Inside Fusion: The New Bridge to Defi
Fusion is the beating heart of the Flux parallel assets and its Defi prowess. It is pioneering new and innovative mechanics for blockchain integration and trading. Here is a breakdown of what Fusion is and why it is an essential piece of the Flux ecosystem.
Flux powers a decentralized computational network providing infrastructure for more than 20 decentralized applications. Flux provides decentralized infrastructure as an alternative to the many centralized actors that (unfortunately) more or less control all the information on the internet. It is the humble beginnings of a Web 3.0 leveraging blockchain technology to set the internet free and all are welcome to join and grow the network.
The Flux asset itself has many uses within the Flux ecosystem, you can use it for launching and managing applications running on the Flux network, to collateralize and run Flux nodes on the network, for governance in the Flux XDAO, staking (currently exclusive to CoinMetro), for partaking in Decentralized Finance (Defi) across many blockchains and even adds additional security layer for your Zelcore account known as d2FA.
The last part is something unique to Flux. Flux can ‘travel’ back-and-forth to 10 other blockchains and thereby provide holders with unique Defi opportunities. At the heart of this innovative approach to Defi is Fusion, but before we get started on Fusion itself we need to have a look at why Fusion is needed.
Unlocking Defi — Flux parallel assets & parallel mining
A core component for Flux is the ability for Flux holders to interact with 10 additional blockchains through the Flux parallel assets.
A parallel asset is a token that is part of the Flux ecosystem but resides on another blockchain. You can compare them to expatriate citizens. A native to Flux but living abroad. They have all the benefits of the foreign country they reside in, but can always return home, it’s like holding two passports.
For example, A Flux-ETH token lives on the Ethereum blockchain and is no different from any other token on that chain. It can partake in trading on Uniswap, being in a liquidity pool, and so on, it also abides by all the rules on that blockchain such as fees.
Flux will have parallel tokens on 10 different blockchains. So far parallel assets on Kadena, Binance Smart Chain, and Ethererum have been launched. Solana and Tron are announced as the next parallel assets to come online.
All these parallel assets will provide many opportunities for Flux holders as Flux can ‘travel’ to other blockchains and give holders access to the benefits and decentralized exchanges on those chains. The parallel assets can be returned to native Flux or swapped to another Flux token via the Fusion app making Flux a very versatile asset, especially for partaking in Defi, arbitrage trading, and earning through liquidity pools.
The initial supply of a parallel asset is distributed to Flux holders via an airdrop as the parallel assets are launched. So just by holding Flux in the official Zelcore wallet, you can get started with parallel assets.
Parallel assets are also distributed through parallel mining and as rewards for Flux node operators.
Parallel Mining is also unique to Flux and rewards GPU miners not only with native Flux but also with parallel assets. Miners will receive parallel assets in a 1:10 ratio for each of the 10 parallel assets, even the ones not launched yet.
This effectively doubles the mining yield of Flux. Parallel Mining is currently being implemented, but one pool has already implemented it. Be sure to check it out at minerpool.org to see it in action.
Flux node operators also earn parallel assets in a 1:10 ratio to native Flux, the same as GPU miners. For every Flux earned a 10th is also earned across all 10 parallel assets.
Both parallel mining and node rewards have been accumulating since the 27th of March 2021 and eligible miners and node operators will be able to claim their rewards retroactively for all 10 parallel assets as the assets are launched.
Parallel mining rewards are distributed by the mining pools if they choose to support them. So be sure to mine in a pool that has pledged to support it. It is already supported by minerpool.org and will also be supported by the community mining pool fluxpools.net.
The people supporting Flux as holders, miners, or node operators all get rewarded with a golden ticket to Defi through parallel assets. So by supporting Flux they are like a spider in the center of the Defi web catching rewards in all corners of Defi.
The Fusion app is at the center of Flux parallel assets as it is the bridge between native Flux and the 10 parallel assets. Fusion is also used as a means of distributing both the genesis supply of new parallel assets through airdrops as well as distributing parallel assets as rewards for Flux node operators.
Inside Fusion — What does it do?
The Fusion app is found inside of the Zelcore self-custodial wallet, which is the official Flux wallet.
The Fusion app serves three purposes:
- Making swaps between native Flux and parallel assets (launching august 2021)
- Distributing parallel assets through airdrops (live).
- Distributing rewards for Flux node operators (live).
Flux holders will use Fusion as the central hub for swapping between native Flux and parallel assets 1:1. This gives Flux holders great flexibility as their assets can be moved quickly between 10 different blockchains providing great opportunities for Defi trade.
Flux holders can also claim parallel assets airdrops within Fusion if they are eligible. To qualify for an airdrop, you simply need to hold Flux in the official Zelcore wallet when a distribution snapshot is taken. Snapshot details will be announced on the official Medium, on Twitter, and on the official discord.
Flux node operators can claim their parallel asset rewards at any time through Fusion by providing their node's public address and private key.
As Flux parallel assets interact with 10 different blockchains there are fees associated with it. The parallel assets each need to abide by the fees of the blockchain it travels to or from. While Flux itself has very low fees this is unfortunately not the case for every blockchain.
When using Fusion fusion for a swap or for claiming an airdrop or node reward a fee will be charged. The fee is paid by converting Flux to the asset needed to pay the fee on the blockchain native to the parallel asset.
For example; When interacting with Flux-KDA a fee will need to be paid in KDA. This is handled by Fusion on the backend by converting Flux to KDA in order to pay the fee. The fee comes out of the parallel asset amount being claimed or swapped. All fees are clearly displayed on the Fusion interface so the user can preview them.
The fees associated with Fusion will vary based on a number of variables, such as the price of the ‘gas’ asset (be it eth, bnb, kda), the price of flux itself, and current network demands.
Be sure to join the official Flux discord to discuss Defi opportunities, parallel mining, node operations and get friendly advice and support for all things Flux.
You can Flux-IT!
Flux is hard at work building a decentralized internet. Whether you’re interested in investing, running nodes, mining, or building and deploying decentralized applications feel free to join Flux as we continue towards a decentralized future. All are welcome.
Be sure to learn more about Flux by visiting the official Medium as well.