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FuseDollar (fUSD) is a 1–1, USDC-backed stable coin set to bolster the Fuse ecosystem by providing a highly-requested, ultra-easy-to-use medium of exchange for the payment communities built on the network. Plans to launch a direct fiat to FuseDollar on-ramp will also increase general Fuse Network liquidity and improve transactional flow on FuseSwap and other future Defi protocols.
Stable coins have been game-changing for the crypto sector since their inception in 2014; helping bridge the gap within the early trading community by providing a stable hedge against notoriously volatile market conditions. In recent years, they have become an attractive medium of real-world exchange; solving many basic problems that exist within legacy systems. Stable coins, and the open-source, 24/7/365 technology they run on, make sense as a form of real digital money for a digital age. They are truly global and, given the current state of Ethereum with its exorbitantly high fees that have priced many participants off the platform, we believe that Fuse Network is well-positioned to power stable coins as part of our mission to bridge the gap between DeFi and the real world.
Improved Usability for Mainstream Onboarding
A top priority for the product team at Fuse is to improve usability and onboard mainstream audiences to the Fuse Network. FuseDollar is designed to be an everyday person’s crypto. Over the coming weeks, we will announce a new on-ramp partnership that allows users to purchase FuseDollar and Fuse tokens using the Fuse mobile app via bank deposits, debit cards, credit cards, or Apple Pay.
Facilitating Community Building
FuseDollar helps to plug the gap in the community building experience by providing a widely accepted medium of exchange, pegged to the most used currency in the world. A quick, easy and practical major-currency-pegged asset has been a long-requested product by the entrepreneurs and impact leaders building on Fuse.
Easy Trading and Attractive Yield-Earning Products
Having a strong, Fuse-native stable asset on the platform will also improve the user experience on FuseSwap and other liquidity protocols that are built on top of the network in the future, including lending. As we continue to grow, ecosystem participants, who support these protocols by obtaining FuseDollar and putting it to work, can also look forward to regular incentivization programs initiated by Fuse Foundation.
How does FuseDollar work?
FuseDollar is created as part of our new FuseX product suite which is a collection of 1–1, asset-backed stable coins including but not limited to FusePound (fGBP) and FuseEuro (fEUR).
In order to mint fUSD, a user sends 1 USD Coin (USDC) and receives 1 fUSD in return. This whole process is completed autonomously by FuseX smart contracts on Ethereum and Fuse, and the user interacting with those smart contracts. To reverse the process and redeem the USDC, the user simply sends fUSD to the dedicated contract. Once the user receives the USDC, the FuseDollar is then burned. This process is completed autonomously on Ethereum main net by FuseX’s smart contracts. FuseDollar can be moved freely between Fuse Network and Ethereum using a bridge. Proof of reserve will be made available to those who wish to audit the backing thanks to an integration with a soon-to-be-announced, leading oracle service provider.
Circle’s USD Coin (USDC) has experienced solid growth in recent months capturing notable stable coin market share from Tether’s USDT. At the time of writing, there is over $7 billion worth of USDC in circulation, up from around $1 billion in DeFi summer 2020.
In the medium-term, we will be adding more stable coins, including DAI, as backing. This allows us to distribute the risk of holding a single asset and to aggregate yield, providing users with a much more user-friendly experience by eliminating the need to interact with DeFi protocols directly.
When can I obtain FuseDollar?
FuseDollar is currently being tested in production in the core mobile app available on iOS and Android. However, users are currently exposed to high gas fees due to the bridging costs from Ethereum. An official announcement will be made in early March about the launch.
FuseX: a Powerful Stable Coin Brand.
Fuse is considered to be one of the leading projects in DeFi when it comes to real-world implementations. The Mystic Valley Festival in Thailand, which processed over $1 million during a 3-day event in November is a testament to this. As more and more merchants are willing to hold and accept FuseDollar and other FuseX stable coins, and they, in turn, pay their suppliers with the same asset, it becomes widely used as a medium of exchange, taking on a life of its own and becoming a strong brand within DeFI and payments space. This, in turn, further strengthens Fuse’s ecosystem, community, and network.
Stay tuned over the coming weeks for more information on the release!
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