Fuse Network Q2 Dapp Ecosystem Report

Fuse Dapp Ecosystem

The Fuse dapp ecosystem has undergone impressive growth in Q2, 2022, as builders continue to choose Fuse Network as the most suitable smart contract platform on which to launch their projects. A combination of real-world implementation and forward-thinking token economy projects brings DeFi and blockchain closer to the mainstream.

The Fuse tech stack lies at the heart of the network’s value proposition. Growth in this area is paramount to cultivating a safe and easy-to-adopt home for Web3 apps. To that end, we are constantly working to improve the network status and tooling available to developers and businesses that choose to build on Fuse.

It’s safe to say that Q2, 2022, has been the usual wild ride expected in the crypto and blockchain industry. Stablecoins lost their pegs, and crypto collapsed, all while NFTs continued to be as relevant (and traded) as ever.

Fuse Network remained relatively unaffected by the recent doom and gloom surrounding stablecoins and the Terra debacle, instead focussing on improving its value proposition and attracting more real-world projects and users.

Key Takeaways

  • Fuse Network is a top 10 blockchain in terms of the number of Unique Active Wallets connecting to its dapps daily, surpassing Avalanche, Flow, Harmony, Optimism, and Fantom.
  • Despite the challenging macroeconomic outlook for global markets, the total number of wallet connections with Fuse dapps was more than 4 million in Q2, 2022.
  • Daily, more than 44,500 unique active wallets connect to Fuse dapps.
  • Wallets connected to Fuse dapps completed more than 4.7 million transactions on the Fuse blockchain.
  • By the end of Q2 2022, there were more than 1.2 million registered wallet addresses on Fuse Network.
  • The number of wallets interacting with FuseCash is up 414%, and transactions swelled by 192% when comparing Q2 2021 with Q2 2022.
  • Total Value Locked (TVL) across all Fuse Network DeFi dapps stands at around $10.2 million, down from its all-time high of $40 million, with Voltage Finance accounting for more than 72%.
  • Universal Basic Income generator GoodDollar has become the leading dapp on Fuse Network and a top 10 DeFi dapp globally, ranked by DappRadar.
  • The Artrific NFT Marketplace has captured around 33114 FUSE in NFT trading volume since launching in 2022.
  • Fuse has cemented partnerships with Arcana, LI.FI, Ramp Network, and more to facilitate easy user onboarding with social logins and fiat off and on-ramps to Fuse.
  • Fuse’s off-the-shelf development kit, Fuse Studio, will relaunch as Fuse Charge at the start of Q3 2022.

Contents

Setting the Scene

Several crypto-specific and macroeconomic factors dictate the climate we currently see in the crypto and dapp ecosystem. Cryptocurrencies have taken a sizeable dent since the fall of BTC, down to its crucial support of $20,000. Leading to the entire market feeling the squeeze and most tokens being down over 50% since November 2021 highs.

The collapse of the once second-largest DeFi ecosystem — Terra, and the crash of the associated LUNA token and the UST stablecoin, have only exacerbated the bear market. Then like dominoes, incidents involving various centralized and decentralized exchanges declaring insolvency, alongside more asset bridge hacks and NFT exploits, brought further doom and gloom to the industry.

Add to this a war in central Europe affecting millions of people, global supply chain failings, and interest rate hikes as inflation swell to levels not seen for 30 years. The effect on the blockchain industry can be seen more clearly through the lens of the Total Value Locked across all DeFi protocols.

Since January 1, 2022, TVL has fallen more than 70%, from around $302 billion to $86 billion. Still, at the end of June 2020, TVL in DeFi was only $2.2 billion, so the industry has certainly come a long way since the summer of DeFi.

Source: DeFi Lama

Builders market

However, it is certainly not all bad news. Bear markets bring newfound energy and vigor to those projects with a clear goal and runway to success. As stated, the number of active wallets and transactions on Fuse dapps is up significantly. Despite the scenario, the industry is now more mature than ever, with many dapps and services for token holders to engage with. It’s not like 2018 when just a handful of dapps existed on a few blockchains.

Arguably, the strength of a blockchain is based on the success of its dapps and how well they manage to attract, onboard, and retain users. While the entire media narrative focuses on doom, gloom, and token prices, Fuse sees something else. We see a vibrant ecosystem of dapp builders concentrating on rolling out the next wave of easy-to-use DeFi and real-world use cases.

Given the harsh economic climate and increasing cost of doing business using traditional payment rails, the tide is turning in favor of decentralized solutions. Moreover, Fuse represents a solid choice for companies and dapp developers looking to embrace and build easy-to-use DeFi, Play-2-Earn gaming, utility, social, and NFT dapps.

Forthcoming Fuse projects such as Peepl, Comunitaria, and Flambu flash a glimpse of the potential of Web3 payment rails and applications to change how we do business and look at payment systems.

Total Value Locked (TVL)

The Total Value locked in DeFi dapps across the network’s smart contracts stands at $10.8 million, down from its high of $48.6 million at the start of January 2022. Of course, TVL is measured in dollar value, so the falling price of the native FUSE token will organically affect TVL in dollars.

There are several earning opportunities for FUSE token holders, with rewards ranging between 17% and 24%. Generally, staking FUSE will reward a 17% APR, while becoming a validator will earn participants a 20% APR. In the middle, FUSE holders can lend FUSE for around 19% APR rewards.

Fuse Dapp Ecosystem
Source: DeFi Lama

Active Users of Fuse Dapps

A key indicator for growth in the blockchain space is an increase in the number of active wallets interacting with dapps on Fuse Network.

The average daily number of UAW interacting with Fuse dapps stands at approximately 44,500, with more than 4 million interactions across Q2, 2022.

Source: DappRadar

Importantly, alongside the upward shift in UAW, we see a significant increase in transactions being processed through Fuse dapps, indicating that users find something they like once they land on a dapp running on Fuse. The number of transactions completed through Fuse dapps surpassed 4.7 million in Q2.

Fuse Is a Top 10 Blockchain

Another critical factor is how Fuse stacks up against other networks regarding the number of UAW interacting with its dapps. While most of the blockchain industry focuses on essential TVL values, at Fuse, we believe it isn’t an accurate measure of user growth, as a handful of users can contribute most of the value.

The below snapshot glance shows the last seven days of user activity on Fuse. Of all the networks tracked by DappRadar, the Fuse network ranks 9th at writing for UAW, far surpassing competitor networks regarding daily unique active wallets interacting with its dapps. More importantly, many projects building on Fuse are still in the nascent stage and are expected to add significant value and users once fully launched.

Fuse Dapp Ecosystem
Source: DappRadar

One project, in particular, has become a star on the Fuse network and currently drives the lion’s share of activity. Moreover, it provides a perfect case study for projects looking to launch real-world solutions on Fuse Network.

GoodDollar a Top 10 DeFi protocol

One project launched over a year ago but finding lots of traction in 2022 is GoodDollar, a people-powered framework to generate, finance, and distribute global basic income via the GoodDollar G$ coin. GoodDollar has become a stalwart in the top ten DeFi dapps as ranked by DappRadar, giving it more visibility and potential to attract new users.

Fuse Dapp Ecosystem
Source: DappRadar | Data Captured: 30.06.22

Founded by Yoni Assia, the co-founder, and CEO of eToro, Europe’s most prominent social investment network, GoodDollar is based on Assia’s theory of social money, first presented in 2008. Its goal is to provide a baseline standard of living and reduce wealth inequality by creating a universal basic income (UBI).

Additionally, eToro has financed the GoodDollar project as part of its corporate social responsibility initiative. Supporting the nonprofit’s effort to bridge the global wealth gap using DeFi and innovative smart contract technology.

GoodDollar has become the darling of the Fuse network and is currently responsible for the lion’s share of UAW and transactions we see on Fuse in Q2, 2022, progression is steady, and GoodDollar successfully retains users once onboarded.

Source: DappRadar

TVL in GoodDollar stands at more than $914,000 at writing and represents around 10% of the total TVL locked in Fuse. More interesting is that the project is still in very early stages with a solid 2022 roadmap.

Source: DeFi Lama

In 2022, the GoodDollar platform released more than 1.2 billion G$ tokens to 447,570 UBI claimants worldwide, equivalent to almost a quarter of a million dollars.

The GoodDollar team outlined ambitious plans for the next 12 to 18 months. It will undertake a string of technological improvements and business measures designed to take the project to the next level. These improvements fall under three broad headings:

  1. The GoodDollar Economy: Measures designed to build out the GoodDollar impact economy and expand the utility of the G$ UBI token, which is engineered to strengthen the more it is used. The protocol will forge new connections within the DeFi ecosystem and work with the community to expand the number of places and ways G$ can be used.
  2. The GoodDollar Protocol: Improvements under this heading will ensure the protocol stays strong and healthy. Since the Company’s goal is to onboard the broadest possible spectrum of users, GoodDollar will also look to deploy on Layer 2 and side chains to keep transaction costs in check.
  3. GoodDollar Governance: Efforts in this area will focus on ensuring all members of the GoodDAO — a collective committed to the fight for wealth equality — have the tools, knowledge, and encouragement they need to contribute to the future of the GoodDollar.

Most importantly, the GoodDollar project proves that good projects looking to achieve scale can thrive on Fuse Network.

Fuse Cash Active Users Grow 414% Year over Year

The purpose of Fuse Cash is to quickly onboard users into crypto and the broader Fuse ecosystem and set them up with a blockchain wallet, all without overcomplicating things or requiring any private key or seed phrase responsibilities.

Fuse Cash is an essential component in the Fuse ecosystem. The blockchain-native wallet allows anyone to create an account using a phone number. Users can load money into their digital wallet via credit card or bank transfer.

Deposits are converted into FuseDollar (fUSD), a USD-pegged stablecoin fully backed by USD Coin (USDC). Additionally, users can trade FuseDollar for other digital assets thanks to the in-app token swap function. Assets available for swapping include Fuse (FUSE), Ethereum (ETH), and Bitcoin (BTC).

A new proposal introduces the idea of a new fUSD mechanism which implies pegging it to a basket of different stablecoins and not just USDC. The idea of a new fUSD model came to light after recent events in the stablecoin market, especially the fall of UST and algorithmic stablecoins losing popularity.

By diversifying the basket of assets fUSD is pegged to, Fuse can mitigate the exposure to fUSD de-pegging from the $1 price and add an extra layer of security to user funds.

Unique active wallets connecting to Fuse Cash have grown by an impressive 414% and transactions by more than 190% when comparing Q2 2021 with Q2 2022. Zooming in on 2022, we see a leap in transactions and UAW connected to Fuse Cash around mid-March when the project was engaged in marketing and an onboarding drive. This surge skews the Q2 versus Q1 data as we see inflated numbers for the end of Q1.

Source: DappRadar

In Q2 2022, Fuse Cash saw a decline in UAW connecting to the platform as the bear market settled in and global markets sank into depression. Fuse Cash attracted an average of 153 UAW a day during Q2 2022 compared to more than 600 a day in Q1 2022. However, while the performance of Fuse Cash is essential, more important is that dapp builders and businesses can easily integrate the white label wallet solution into their projects.

It is expected to pick up once some confidence returns to the market, especially with a raft of enhancements, staking reward offers, and extra features planned for Fuse Cash in 2022.

Voltage Finance

Voltage Finance is the leading DEX on Fuse Network, it facilitates token swaps, asset bridging, yield farming, and more decentralized finance services. TVL in Voltage currently stands at around $7.4 million, accounting for more than 72% of TVL on Fuse Network.

As widely reported, on 1st April 2022, the lending element of Voltage Finance, powered by Ola Finance, suffered a reentrancy attack leading to the theft of more than $4 million in stablecoins and cryptocurrencies.

Peckshield stated that the hack was due to a reentrancy bug that allowed hackers to drain the lending pool. This vulnerability arose from an issue between ERC-677/777 tokens (the basis of most of the affected stablecoins) and forks of the Compound Network (something that Ola Network allows developers to create).

A compensation plan was put in place, still playing out today, alongside an open proposal to the community to reignite the relationship between Ola Finance, Voltage, and Fuse.

Following vulnerability fixes, the team at Ola has recently made a proposal in the Voltage Forum for the reinstatement of an Ola lending instance on the platform.

Source: DappRadar

As a result, the number of UAW connected to Voltage Finance decreased significantly when comparing Q1 to Q2 2022. However, as we see below, in the last 30 days, confidence is returning along with users and a host of new offers and products on the Voltage Platform. The number of UAW connecting to Voltage is up over 20% month over month, while transactions swelled around 19%.

Fuse Dapp Ecosystem

Voltage’s top three trading pairs are WFUSE-fUSD, fUSD-BNB, and fUSD-VOLT. The top pair is WFUSE-fUSD which shows that users accruing rewards favor cashing out to wrapped Fuse on Ethereum. BNB being the second most traded pair by volume indicates a strong link between BNB Chain ecosystem users and Fuse, as both are EVM-compatible chains and offer low transaction fees.

We also see by diving deeper that the bulk of transactions is users swapping fUSD for BNB in relatively small amounts, indicating these cashouts to be rewards accrued through staking fUSD. The same is true for the WFUSE-fUSD pair, which arguably shows that users see both FUSE and BNB as appreciating assets worth investing in at this time in the market cycle.

NFTs on Fuse Network

NFT collections are just starting on Fuse, but the Artrific NFT Marketplace has already captured around 33114 FUSE or approximately $2,650 in NFT trading volume. The floor price of the most popular NFT collection, Cozy Cosmonauts, is around 333 FUSE or about $25.

The performance is impressive, given that the marketplace only launched at the end of December 2021. Moreover, it launched at the start of a bear market and, as an overextended NFT hype phase that began at the end of 2020, started to cool down.

As mentioned, Cosy Cosmonauts are the leading NFT collection on Fuse and consist of 999 PFP avatar images with various traits and rarities. Cozy Cosmonauts has generated 19932.99 FUSE in trading volume, or around $1600, and they make up the lion’s share of the trading volume generated through Artrific at writing.

Other top-performing collections include the veNFT Series, Brains, and FuseFace. However, none are truly competing with the Cosmonauts when it comes to trading volume. Arguably Cosy Cosmonauts were the first PFP collection on Fuse and so will carry OG-like status, similarly to CryptoPunks or CryptoKitties.

Cozy Verse NFT Incubator

Fuse Blockchain is ideal for NFT and gaming due to its low cost and high speed, but it needs a kickstart. The Cozy Cosmonughts NFT collection team sets up the Cozy Verse NFT incubator program. It aims to nurture talent and pass on valuable knowledge, so new projects on Fuse don’t have to make the same mistakes. In the process, bringing new exciting NFT projects to the FUSE ecosystem.

Interestingly, CozyCosmonauts NFT holders are automatically whitelisted for every NFT project in the incubator. Additionally, they always receive at least 50% off the mint price to thank them for their loyalty to the project.

The first incubated projects are baking now and almost ready for launch. Amazing Horses is a casual Play 2 Earn game on the FUSE Blockchain with fun illustrations and memes. The collection consists of 999 horses that differ in artwork and features.

The Amazing Horse NFT can be staked to earn carrot tokens which can be used to strengthen a horse for the next race and compete against other horses. The 100 best jockeys will participate in the FUSE Amazing Horses Cup 2022. The other collection about to launch is called Rusty Robots, and very little has been revealed about this collection at writing. All we know so far is that they are robots and they are rusty.

Fuse Dapp Ecosystem

Moreover, NFTs on Fuse are still in their nascent stage. It will be interesting to see if more PFP collections launch on Fuse or whether projects that utilize NFTs as real-world marketing and customer interaction vessels such as ticketing choose Fuse.

Artrific has not pigeonholed itself at launch and is wide open to rank and list NFT projects in several areas, including art, collectibles, domain names, music, and more.

Significant Q2 Announcements Recap

With so much happening weekly, it can be hard to stay current on everything happening at Fuse Network. Below you can find the most significant developments, integrations, and announcements in Q2, 2022.

April 2022

Fuse’s Native FUSE Token Now Listed on Huobi Global
Huobi Global has now listed Fuse’s native FUSE token, Deposits and withdrawals have been opened on the Ethereum mainnet, and trading has been activated on the FUSE/USDT pair.

DeFi Monitoring Platform DEXTools Adds More Fuse Network Support

Leading DeFi monitoring platform DEXTools now fully supports Fuse Network. The complete integration between DEXTools and Fuse makes it more convenient to trade using DEXs on Fuse Network.

May 2022

Fuse’s Road to Scaling Payment Throughput. Part 1

The first installment in the series summarizes the Fuse scaling research conducted by computer science researcher Dr. Israel Gottlieb. It lays out the scaling outlook for Fuse, explains the choice of optimistic rollups as the preferred approach to scaling in the short-to-medium run, and discusses Arbitrum as the first option for implementing the actual scaling solution.

Fuse Partners with Angle to Bring the agEUR Stablecoin to the Ecosystem
Angle’s agEUR stablecoin has been bridged from Ethereum to Fuse Network via the Multichain interoperability protocol. It has also been listed on the Voltage DEX, and trading has been activated on the FUSE / agEUR pool.

Leading DEX and Bridge Aggregator Rango Exchange Now Supports Fuse Network
Rango Exchange has extended support to the Fuse Network blockchain. Its DEX and bridge aggregators now cover the Voltage Finance DEX and the transfers to and from Fuse Network via Multichain.

June 2022

Social Account dapp Logins and Convenient Decentralized Storage Arrive to Fuse with Arcana Integration

Arcana’s tech stack is now available for projects in the Fuse ecosystem wishing to onboard users with social logins, create wallets, and incorporate decentralized data storage and access management into their applications.

Fuse Charge Beta Launch — Making Blockchain Payments Easier Than Ever With Simple APIs
Business adoption will be the most significant mainstream driver of blockchain technology. Today, we take a giant leap forward in making business adoption more accessible than ever!

Upcoming partnerships and integrations

The Fuse tech stack lies at the heart of the network’s value proposition. Growth in this area is paramount to cultivating a safe and easy-to-adopt home for Web3 apps. To that end, we are constantly working to improve the network status and tooling available to developers and businesses that choose to build on Fuse.

If you’re not already familiar with our current tech stack, you can a look at the breadth of the offer on the website. Below you can find forthcoming integrations and partnerships we hope will develop the Fuse value proposition further:

Chainstack

Chainstack will bring its robust distributed full-node infrastructure to Fuse Network. Including free shared RPC nodes, public RPC endpoints, and enterprise-grade subscription-based nodes.

Building with Chainstack means you don’t have to think about your node and its connection to the network.

Li.Fi

Li.Fi is a major DEX and bridge aggregator that will officially integrate Fuse assets. Cross-chain bridging, swapping, and messaging will help drive Fuse builder’s multi-chain strategy and attract new users from everywhere.

Nethermind

Fuse Network’s full nodes currently run on the OpenEthereum client, but a switch to Nethermind’s client is in progress. Their flagship Ethereum client is all about performance and flexibility. Nethermind simplifies integration with existing infrastructures without losing sight of stability, reliability, data integrity, and security.

Superfluid

Superfluid is a smart contract framework on EVM networks, enabling you to move assets on-chain following predefined rules called agreements. With a single on-chain transaction, the money will flow from your wallet to the receiver in real time. No further transactions are required- it works like magic. The Superfluid protocol will be deployed on Fuse Network, enabling token streaming-based use cases.

Open Leverage
Open Leverage will deploy its leveraged trading protocol to Fuse Network, enabling leveraged trading on Fuse DEXs. With permissionless lending and margin trading, OpenLeverage enables long or short positions on any pairs on decentralized exchanges and will bring more breadth to the DeFi offer on Fuse Network.

Bitazza

Bitazza is building products on top of the Fuse B2B infrastructure and onboarding business clients in Thailand. More details will be revealed shortly.

Fuse Ecosystem Growth

Our ultimate vision over the next few years is to have more than 1 billion active users on Fuse Network, taking advantage of a diverse range of applications, including personal finance, sharing economy, events, hospitality, eCommerce, DeFi, and NFTs. The main areas of focus in our 2022 roadmap are:

  • Bridging and On-Ramping: Our goal is to add interoperability with all L1s and L2s and provide the best bridging experience, especially on mobile; Fuse dollar is available in 180+ countries, including bank deposits in the US, Europe, and 11 Asian countries; Focus on adding South American, African fiat ramps in 2022.
  • FuseX stablecoins: We have seen a recent surge in demand for our network stablecoin, Fuse Dollar (fUSD). We are working hard on releasing V2, which will introduce new mechanics that will make it even more helpful and allow the community to access it more efficiently.
  • Fuse Charge: A complete Fuse Studio revamp is planned in 2022 to become Fuse Charge, focusing on making it easier to use with an app store of tools and services. We will also add more developer tools and support and decentralized tools like DAO and treasury management.
  • Ecommerce and NFT: We saw several NFT marketplaces launch in 2021 with games, wallets, and tools deployed on Fuse and showing great demand. As part of the studio revamp, eCommerce support will be a big focus for 2022, allowing access to online tools for merchants and strong NFT support, enabling users to mint and sell online without friction and high fees.
  • DeFi meets mobile: Voltage Finance is almost ready to launch and enable a vibrant ecosystem for all things DeFi. 2022 has already started phenomenally for Voltage, and we can’t wait to allow more capabilities and ways to earn for Fuse Defiers.
  • Scalability: On top of increasing chain capacity, which will grow by 100% in 2022, Fuse is also working on an L2 roll-up that will be integrated into mobile and deployed during 2022 to scale consumer payments.
  • Mobile upgrades: Our wallet stack will add extensive features like social recovery, NFT support, L2, and Scaling. Our objective is to build the best wallet stack for any business that looks to build on a blockchain and reach customers without the friction of existing non-custodial wallets.

Final thoughts

Despite complex and ongoing macroeconomic pressures, the Fuse dapp ecosystem has displayed strong signals of robustness and an ability to ride the storm. Moreover, Fuse Network appeals to dapp projects and businesses building real-world solutions whose success lies in attracting a mainstream crowd instead of a crypto-native one.

Arguably, as we enter a bear market, real-world projects offering significant end-user benefits and cost-saving opportunities will have an opportunity to shine as the hype around DeFi yield farming and PFP NFT collections calms. The rise of genuinely utility-driven, customer-facing Web3 applications is getting closer, and Fuse Network is well-positioned to be a significant contributor.

More notably, the launch of the Fuse Charge, a one-stop developer portal in Q3 2022, shows the intentions of Fuse more clearly as an Ethereum-compatible, smart contract blockchain with tools and infrastructure available directly out of the box to take Web3 applications to the next level.

Data Sources:

https://dappradar.com
https://explorer.fuse.io
https://defillama.com/chain/Fuse
https://info.voltage.finance
https://artrific.io/rankings
​​https://datastudio.google.com/reporting

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