cLA.Labs x Fusotao
We are pleased to announce that CeloLaunch Labs has completed the project appraisal rounds and invested in Fusotao.
About Fusotao Protocol
1. Project Overview
The Fusotao Protocol is a verification protocol for an orderbook-based matching system, using paradigm of “execute off-chain, verify on-chain”.
Powered by the decentralized infrastructure of Fuotao, trust-free orderbook-based matching systems with zero-cost gas and low latency can be built. Through the method of off-chain matching, the process of order submission, order matching, certification generation and other processes runs on a centralized off-chain server, which enables traders to obtain the same fast and userfriendly trading experience as CEXs. Through the method of on-chain verification, only when the transactions under the chain pass the verification on the chain, will the user’s assets on the chain be changed, thereby ensuring the security of the user’s assets.
2. GTM Strategy & Product Viability
To achieve the above-mentioned secure, fast, decentralized, and scalable Fusotao protocol, a complete set of Token economic incentive mechanism is needed to enable all participants in the ecosystem to jointly maintain the operation of the Fusotao system. For one thing, the proportion of tokens and unlocking cycle need to be appropriately allocated to give full play to the initiative of developers, investors, and community participants, enable the Fusotao Protocol to achieve long-term prosperity; For another, incentives need to be given to block packers, transaction certification service providers, transaction participants and community governance to achieve sufficient liquidity, security, and stability of on-chain financial products.
Advantages of DEXs backed by the Fusotao Protocol:
- GAS Fees for transactionsin the DeFi World!
- Faster than Swap (off-chain matching)
- The Same Trading Experience as CEXs
- Assets are always at the user’s control
- Community can share transaction fees by staking TAO for the DEXs backed by Fusotao.
Fusotao vs AMM DEX and ZK-Proof DEX:
Compared to AMM and ZK-Proof DEX, Fusotao has great advantages in user experience and performance:
Most of the protocol tokens (TAO) will be distributed through community rewards and allocated to members who participate in the protocol:
- Trade to Earn Rewards
Some tokens supply will be distributed to community users who trade on the decentralized finance built on Fusotao according to the combination of transaction volume and TAO holdings.
Community users can directly share transaction fees through staking TAO Tokens for the DEXs backed by Fusotao Protocol.
- Claim as a Matcher
Fusotao is a completely permissionless network, any TAO holder can claim as an exchange and start matching & proving, earn rewards according to the proved transaction volume.
- Becoming a Validator
Fusotao cooperates with Octopus Network to ensure the security of Fusotao Protocol. Validators earn rewards by staking OCT tokens which represent a collateral against their malicious behavior.
Fusotao is fully open source, anyone can build trustless orderbook-based DEX easily:
FXDX is the first trust-free orderbook-based dex on Fusotao. Here is a short demonstration of the trading experience on FXDX from Fusotao:
3. Product Roadmap
- NEAR Network
You can read Fusotao Technical Greenbook: Here
5. Token Economy
TAO can be used in the following scenarios:
- Governance Token
Fusotao is a decentralized infrastructure with deep participation and leadership of community.
TAO is the only certificate of community participation in governance.
· TAO holders with a certain number of TAO can initiate upgrade proposals, such as adjusting gas, changing the reward distribution of liquidity provision pool, and putting forward TAO long-term incentives.
· All Tao holders can vote on proposals, and the proposal with a majority of votes will be adopted and implemented by the development team.
· If the project team plans to build a new DEX on the Fusotao Protocol, it needs to meet the minimum number of votes before it goes online.
- Gas Fee
TAO tokens can be used to pay gas fees on the Fusotao Protocol application Chain.
- Staking for Transaction Fees
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.
- Trading Rewards
Users who hold TAO token in the on-chain wallet and trade on the DEXs backed by the 9 Fusotao Protocol can earn rewards through PoT.
6. Token Distribution
TAO is the protocol token of Fusotao Protocol, with a total of 100 million TAO.
- Token Allocation
· 63% to Community Rewards
63 million TAO is allocated for community rewards. Within the 5 years after the mainnet launched, 12.6% of the total token supply will be distributed every year.
1. Trading Rewards, accounting for 48%. After the launch of the Fusotao mainnet, It will be unlocked for 5 years, with an annual unlocking rate of 9.6%.
2. Verification Rewards, accounting for 7.5%. Octopus network provides verification nodes and ensures the Cross-Chain security of the Fusotao protocol. Community users stake OCT token in Octopus network for the Fusotao node to obtain validator rewards. After the launch of the Fusotao mainnet, verification reward will be unlocked for 5 years, with an annual unlocking rate of 1.5%.
3. Staking rewards, accounting for 7.5%. After the launch of the Fusotao mainnet, staking reward will be unlocked for 5 years, with an annual unlocking rate of 1.5%.
· 8% to the Fusotao Team
8 million TAO will be allocated to the Fusotao team, with one-year lockup from the mainnet lunch. Starting the second year, 2% for the total token supply will be distributed to the Fusotao team every year till the end of the fifth year.
· 10% to Investors
10% of the total token supply, totaling 10 million TAO, will be allocated to the investors. Within the third month after the mainnet launched, 3% of TAO tokens will be unlocked, and the remaining 7% of TAO tokens will be unlocked linearly in the following 12 months.
· 5% to IDO on Skyward Finance
5% of the total token supply are used for IDO on Skyward Finance. It will be unlocked immediately when the mainnet is launched.
· 4% to the Initial Liquidity
4 million TAO tokens, accounting for 4% of the total token supply, used for Initial Liquidity. It will all be used to provide initial liquidity (TAO-USDT) on CEXs and DEXs after the mainnet launched.
· 1% to the Testnet Rewards
1 million TAO tokens, accounting for 1% of the total token supply, used for testnet incentives. Early community users participating in the testnet will be rewarded, and the reward will be unlocked three months after the mainnet launched.
· 3% to Ecosystem Developers and Marketing
3 million TAO tokens, accounting for 3% of the total token supply, used for market 3 & developer incentives. After the launch of the Fusotao mainnet, it will be unlocked for 5 years, with an annual unlocking rate of 0.6%.
· 6% to Fusotao Foundation
6 million TAO tokens, accounting for 6% of the total token supply, used for Fusotao Foundation, including long-term project management, partner support, academic funding, public work, community development, etc. After the mainnet goes live, it will be unlocked linearly in the 5 years.
The Fusotao Protocol is a completely decentralized and non-licensed community protocol. Therefore, most of TAO tokens will be generated by community mining and distributed to community members who maintain the operation of the Fusotao protocol and carry out transactions. Community rewards accounted for 63% of the total supply, of which transaction rewards account for 48%, verification rewards account for 7.5%, and staking rewards account for 7.5%.
63% of TAO tokens will be allocated to community members participating in the Protocol, that is, community traders, block validator and TAO staking participants. They are the main contributors to ensure the stable operation of the Fusotao Protocol and realize the zero-cost, high-speed 6 and safe transaction. The three participants will obtain TAO rewards through PoT, PoV and PoS. It is worth mentioning that individuals and official global ambassadors who contribute to the Fusotao Protocol will receive market & developer rewards.
You can read more about PoT, PoV and PoS: Here
- TAO Token Unlock and Vesting
67% of TAO tokens will be unlocked within 3 years after the mainnet launched, and long-term incentives will be given to the community in the next 2 years. The cumulative release curve of TAO tokens is as follows:
7. Partners & Backers
8. Official Links
About CeloLaunch Labs
CeloLaunch Labs — Venture Capital of CeloLaunch, identifies, aims, and empowers viably potential decentralized entrepreneurs, startups, and communities, providing financing to industry projects that help grow the project larger in Celo and other ecosystem.
CeloLaunch provides a constantly expanding set of decentralized services by offering revolutionary, flexible technology to add value to the DeFi industry as a whole, in CELO Network specifically. Startups may boost their initiative and reward communities by utilizing our services. Our vision is to construct an autonomous launchpad on CELO after recognizing the CELO Network’s future potential.
Pitch Deck: https://celolaunch.io/docs/CeloLaunch-Pitch-Deck.pdf
CertiK Audit: https://www.certik.org/projects/celolaunch