Fusible

What is Fusible?

We believe that creators and collectors can benefit from a better pricing mechanism. Auctions are a sub-optimal mechanism of discovering prices for creators and collectors. Curve-based pricing mechanisms work better to attain equilibrium points between supply/demand.

At Fusible, we took a folio out of Bancor’s formula and have modified it to draft the first version of Price Discovery Protocol for NFTs.

Bring better liquidity to your NFTs by fractionalising your NFT and creating pools on AMM.

Buyers can now own a fraction of an NFT and benefit from price appreciation.

Fractionalising NFTs into FT tokens will bring in more liquidity and price action to your creations and collectibles.

Fusible is an experimental NFT pricing protocol built on BSC where creators can liquefy their NFTs and create pools on Fusible and AMM for curve based pricing. This will enable various mechanisms through which the creator can implement immediate liquidity and the faucet can quickly implement price action.

We believe that creators and collectors can benefit from a more convenient pricing mechanism. Auctions are a suboptimal pricing mechanism for authors and collectors. Curve-based pricing mechanisms work better to achieve equilibrium points between supply and demand. We took a folio from the Bancor formula and modified it to draft the first version of the Price Discovery Protocol for NFT.

Auctions have been the most popular way to trade NFTs on the most popular platforms. While auctions provide an excellent price discovery mechanism, they are not as efficient as a traditional open bid based bid/request mechanism.

The inherent limitation of having an open ledger for bids/NFT bids lies in the very nature of NFTs, which is not interchangeable.

The time factor is another limitation that the auction suffers from. Creators must either settle for the highest bid received in a given time period (potentially leaving money on the table) or be forced to wait indefinitely for liquidity until a bidder appears and matches the ask.

DeFi, liquidity pools, and DEXs have now given us new ways to look at price discovery from different angles.

1. Liquefy your NFTs. Increase the liquidity of your NFTs by splitting NFTs and creating pools on Uniswap.

2. Improved disclosure price. Don't limit yourself to a small auction audience.

3. Possibility of fractional ownership. Buyers can now own a stake in NFTs and benefit from higher prices.

4. Liquid marketplace. Splitting NFTs into Fungible tokens will boost liquidity and boost the price momentum of creator creations and collectibles.

We at Fusible are exploring various mechanisms by which a creator can implement immediate liquidity and a faucet can quickly implement price action.

The result of this study is the release of version 1 of the Fusible Price Discovery protocol.

The NFT liquefaction process consists of 3 steps:

1. NFT deposit;

2.Fuse Process (Mint FT for deposited NFTs);

3. Initialize initial liquidity.

The user receives the address of their NFT contract and provides it as input to the Fusible contract. They also provide the NFT token ID as input to the Fusible contract. Upon successful deposit, a new floating deposit receipt hash is generated and provided to the user.

The user provides the following input to the process:

1.Fusible Deposit Receipt hash (generated in the previous step);

2. Desired FT name to be generated;

3.Desired total amount of generated FT.

Upon successful use of Fuse, the user is provided with an FT address.

This is the last step in the overall process where the user sets the index price for the token before the price determination starts. The user provides the following data as input to the process:

1.FT address (Fusible generates the token address from the previous step);

2.The number of tokens that will increase liquidity;

3.Initial collateral for pool seeding (in BNB).

A pool is created for the user on AMM (BNB/FT) where the FTs represent the deposited NFTs as shares upon successful completion.

For example: the user can generate 100 tokens in step 2. While in step 3, he can initialize the AMM pool with 10 FT (generated in step 2) and 0.1 BNB to get an index price of 0.01 BNB for each FT share . The rest of the generated FT shares that are not in the AMM pool can be sold on Fusible. So this will follow a different price discovery mechanism using a soft curve that can be set to a fixed or variable price.

This listing process on the two platforms, AMM and Fusible, will allow the user to maximize price discovery based on mutually exclusive price action on those platforms, causing arbitrageurs to take advantage of the price imbalance, resulting in an equilibrium price between the two platforms.

The price of the pooled NFTs will be discovered in parallel on two platforms, one on AMM and the other on Fusible, using the algorithm on Fusible.

We use AMM to help users get maximum exposure to their pooled tokens both in terms of reach and liquidity.

Pricing of seed seed tokens on AMM will follow the standard AMM protocol (link to AMM/PancakeSwap/Uniswap Whitepaper), while pricing on Fusible will follow Bancor's formula with parameter limits.

Return = _supply * ((1 + _depositAmount / _reserveBalance) ^ (_reserveRatio / 1000000) - 1) (Bancor whitepaper link)

_supply = total number of tokens

_reserveBalance = total reserve balance

_reserveRatio = reserve ratio, expressed in ppm, 1-1000000

_depositAmount = deposit amount, in reserve token

$FUSI is a native platform token and the main utilities of the $FUSI token are as follows:

-Control;

-Weekly platform token rewards for market traded buyers and sellers pool their NFTs based on their weekly activity

-Voting proposals for curation.

$FUSI utilities include, but are not limited to, liquidity mining, staking, incentivized platform participation, fund management reward distribution, and community management.

Distribution of tokens

Fusible's total supply is capped at 10,000,000 FUSI.

-1,600,000 FUSI is allocated to seed investors and a private sale at a price of $0.45.

-Tokens both at the initial stage of the seed round and tokens of strategic private investors are transferred for 12 months, with 15% of the token unlocked at listing, and the rest with daily distribution from 31 days over the next 11 months.

-100,000 FUSI is allocated for public sale (IDO) at a price of $0.72 and is 100% unlocked on listing day.

-3,500,000 FUSI is allocated to the community in the form of a reward pool and an ecosystem. A total pool of rewards of 566,112 FUSI distributed across incentive programs including crop growing, staking, liquidity pools, minting and participation in the platform for 12 months.

-300,000 FUSI has been allocated to provide listing liquidity, which will only be used for exchange market pools.

-The fund is allocated $2,000,000 FUSI with a 24-month rollover for future strategic funding needs and product development.

-2,000,000 FUSI is allocated to the founders and team and 0% will be unlocked before the 6th month. The tokens will not be mass unlocked even after 6 months and we will have a daily distribution for the next 12 months.

-500,000 FUSI is allocated to EAs with 0% unlocked token until the 6th month. The tokens will not be mass unlocked even after 6 months and we will have a daily distribution for the next 12 months.

-FUSI's initial turnover will be 678,889 or 6.789% of the total supply, which is 240,000 from early-stage investors and 100,000 from public sales. 300,000 tokens allocated to ensure the liquidity of the exchanges, these tokens will be available on the exchanges for the sole purpose of a liquidity pool, which means that they are also locked.

-Thus, the effective offer of the initial circulation is 378,889 FUSI dollars, i.e. 3.789%.