Fusotao Protocol

About Fusotao Protocol

Every bit should be proved. Fusotao is a verification protocol for a sequential matching system that makes you trade neither relying on human trust nor bearing the high latency and cost. The foundation of a permissionless network is decentralization. It is hard to look forward to enough validator nodes to secure the network as a new permissionless blockchain. Since Fusotao is based on Substrate, we decided to join the Octopus Network, a multi-chain infrastructure for Substrate-based Web3.0 applications. In this scenario, we call Fusotao an app chain of the Octopus Network. Despite good intentions, the current method of verification is still expensive, time-consuming, and relies on people trust and lack of decentralization Before start introducing Fusotao Protocol, let’s take a look at the matching system and consider why a matcher’s outputs should be verified. A matching system is a trading platform that allows users to price orders. The core component of a matching system is a data structure named orderbook which stores all orders that are according to the price and time, and a placed order must follow the sequence to trade if the price meets, while the owner of an order would be ignored. Usually, in order to trade on a matching system, users may hand over their account ownership so that the matcher can mutate the account. In another word, trading on matches should rely on human trust. Blockchain is another typical serial system whose key rule is determining the order of all accepted incoming transactions. E.g. the Bitcoin network uses PoW algorithm and the Longest Chain Rule to ensure the global unique sequence of transactions. It seems natural to build a matching system on-chain just like a plain transfer function did. However, due to the limitation of block capacity and high latency, it is not straightforward to do it so. Imagine there are tens of thousands of orders in one order book, it is not acceptable to store all orders in the blockchain machine, but you can only save a few essential data to verify the matching results. In the next section, we will show how to verify the match results without holding the entire order book. Execute off-chain, verify on-chain Fusotao protocol is a set of matching and verification protocols. "execute off-chain, verify on-chain" paradigm is the core of the Fusotao Protocol. Through on-chain authorization and off-chain order-book matching, users can complete transactions and obtain transaction proof without assets custody. The whole process is based on automated trust rather than human trust. The user's assets will not be changed until the matched transaction is proved successful on-chain. The trading itself is the core of the whole system. Since Fusotao Protocol aims to be a trustless Defi infrastructure, security is our top priority. Octopus Network provides a light-client-based bridge connecting to NEAR Protocol for each app chain which makes token bridging independent from oracles. In another word, migrating tokens from NEAR to Fusotao or reverse does not rely on human trust because both NEAR and Fusotao will validate whether the bridging events happened or not by saving all the finalized blocks of each other. Community traders, block validators, and TAO staking participants are the main contributors to the Fusotao Protocol's stability. In this way, we ensure a zero-cost, high-speed, and safe transaction. The three participants will get TAO rewards through PoT, PoV and PoS. <b>Trading rewards: Proof-of-Trading (PoT): </b> Fusotao protocol is a set of matching and verification protocols. "execute off-chain, verify on-chain" paradigm is the core of the Fusotao Protocol. Through on-chain authorization and off-chain order-book matching, users can complete transactions and obtain transaction proof without assets custody. The whole process is based on automated trust rather than human trust. The user's assets will not be changed until the matched transaction is proved successful on-chain. The trading itself is the core of the whole system. Fusotao protocol introduces the Proofof-Trading to motivate transactions to obtain TAO rewards. When users trade on DEXs powered by the Fusotao Protocol, they will get TAO tokens according to the trading volume in one era(about 24hrs ). 48 million TAO tokens, accounting for 48% of total supply, are used for PoT rewards. After the launch of the Fusotao mainnet, it will be unlocked at an unlocking rate of 9.6% every year. 26,301 TAO tokens will be distributed to traders every era as PoT rewards. The detailed reward rules are as follows. Assuming that the total trading volume of all DEXs powered by the Fusotao Protocol is equivalent to $10000 in one particular era, and the trading volume of a user is $50 in that era. This user can get ($50 / $10000) * 26,301 TAO = 131.5 TAO as PoT reward in that era. <b>Validator Rewards: Proof-of-Validator (PoV):</b> It is a common practice for blockchain projects that network nodes with packaging rights receive token incentives, which ensures the correct operation of the network. Verification nodes of the Fusotao Protocol is provided by the Octopus Network (OCT). Community users can obtain TAO rewards by becoming the verification node or staking OCT to verification nodes in the octopus network. <b>TAO Staking Rewards: Proof-of-Staking (PoS):</b> In order to incentive the long-term holders of TAO tokens, the Fusotao Protocol will also support TAO token staking after the main net is launched. Stacking participants and reward distribution are completed automatically through the protocol to avoid centralization risk. Staking reward, accounting for 7.5% of the total token supply, will 7 be unlocked for 5 years, with an annual unlocking rate of 1.5%. Staking participants need to lock TAO to the staking protocol. The protocol will automatically calculate stacking rewards according to the locked proportion, and the user can claim staked tokens and rewards after the staking period. Users can not withdraw their staking token during each stack period. 1.5 million TAO tokens as PoS rewards are distributed to stacking users every year. Suppose during one event, the system sends N TAO to PoS participants daily. The amount of N is proportionate to the trading volume, number of users and liquidity of Fusotao. Detailed rules will be published later. For example, if a user’s effective lockup amount is 10,000 TAO on that day, and the total lock-up amount is 1,000,000 TAO, the user is expected to receive (10,000 TAO / 1,000,000 TAO) * N TAO = 0.01N TAO TAO Usage Scenarios As the native utility token of the Fusotao Protocol, TAO not only represents the rights of the holder but also has actual value. TAO can be used in the following scenarios. <b>Governance Token</b> - Fusotao is a decentralized infrastructure with deep participation and leadership of the community. TAO is the only certificate of community participation in governance. <b>Gas Fee</b> - TAO tokens can be used to pay gas fees on the Fusotao Protocol application Chain. <b>Staking for Transaction Fees</b> - The Fusotao protocol is a decentralized blockchain network. Community users can directly share transaction fees through staking TAO Tokens for the DEXs backed by Fusotao Protocol. <b>Trading Rewards</b> -Users who hold TAO tokens in the on-chain wallet and trade on the DEXs backed by the Fusotao Protocol can earn rewards through PoT. The Core team. <b> Author (Co-founder)-</b> Senior programmer, proficient in rust language programming. Senior expert in blockchain technology application and DeFi application. Author has rich experience in big data parallel computing and distributed algorithm optimization and has done in-depth research in blockchain and cryptography. GitHub: https://github.com/cyberaurora <b>Jason Ching (Co-founder, COO)-</b> Former operation director of L2 lab and ZKS LinkedIn: https://www.linkedin.com/in/jason-ching-803305150/ <b>DannieWong (Senior community manager)-</b> Four years of blockchain operation experience, with extensive market operation experience. Dannie has held leadership roles in operations in multiple projects and exchanges. Dannie is fascinated by blockchain & the crypto market. <b>Max (Adviser)-</b> Legal, financial and marketing adviser for the global sector. He has years of experience in blockchain market strategy and community building. Always has unique views on project development. IDO Sale Steps Step1. Create your NEAR wallet address: https://wallet.near.org/create Wallet must have a min 0.1 $NEAR ( $0.5 ) for gas - you can use CEXs including Binance, Bybit, Kucoin, Gate, and Huobi to send to your Near Wallet Step2. Buy your allocation with BNB: BSC network on Poolz web https://www.poolz.finance/project-details/about/106 Step3. After BNB transaction sale confirmation, copy-paste your NEAR wallet address into the 2 relevant boxes. Step4. Trade & Listing of $TAO on NEAR Blockchain: Token Distribution: Airdrop on your NEAR Wallet DEX: Listing on Near DEX: Ref, Fusotao DEX: FXDX CEX: Listing on Huobi & MXC