Frequently asked questions
Fuse is a decentralized protocol for creating tracker tokens that follow the price of any specified asset with a published price. Users can purchase tokens that for example, track the price of the S&P 500 or a barrel of oil.
Crypto markets are missing basic financial building blocks available in traditional markets: indexing, leverage, and shorting. Investors are unable to express complex investment ideas using tokens. We are seeking to empower investors with new tools that unlock the growth of tokens as an asset class.
The profits from existing financial markets and instruments belong to a small group of financial institutions.
Tracker tokens can be created for any asset that has a reliable price source. Obvious examples include oil, real estate, cryptocurrencies, and equities. Fuse enables leveraged and inverse tracker tokens, so creating an inverse S&P 500 or 2x BTC token takes a few clicks.
With Fuse, it’s also possible to create novel tracker tokens that allow investors to gain exposure to assets that were previously not liquid enough to support a fund or ETF. For example, if an investor had conviction that the price of real estate in Chicago would decline, they could create a tracker token to express that thesis provided he had a data source on the price of Chicago real estate.
Tracker token prices are indexed to their target asset in a manner similar to a stablecoin. Fuse adopts a hybrid approach to stabilize token prices using both seigniorage shares (e.g. Basis) and collateralization using tokens (e.g. Maker) along with several novel mechanisms.
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