Uses of FSN
In Concepts, we explore many unique features of the Fusion Network. But what is the use case of FSN?
Many cryptocurrencies can only be bought, sold, or sent to another address. Others can also be staked, used to provide liquidity, voted with, used as collateral for lending, and used in various smart contracts. Mainnet coins are also often used as gas.
FSN can do most of these things and can also do something that's completely unique. It can be time-sliced. Though other assets can be time-framed on Fusion as well, the fact that FSN can be time-sliced while being natively owned will always make it unique.
Currently, ten main uses of FSN have been identified:
Staking your FSN is a way to extract interest from it while helping to secure the network. Time-sliced FSN is used to buy tickets for a node, which will have a chance to win a lottery to sign the next block. The more tickets you have, the higher the chance of winning. Each block reward consists of a set amount + a gas amount. Although this staking game may sound quite advanced, it's quite predictable and can be converted into a more or less set interest rate, which can be viewed here. Thus, staking is a safe and easy way to earn interest from your FSN, and you have the option of doing it yourself or sharing time-sliced FSN with a pool, which is even easier.
2. Providing liquidity
Providing liquidity for FSN is mainly done in the Chainge DEX or freemoon.exchange but can also be done on pretty much any DEX on any network if you use the Chainge app or Multichain bridges to bring FSN to other networks. Currently, you will find certain liquidity on, for example, Mdex and PancakeSwap. The benefit of providing liquidity is that every time someone swaps, the liquidity pool will collect a small fee that gets added to the pool. In addition to this you can harvest LP specific rewards for certain pairings. Providing liquidity carries with it some risk, especially if the value between the provided assets changes greatly in value. But if the price ratio is relatively stable, the fees and rewards will make up for the losses from value disparity.
3. Time-framing and Futures liquidity
In addition to Fusion time-slices, there is a second way in which you can divide Fusion in time known as time-framing. It is nearly the same thing, but one difference is that time-framing can be used in AMM, and thus it is possible to have a DEX for FSN/TF-FSN. This exists in the Chainge Finance application, and it has quite generous rewards. First, there is a reward for time framing FSN, and then there are additional and quite high rewards for providing liquidity between FSN and TF-FSN. Since this type of exchange can't have impairment loss (being an exchange consisting of essentially the same asset FSN and future FSN), it becomes an alternative to staking, except the primary reward is in the form of CHNG instead of FSN.
4. Sharing interest
One interesting aspect of time-slicing FSN is that it allows you to donate or make a payment without actually losing any FSN. You can use a stack of FSN as payment eternally without ever decreasing the stack. This can be a great way to share your interests and gain a little FSN with time. This story expands on that idea, imagining a world where time slices could be used for shoping in shops that have a way to handle the interest extraction.
5. Write call options and options liquidity
If you time-frame FSN, it consists of two slices: the primary slice that lasts from the set time until infinity is a future, and the other slice that lasts from current time until the set time is in some sense utilized by Chainge to allow its users the possibility to write a call option for FSN. Initially, this piece is not used and is kept by Chainge or burnt. To unlock the option, you must lock in your future piece under certain conditions. In exchange for this lock-in, you unlock the other piece of the FSN but as a FRC758 token called FSN CO, which is the call option. You can provide liquidity with it, give it to someone, or sell it. Writing options and selling them can be a way to extract value from your FSN without selling the full FSN. However, there is a risk that your full FSN may get sold at the strike price, even if you didn't desire this.
6. Trade options
If you are more interested in trading, you might find it more interesting to trade options than FSN itself. The logical scenario for options is that FSN call options will rise even higher if FSN price increases, and drop even more if FSN price decreases. For put options, the reverse is true. They will be expected to rise in price if FSN drops in value and to drop in price if FSN increases in value. The Fusion network is a unique host for options markets like this in the Chainge app for many different crypto assets.
7. Collateral for borrowing
FSN can also be used as collateral for borrowing on the Fusion network. This allows users to access liquidity without having to sell their FSN. Collateralized loans are used to borrow other assets such as stablecoins or tokens, and FSN is used as the collateral to secure the loan. This can be done through various lending platforms on the Fusion network, such as app.moma.finance which offers a decentralized platform for borrowing and lending with FSN.
FSN holders can participate in the governance of the Fusion network by voting on proposals and decisions related to the development and management of the network. This gives FSN holders a say in the future direction of the network and ensures that the community has a voice in its development. There has been some historic votes made in the past, but the interest around this seems greatest in desperate times.
FSN can be used as gas on the Fusion network, allowing users to pay for transactions and smart contract executions on the network. This makes FSN an essential component of the Fusion ecosystem and ensures that it will continue to have value as the network grows and becomes more widely adopted.
10. Create .fsn domains or other NFTs
On fsn.domains you can mint an .fsn domain for a certain price. Similarily bunnpunk.io enables minting of NFT bunnys, which can be further staked for rewards. NFTs such as these can be traded on https://pasarprotocol.io/
In conclusion, FSN has a wide range of use cases that make it a valuable asset for investors and users alike. From staking and providing liquidity to governance and borrowing, FSN offers a range of opportunities for users to earn rewards and participate in the development of the Fusion network. With its unique time-slicing feature and its role as gas on the network, FSN is a truly versatile asset that has the potential to become a major player in the world of cryptocurrencies.