This article is updated regularly to ensure all the most relevant DeFi opportunities for Fuse token holders are covered. [LAST UPDATED: 28.02.24]
Finding the top DeFi opportunities for Fuse token holders can be a challenge. Navigating and hunting through multiple blockchain networks, wallet connections, and DeFi platforms is arduous. However, the potential rewards unearthed can outweigh the time spent researching.
This article will take you through all the current and potential opportunities to utilize your FUSE to gain rewards or increase your FUSE position over time. Please note that reward percentages can change daily, and it’s advised to use the links provided to check the most up-to-date figures.
We will dive into staking, yield farms, and pool opportunities across all the networks supporting Fuse tokens, starting with the most straightforward prospects and those available on Fuse Network.
First, if you are not holding any FUSE, the most straightforward route to getting it in your MetaMask or other blockchain wallet is to get it on Ethereum, Polygon, or BNB Chain. Then, to make the most of opportunities on Fuse, bridge FUSE to Fuse Network using the Fuse Token Bridge. Or bridge Fuse to another chain to find opportunities.
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N.B. We suggest getting FUSE on these chains because, as a crypto-savvy trader, you probably already hold other tokens on one of those three chains, making swapping them to FUSE and taking advantage of these opportunities simple and fast.
Utilizing FUSE on Fuse Network
Staking your Fuse tokens using the Fuse Console staking dashboard is the most straightforward way to get your Fuse tokens working. By locking up an amount of Fuse tokens with one of the many validators, you can earn around 14% APY on your Fuse tokens.
Most importantly, there is no minimum lockup period, and fees for staking and unstaking are minimal. Please note, however, that to stake Fuse tokens using Console, you must first hold your tokens on Fuse Network. If you have the Fuse elsewhere, you can use the Fuse Bridge to move it.
Stake FUSE for sFUSE on Voltage Finance
The sFuse token is the liquid staked token of the Fuse network, which allows you to be part of the consensus mechanism of the blockchain and earn a yield of around 16% while adding a layer of utility on top.
By staking Fuse on Voltage in Liquid staking, token holders can earn a yield on their Fuse tokens while using the allocated sFUSE to continue other DeFi activities, such as staking sFUSE for 1% rewards.
Liquidity Pools on Voltage
As Fuse Networks leading DEX, there are several liquidity pools on Voltage Finance for Fuse token holders to earn rewards. When utilizing Voltage liquidity pools, you must first swap your FUSE to WFUSE, wrapped Fuse, which can be quickly done inside the Voltage DEX.
A liquidity pool (LP) is a collection of two tokens, such as VOLT and FUSE, facilitating automatic exchanges. By contributing tokens to the LP, users earn a 0.3% fee from trades between those tokens proportional to their pool share.
You can see all the earning opportunities by navigating to the Pools page on Voltage. At writing, the most lucrative is to provide liquidity to the WFUSE/WETH pair, with the second most popular being the WFUSE/VOLT pair.
Yield Farming on Voltage
Farms on Voltage allows users to stake two tokens to provide liquidity while earning rewards in both tokens—a system known in DeFi as dual rewards. Providing liquidity for the WFUSE/VOLT pair yields the highest APR at writing, while WFUSE/WETH is also popular.
The dual reward system means liquidity providers receive a percentage reward for each token they lock up. For example, in the WFUSE/VOLT farm, users can earn 8% VOLT and 7% WFUSE rewards.
FUSE Vault on Beefy Finance
Beefy is running a validator node for Fuse, has integrated the Fuse blockchain, and offers the same reward structure through their DEX as the Fuse Console. I.e., lock up FUSE for around 15% of rewards paid in FUSE. It’s also possible to add liquidity to Voltage pools through Beefy Finance.
Yield Farming on Elk Finance
Elk Finance is a multichain DEX that integrated the Fuse blockchain and offers yield farming opportunities on the ELK/FUSE pair. The APR at writing is 12%, and rewards are paid in ELK, with a pool rate of 15 ELK daily.
Liquidity Pools on SushiSwap
SushiSwap is a leading multichain DEX that integrated the Fuse blockchain and offers several liquidity pools for Fuse token holders. On SushiSwap, the FUSE/WETH and FUSE/USDC are the most popular trading pairs, providing the best chance of return.
Trade Perpetuals on Lynx Finance
Lynx integrated $FUSE and $sFUSE tokens as collateral assets, allowing holders to trade perpetuals without liquidating their holdings. Additionally, token holders can provide liquidity to earn a share of trading fees. Start trading with up to 100x leverage on ETH/USD and BTC/USD pairs.
FUSE and sFUSE token holders can use their tokens as collateral to trade different instruments or earn trading fees by supplying liquidity.
Stability Pool Deposits on Merdian Finance
By locking up FUSE and minting and depositing USDM into the stability pool on Meridian Finance, users earn attractive yields on a stablecoin and play a crucial role in maintaining the pegging mechanism of USDM.
Provide Liquidity on LogX
Users that provide liquidity to the pool with USDT will get LLP in return and share Pool Trading Profits on LogX.
Utilizing FUSE on Polygon
Liquidity Pools on QuickSwap
A liquidity pool is a smart contract-based pool of funds locked into a protocol to enable trading, lending, or other financial activities without the need for traditional intermediaries like banks or centralized exchanges. Users can conveniently provide liquidity for the ETH/FUSE pair in several places from the QuickSwap DEX.
At writing, the pool with the highest TVL (More than $100k) resides on QuickSwap with an APR of around 35%, meaning QuickSwap has the deepest liquidity for trading FUSE to ETH. While it offers the lowest reward, its TVL means many Fuse token holders trust it and have their tokens locked.
To make the most of this opportunity, you must have equal amounts of FUSE and ETH on Polygon that you can lock up for liquidity provider (LP) tokens. Then, you lock your LP tokens into the pool and watch the rewards mount.
This Top DeFi Opportunities for Fuse token holders article will be regularly updated to ensure all the latest DeFi opportunities for Fuse token holders on the Fuse network and other chains are easy to find and take action.
A big focus for the network in 2024 is to expand the number and variety of DeFi earning opportunities for Fuse token holders and bring lending back to the network in collaboration with a trusted DeFi protocol.