Fusotao Protocol is a verification protocol for order book based order matching system
General Introduction to the Fusotao Protocol
The Fusotao protocol is a verification protocol for an order book-based matching system that uses an in-chain, off-chain execution verification model. Fusotao as an on-chain verifier and implement their own off-chain matching server. The Fusotao Network is an application chain based on the Octopus Network for holding user assets and verifying matching transactions from off-chain exchange services. Founders can build their own DEX using the application chain Communities can earn rewards by trading on DEXs or directly staking tokens for DEXs supported by the Protocol Fusotao.
The Fusotao protocol consists of two core components: A blockchain that acts as a verifier and an off-chain matching system that acts as a maxim. Currently, we have built the blockchain on the platform as a standalone blockchain, by partnering with the Octopus Network we are able to connect to NEAR and other substrate-based application chains. By trading on the Fusotao integrated trading platform, users do not need to transfer funds to the platform, instead, they only need to authorize funds. Once the authorization is complete, only the status is changed from “free” to “reserved” and the funds remain in your wallet. The coin’s “reserve” status will not change until the off-chain language outputs proofs. The off-chain dialect is a standard matching engine like other CEX matching systems with an additional check engine.
Benefits of joining the Fusotao Protocol
The Fusotao protocol is a completely decentralized and permissionless community protocol. Therefore, most of the $TAO tokens will be generated by community mining and distributed to the community members who maintain the operation of the Fusotao Protocol and execute transactions.
63% of $TAO tokens will be allocated to community members participating in the Protocol, that is, community traders, blockchain validators, and participants staking for $TAO. Three participants will receive $TAO rewards through PoT, PoV and PoS.
Trading reward: Proof-of-Trading (PoT). The trading operation itself is the core of the entire system. The Fusotao Protocol introduces Proof-of-Trading to promote transactions that receive TAO rewards. When users trade on DEXs supported by the Fusotao Protocol, they will receive TAO tokens according to the trading volume.
Validator Bonus: Fusotao Protocol validator nodes powered by the Octopus Network use Proof of Stake (LPoS) to secure the permissionless network. Community users can get TAO rewards by becoming validators or placing OCT on verifying nodes in the Octopus Network.
TAO Token Reward: Proof-of-Staking (PoS). In addition to the above, To incentivize long-term holders of TAO tokens, the Fusotao Protocol will also support staking of TAO tokens once the mainnet is launched.
Transaction Fee Sharing: Community users can directly share transaction fees through staking TAO Tokens for DEXs supported by the Fusotao Protocol.
How does Fusotao ensure security?
Fusotao uses the “do off-chain, verify on-chain” model. We have a centralized off-chain service for order bookkeeping and order matching. After an off-chain match, the protocol verifies it on-chain. That means the content is always under the user’s control and always live on-chain. In addition, Fusotao will work with the Octopus Network to ensure the security of the blockchain and enable Fusotao’s interoperability with NEAR or any IBC-enabled blockchain.
Orders from users are sent directly to the off-chain dispatcher and are executed off-chain, so users do not need to pay gas fees. The on-chain verifier is responsible for verifying the correctness of the state modification. For a DEX or a match, they should pay gas because it’s the inviter, but if the proofs they submit are verified, that person will return the gas. In other words, only invalid proofs will be charged.
Fusotao Investors
Here are the amazing organizations that have invested in Fusotao projects that show the strength of the project at launch, a list of these organizations that have supported many blockchain based projects and achieved their goals, that is why Fusotao Protocol has been accepting their alliance since its inception, including but not limited to blockchain based organizations stacked below…
Summary
Our immediate mission is to assist some of the founders in building their own order book-based DEXs on our blockchain using our matching engine and verification protocol. In the near future, Fusotao aspires to be a core component in driving the growth of DeFi using high-performance and high-security features.
