Fusion is a dual-peg money layer launched by Lume.Finance (FrogsClub) and treasury-backed by FrogsVault.
We combine an XPL tracker (LUX) that mints expansion when above its peg (and performs a daily rebase), a partially-collateralized USDT0 stable (ARC), and a simple Boardroom where FUSION stakers are paid every epoch (6h).

• Chain: Plasma (XPL)

• Tokens: LUX (mint-based expansion when above peg; daily rebase), ARC (partial-collateral, peg 1.00 USDT0), FUSION (share)

• Epoch: 6 hours

• Boardroom cadence: every epoch (6h) distribute:

  • ARC (from buybacks funded by on-chain yield, e.g., Aave USDT0)

  • LUX (only when LUX ≥ 0.99 XPL, per LUX Expansion Allocation)

• DEX venue: Curve (ERC-20 LPs; no NFTs) — ARC/USDT0 Stableswap, LUX/XPL Crypto, FUSION/XPL Crypto

• Backed by: FrogsVault (initial liquidity + treasury runway) 🐸

Plasma needs two clean primitives:

1. a yielding USDT0 rail for payments/liquidity (ARC), and

2. a chain-aligned asset that tracks XPL without NFT LPs or wrappers (LUX).

Fusion delivers both, plus a Boardroom that pays out every epoch, giving holders a steady rhythm:
USDT0 yield in → ARC buybacks → ARC to stakers, and when LUX ≥ 0.99 → mint LUX → LUX to stakers.
One venue (Curve), fungible LPs, and a vault-anchored treasury from FrogsClub. ✨

• Role: Elastic XPL tracker with two stabilization tools.

• Mint expansions (epochly): when TWAP(LUX/XPL) ≥ 0.99, protocol mints LUX per epoch based on deviation (initial cap ~1–1.5% of supply/epoch).

• Daily Rebase (once per day): automatically adjusts total supply up to +1% (expansion) / −2% (contraction) if TWAP is outside 0.98–1.08 XPL.

• Allocation of newly minted LUX (when above peg):

  • 50% → Boardroom Rewards (paid this epoch)

  • 40% → FrogsClub Vault (treasury growth & POL)

  • 10% → Dev & Marketing

• Peg: 1.00 USDT0.

• Mint: deposit α USDT0 + burn (1−α) worth of FUSION.

• Redeem: burn ARC → receive α USDT0 + (1−α) FUSION (or from a redemption buffer).

• Collateral leg: USDT0 is staked on Aave to earn on-chain yield, used for ARC buybacks each epoch.

FUSN is the value & coordination token of Fusion Protocol. Holders:

• Stake in the Boardroom to receive ARC every epoch (6h) and LUX during above-peg (≥ 0.99 XPL) epochs.

• Back ARC minting: each ARC mint burns FUSN for the (1−α) leg → structural demand sink.

• Bootstrap liquidity: MasterChef emissions reward LPs (Curve LP ERC-20s, not NFTs).

• Govern (phased-in): starts with multisig + timelock; can move to Snapshot/on-chain later.

Max supply: 100,000 FUSN (hard-capped)

Genesis mint: only non-emissions buckets mint at TGE; the 35% mining bucket remains unminted and is released via MasterChef on schedule.

• Emission bucket: 35,000 FUSN (maximum).

• Decay: 2% weekly (governable).

• Initial weights (first 4 weeks): ARC/USDT0 LP 50%, FUSN/XPL LP 30%, LUX/XPL LP 20% (starts once LUX/XPL pool is live).

• ARC mint burn: (1−α) worth of FUSN is burned per ARC mint → enduring sink.

• Buyback & burn/lock: PSM & fee revenues buy FUSN to burn or lock (anti-dilution).

• Redemption Reserve: ARC redeems pay the FUSN leg from reserve, preserving the hard cap.

• ARC mint on: α = 1.00 (USDT0-only) with small fee bands.

• Pool: ARC/USDT0 (Curve Stableswap-NG).

• Seed: FrogsVault POL (target $50–100k total depth).

• Rewards: FUSN emissions for ARC/USDT0 LP (MasterChef; ERC-20 LP).

• Aave: deposit a guarded portion of ARC’s USDT0 collateral; yield accrues.

• Boardroom: ON after ~48h — every epoch (6h) pays ARC (buybacks). (No LUX yet.)

Gate → Phase 2

• ARC/USDT0 POL ≥ $50–100k, and

• 30m TWAP deviation ≤ 20 bps, and/or

• 24h volume/TVL ≥ 8–12%.

• Pool: FUSN/XPL (Curve Crypto 2-coin), seed $20–50k.

• Rewards: FUSN emissions for FUSN/XPL LP (MasterChef).

• Boardroom: continues every epoch — ARC only (until LUX is live).

• Comms: launch peg dashboard (ARC deviation, α, Aave APY, epoch payout timer).

Gate → Phase 3

• FUSN/XPL POL ≥ $20–30k, and

• ARC/USDT0 peg within ±50 bps for 48h.

• Pool: LUX/XPL (Curve Crypto 2-coin), seed $20–50k.

• Mint expansions (epochly): when TWAP(LUX/XPL) ≥ 0.99, mint LUX per epoch (cap ~1–1.5% of supply).

• Daily Rebase (1×/day): if TWAP is outside 0.98–1.18 XPL, apply up to +1% expansion / −2% contraction.

• Boardroom: every epoch now pays ARC + LUX (LUX only if ≥ 0.99).

• Rewards: add LUX/XPL LP to MasterChef.

ARC/USDT0 — Curve Stableswap-NG

• A (amp): 100–150 · Fee: 0.02–0.04%

• Oracle: EMA half-life ~30–45 min (ma_exp_time)

• Ops: Slippage guard 0.2–0.3% on USDT0→ARC buys for Boardroom

FUSN/XPL — Curve Crypto (2-coin)

• Fee: factory default · Seed: $20–50k

• Note: set price_scale to seed valuation; allow EMA to adapt

LUX/XPL — Curve Crypto (2-coin)

• Mint-based expansion cap: ~1–1.5%/epoch; above-peg defined as ≥ 0.99 XPL

• Daily Rebase: ±1% / −2% if outside 0.98–1.18 band

• Oracle: 45-min TWAP window · Seed: $20–50k near 1 XPL reference

• MasterChef weights (Weeks 1–4):

  • ARC/USDT0 LP — 50%

  • FUSN/XPL LP — 30%

  • LUX/XPL LP — 20% (begins in Phase 3)

• Decay: total emissions -10–15%/week (preserve runway).

• Boardroom (every epoch):

  • ARC from USDT0 yield buybacks (Aave → yield → buy ARC → distribute).

  • LUX only when LUX ≥ 0.99 XPL, per 50/40/10 allocation (Boardroom / FrogsVault / Dev+Mkt).

• ARC controller: raise α faster on discount (e.g., +1% step) and lower slowly on premium (−0.25% step); daily cap on change.

• Aave guards: deposit cap ≤ 70% of ARC’s USDT0 collateral; utilization > 90% or APY < floor → pause top-ups; keep ≥ 3 days redemption buffer.

• Expansion & rebase pause: if oracle spread (Curve EMA vs. secondary) > 1%, pause LUX expansions for one epoch and rebase for one cycle.

• Circuit breakers: widen PSM fees + redemption queues if ARC deviates beyond bands; temporary emission boosts to ARC/USDT0 LP if needed.

1. Provide liquidity
   Add to ARC/USDT0, FUSN/XPL, or LUX/XPL on Curve (as each pool goes live).

2. Stake LP tokens
   Deposit ERC-20 LPs into MasterChef to farm FUSN.

3. Stake FUSN → Boardroom
   Get ARC every epoch, plus LUX during above-peg (≥ 0.99 XPL) epochs.

4. Track it all
   Use the dashboard for peg deviation, α, Aave APY, epoch countdowns, and emissions runway.

• Why Curve? ERC-20 LPs (no NFTs), efficient stables, robust crypto pools, and on-chain EMAs.

• Do I need NFTs? Nope. All pools here mint fungible LP tokens you can stake in MasterChef.

• How often do I get paid? Every epoch (6 hours) — ARC always; LUX only if ≥ 0.99 XPL.

• What if LUX is below 0.99? No LUX minted that epoch; ARC payouts continue as usual.

• Who funds the treasury? FrogsVault backs initial liquidity/runway and receives 40% of LUX expansions (when above peg) to grow POL.

• Dashboard: ARC TWAP deviation (bps), α (now & 24h), Aave APY/utilization & 7/30d realized yield, FUSN staked, ARC+LUX paid per epoch, pool depths, emissions runway.

• Reports: weekly peg/treasury updates; parameter changes via timelock; public post-mortems if any pauses trigger.

This announcement is informational and subject to change; it is not an offer or solicitation. Parameters, allocations, and schedules are governed on-chain and may be updated by governance/multisig with timelocks.

• Site: https://www.fusionxpl.fi

• App / Docs / Status: TBA at TGE

• By: Lume.Finance (FrogsClub) — FrogsVault-backed launch