrustSwap level gains were all but guaranteed in this new “money spinner”. Sadly, many of these potential investors left to pastures new at least in the short term.
So what has happened since? Within the Fusion community there is a team of never say die believers. Every community needs avid supporters to battle though the rough patches of which Fusion has had quite a few. Have we seen the last of them? No, because price-wise we are still in the doldrums and community members are constantly having to fend off criticism from within on why seemingly simple measures like listing on a big exchange hasn’t been prioritised since.
OK, enough about price but I thought I should get that in because this article would not be balanced if I did not. Some of the other fundamentals make a more interesting read and will support a bullish argument as to why Fusion is still a good buy and hold.
Let us look on the good side of things because some phenomenal developments have taken place which if managed properly can actually put a huge smile on some faces in 2021.
ANYSWAP
So we all know that Anyswap is panning out to be the de facto platform for multi-chain swapping of crypto assets. No disrespect to the competition, but Anyswap was built on the premise of Fusion being the infrastructure built bottom-up to support crypto finance. With Fusion as the base protocol, Anyswap is able to leverage DCRM, Fusion Protocol’s interoperability and key management solution that enables disparate blockchains to seamlessly interact using secure MPC and TSS algorithms for signing. This means that Anyswap can harness all the features of Uniswap and the likes while introducing features of its own. Not only is Anyswap feature-rich in comparison, it also is cost-effective stemming from the relative cost of the Fusion coin to Ethereum in transaction fees.
So what has been going on at Anyswap then? Quite a lot actually. It is nice to bring in a mind-map shared in early November by Zhaojun the CEO of Anyswap to shed some light.
Initially launched solely on the Fusion blockchain, Anyswap within the first month was proving a force to be reckoned with, posting a 24 Hour trading volume of $7,790,000 with just one pair FSN/ANY compared to $80,762,295 on Uniswap with 661 pairs in July 2020.
It has since released a myriad of tokens based on the Fusion chain most notably anyBTC, anyETH, anyUSDT and anyUNI. Users marvel at the ease with which native coins can be bridged unto the Fusion chain and swapped with other tokens. Also worthy of note is share of 0.3% of the fee from the trade payable to yield farmers for adding to the liquidity pool as well as rewards in ANY tokens for the providers and also to users performing swaps on specific pairs. A summary of key information on rewards can be found here, a handy tool to track annual percentage yield etc.
Soon after the release of major tokens including the most relevant DeFi tokens, the Anyswap team proceeded to rollout its multi-platform support that would enable liquidity to traverse multiple native chains. This offered direct competition to Binance Smart Chain and Uniswap focusing on integration of BEP20 and ERC20 DEX features with the aid of DCRM. In addition, Fantom blockchain support has also been provisioned.
Switching between networks is not difficult via MetaMask, however a web and mobile version of Anyswap are in the works as are plans to roll out support to key wallet providers like TrustWallet. This should soon make it less tasking for new users and easier to move liquidity across multiple chains.
The cross-chain bridge really highlights the core feature of Anyswap allowing wrapped tokens to be minted using Fusion Protocol’s DCRM for secure and decentralised custody of deposited coins. With the Bitcoin bridge complete, Anyswap are harnessing more robust methods to ensure coins are listed quicker with Filecoin and Block Network being the next candidates. Newer methods are expected to incorporate the GG20 algorithm that enables distributed signatures to interact in a single hand-off, facilitating more node participation in the distributed key generation, larger thresholds and faster signing speeds. Also, BIP32 which enables every Anyswap user have an easy to use cross-chain unique deposit address will feature.
Anyswap also recently introduced staking on the Fusion chain with an easy ‘Stake’ button click triggering rewards commencing instantly and visibly with each block confirmation. This is in build-up to the release of ANY Working Nodes or AWNs which are DCRM alliance and community based nodes that will underpin the decentralised network.
The voting mechanism is also live, allowing ANY holders to vote on coin listings, AWN operators, changing governance rules and proposals and other platform based decisions.
All of these are features are expected to be fully functional in Anyswap V2 which will feature an new V2 contract based on Uniswap V2, Anti-front-run features to enable pricing to be consistent and direct pairs for greater price efficiency and more cost-effective swaps.
Zhaojun is already teasing V3 which is the full fledged Anyswap Router so there is lots more to be excited about.
In order to not make this an Anyswap only party, I will chime in with other goings-on on the Fusion ecosystem. DJ Qian the Fusion CEO, has stressed the importance of sustained growth through user adoption. WeDeFi was an aptly named D’App built on Fusion that served to build a user-base of DeFi enthusiasts by enabling staking and low risk betting using time-locked Fusion tokens. Its popularity however was short-lived owing to scalability issues which were meant to be addressed in a new version. Cue Chainge Finance.
CHAINGE FINANCE
Chainge Finance is a new D’App being developed and positioned to take some of the best features of WeDeFi while introducing an automated solution for simplifying complex financial operations securely. A Bank built on smart contracts and automation sounds very compelling. The Chainge Token CHNG, will be used to drive user growth by offering the token for free in return completion of activities aimed at growing its user-base. These activities will underpin and effectively ensure that the Fusion Protocol will achieve sustained growth and serve also to unlock features within the Chainge Finance D’App. Profit from use of the application will be used to buy back Fusion tokens benefiting the entire ecosystem.
There is an overwhelming sense of optimism for Chainge Finance mostly driven by the key features it can leverage from the Fusion Protocol that underpins it. Chainge Finance hopes to showcase DeFi in all its glory to the world, building itself up decentralised and secure Digital Bank positioned to meet your evolving needs. These are very early days for Chainge Finance as we brace ourselves for what will be unleashed. A good development all the same for the ecosystem.
FUSION
On the Fusion mainnet there is a lot of development ongoing including:
- Decentralised Oracle focusing on the integration of Chainlink with Fusion mainnet
- DCRM GG20 and mainnet integration being researched and developed by 4 world-class cryptographers to improve DCRM speed up to 10x.
- Time-lock and Quantum Swap support for all assets running in smart contract is also being researched and developed.
- Mainnet upgrade to implement some bug fixes and increase the gas limit to an appropriate level.
Tools
While development has been progressing with Anyswap and while we await Chainge Finance with huge anticipation, we cannot look past the effort of the Fusion community as they deploy handy tools improve the Fusion experience.
First mention has to go to FSNEX which is now the explorer of choice for the Fusion blockchain. Latest updates have on FSNEX have been geared towards improving performance and supporting Anyswap features including
- Smart contract support.
- Tokens transfers capture.
- Token balances capture.
- Anyswap swap and bridge actions.
- Smart contract verification i.e. compiling uploaded source code for comparison against bytecode found on the blockchain.
- Dark mode support.
- Label browser to look up labels added to addresses and tokens on Fusion.
FSNEX team also developed fusionmining.org an informative site for all things to do with mining on Fusion including VPS setups and pools.
Other tools of note include a browser based wallet called Whallet that is being developed to support Fusion core features like time-lock and cross-chain asset swaps.
Marketing
The Fusion ecosystem profile is still low in comparison with similar projects in the interoperability space. Indeed there have been mentions by top YouTube influencers like Ivan on Tech, Chico Crypto and Lark Davis but can visibility go much further?
There are over 50 articles doing the rounds on various platforms that mention Fusion and/or Anyswap with SEO is making them highly visible during searches. A big question is how do Fusion, Anyswap and Chainge Finance distinguish themselves from the myriad of interoperability protocols, and food tokens and other projects that pivot from their whitepaper and are now masquerading as DeFi?
While there are good developments, there is still a lot of room for improvement particularly on branding & marketing like revamping the website which has not really changed in two years for example and providing clear documentation to significantly improve development experience and expanding value.
There is no disguising the fact that Fusion has superior tech and they prefer to show what they can do. This is evident with the adoption score of the Fusion chain available on coinstats.network. Fusion comes in at a humble 13th with a $12M market cap when comparing transaction volume with other projects that have $multi-billion market capitalisation but leads the class in adoption score.
If there are any projects that needs to break into the spotlight, Fusion and Anyswap are ripe for the pickings. Much is needed to raise their profile amidst the plethora of projects vying for market share. More projects are requesting to be listed on Anyswap which is good. However, these also need to bring with them liquidity required to keep prices competitive. Also, there have been recent discussions about finally getting Binance to list Anyswap and Fusion more so as Anyswap is integral to the Binance Smart Chain. If this happens we can expect greater exposure for Anyswap and Fusion. Coupling this with the release of Chainge Finance, we should expect a good showing in terms of growth. In the same vain, showcasing the power of Fusion, enabling developers easy access to documentation and a fully informative website and good information flow with the community will certainly make Fusion a force for optimism in the next bull run.
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