Fusion: Test Network Upgrade, Update on Wallet Compromise, Partnership with technology consultant Hortis, YAD Capital will be bringing its alternative credit portfolio to Fusion’s cryptofinance ecosystem, 6 Time-Lock Bounty Campaigns, Live AMA
Biweekly update 18th September — 2nd October
Dear Fusionites, we have exciting news to kick-off the new month.
Firstly, on September 28th 2019, the Fusion swap wallet was compromised, resulting in theft of 10 million native FSN and 3.5 million ERC20 FSN token. Investigations so far show that this is the only wallet affected. Furthermore, as of now, the team has not received any report that other holders’ wallet were impacted. After the currency was stolen, abnormal wash-trading behaviour occurred, and some of the stolen tokens were sold across exchanges, in particular Bitmax and Hotbit. The team provided official update on this situation. Details are in our report below.
Secondly, Fusion will upgrade its test network at block height 534,500. The upgrade involves expanding the functionality of the consensus code and adding to Fusion API tool kit. Stay tuned!
As of partnerships, last week, Fusion announced it is partnering with a blockchain development house based in Switzerland Hortis to fast-track adoption of the Fusion blockchain. With circa 40 projects exploring how to leverage Fusion’s DeFi development tools, Hortis is a strong addition to the Fusion support ecosystem. Moreover, Fusion has partnered with Yad Capital to bring its credit portfolio on the blockchain.
Also, Fusion announced six exciting bounty campaigns! The campaign’s incentivize community members to help grow Fusion’s social footprint and rewards users for interacting with Fusion’s DeFi tool kit. Lot’s of healthy rewards are up for grabs!
As for the social side, Fusion AMA on Credits Blockchain Platform took place on their YouTube channel on September 20th, and Fusion was a proud sponsor of The Future of Blockchain and Bitcoin meetup in London on September 21st.
Fusionites, we look forward to updating you on all of the Fusion news in October. Watch this space!
Developer activity (from Coinlib.io):
The FUSION test network will undergo a planned upgrade at block height 534,500 (previously expected to arrive on September 29th, 2019).
What does this upgrade involve?
The network upgrade is a hard fork, meaning all nodes will have to transition to the new chain to continue participating in the network. The improvements captured in this upgrade necessitate that the verification node needs to be adjusted, hence the hard fork.
Nodes that do not support the upgrade after block height 534,500, will no longer validate transactions on the Fusion test network.
What updates are included in this upgrade?
1. Check the SnapData data in the block header in the consensus.
2. Upgraded support for private swaps in the consensus.
3. Increase reporting and introduction of punishment mechanisms for ‘Double Blocking’.
4. Update PoS hash calculation method to V2 version.
5. Support transfer of short account numbers (USANs) through Fusion wallet interface.
6. Startup node will only start to buy tickets automatically after syncing to the latest block height.
7. Add interface fsn.getStakeInfo to get staking statistics.
What changes have been made to the APIs?
A. The original API functions remains compatible.
B. Additional API function to enable and disable autobuy ticket purchase and get staking statistics.
C. Modifications of the following API functions to add the optional parameter `toUSAN` to support the transfer of short account numbers (USANs).
What are the steps necessary to execute the upgrade?
The instructions on how to update your node are in the efsn Fusion Github repository.
- If you are building your test-net node from scratch:
Building efsn requires both a Go (version 1.11 or later) and a C compiler.
You can install them using your favourite package manager.
On Ubuntu 18.04, run these commands in order to build efsn:
add-apt-repository ppa:longsleep/golang-backportsapt-get updateapt-get install golang-go build-essentialgit clone https://github.com/FUSIONFoundation/efsn.gitcd efsngit checkout 3.1.0make efsn
2. If you are updating a test net node. to the new code
- Stop running your node
- Go to your efsn installation directory
- Run the following commands:
git pullgit checkout 3.1.0make efsn
4. Redeploy your node
How does the upgrade impact me?
Whether you are holding native FSN, ERC20 FSN or BEP2 FSN, the planned upgrade will not impact you. You do not need to do anything, only the test net is being updated at this point in time.
If you are running a mining node / full node on the Fusion test net, then please download the latest Fusion client: v3.1.0 by following the instructions below. For users that are developing or testing applications on Fusion’s test net, you will need to support the hard fork to continue building.
I am running s mining node / full node on the fusion test net, what happens if I do not update to the latest version?
If you do not update your test net node to the latest version after the upgrade is executed, your client will use the pre-fork consensus rules to synchronize with other nodes that have also not supported the upgrade. Since the consensus rules have changed and are not compatible with each other, clients who do not update will not be able to send transactions on the updated Fusion test net.
What should I do as a service provider such as an exchange, a mining pool or a wallet?
If you are using an efsn client and API services, such as the RPC, API or SDK, please be aware of the changes that have been introduced to the test network. Test your application with the upgraded nodes as soon as possible.
Community members can track upcoming new features, fixes and amendments in the Fusion public Trello board.
If you notice any bugs whilst using Fusion applications or have some feedback that you think may be useful to the team, please submit a ticket on Fusion’s Zendesk!
Fusion crafted a short survey to capture your feedback on their new MainNet functionality. They want to ensure that you have the best possible experience when interacting with their features, please take a few minutes to share your thoughts with them.
September 20th, 2019: Live AMA: Credits, Electroneum & Fusion: Blockchain Technology for Social Impact on Credits Blockchain Platform YouTube channel:
September 21st, 2019: Fusion was a proud sponsor of The Future of Blockchain and Bitcoin meetup, London.
Information from Coinlib.io:
Information from Coinmarketcap.com:
Ethereum ($ETH) is live on Fusion’s Asset Gateway:
What Happened: On September 28th 2019, the Fusion swap wallet (0x8e6bDa71f3f0F49dDD29969De79aFCFac4457379) was compromised, resulting in theft of 10 million native FSN and 3.5 million ERC20 FSN token. Investigations so far show that this is the only wallet affected. Furthermore, as of now, the team has not received any report that other holders’ wallet were impacted. After the currency was stolen, abnormal wash-trading behaviour occurred, and some of the stolen tokens were sold across exchanges, in particular Bitmax and Hotbit.
Cause: Compromise of the swap wallet was due to the Private Key being stolen. The Fusion Protocol and technology itself has been and remains secure.
Remediation Actions Taken:
1. Primary exchanges OKEX, Huobi, Bitmax, Citex, Hotbit have suspended deposit and withdrawal of FSN tokens.
2. All remaining funds in the swap wallet have been transferred to a cold wallet
3. Abnormal transactions are currently being tracked, and there is uncertain evidence showing that theft may have been caused by personnel related to the Fusion Foundation. The Foundation is working closely with exchanges to gather further information and evidence.
4. The team is working urgently to recover the stolen currency through technological approaches.
The Foundation deeply regrets this incident and its impact on the path of Fusion’s innovation. While private key theft is an industry-wide risk and occurrence, they clearly must strengthen the protection around their private keys.
In the face of such a challenge, the team asks for unity and support from Fusion community members with each other and for the Foundation, to get through this trial.
This is an update on Fusion’s efforts on tracking and dealing with the cybercrime executed against the Foundation’s swap wallet on 9/28th.
- The Fusion protocol and technology itself is secure. The hack was executed by theft of a private key.
- As of this writing, only the swap wallet has been affected and the team has not received any report that other holders’ wallet were impacted.
Update on Investigation: The criminal is sophisticated and organized, having opened accounts at Exchanges to liquidate the stolen token well in advance of the theft.
The team continues to cooperate closely with exchanges tracing transactions and identifying which accounts are related to the criminal. Exchanges have stopped trading from these relevant accounts, controlling the loss to token holders going forward. They are going through final transaction audits with Exchanges and will share information on status (how many sold/how many frozen/where tokens are) of the stolen tokens tomorrow.
Furthermore, the team has filed police reports — this was a crime, and will be handled by the authority as such. The full power and reach of the law enforcement agencies will be behind tracking down the criminal.
Next Steps: The most important action ahead of Fusion is to prevent the hacker from monetizing the remaining balance of stolen tokens that have not been liquidated. The Foundation is weighing various options, but at this time, can not share exact details as it will tip off the criminal and may affect impact of their actions. They can share that theirr first priority is to protect token holders, and second priority is fairness to participants.
Outside of this initiative, operations remain business as usual. The project’s survival is not in question. Fusion funds are safe and the team continues to move forward on their technical innovation and meeting their milestones. In addition, they have strengthened internal processes to prevent this type of hack from occurring in the future.
Which Exchanges are Safe?
At the moment, buying in Huobi，Okex，Bitmax，Bibox，Hotbit，and Citex are safe. The team is actively working with other exchanges as well.
The team will continue to provide updates in the coming days, and they are confident that foundation and community can recover.
Over the coming days the team will be activating 6 bounty campaigns that reward community members for helping to grow our social communities and interact with their platform.
With the launch of DCRM on the horizon and the positive adoption progress, they want to see a big uptick in their capacity to spread information and grow awareness. And they need your help!
Enter Fusion’s exciting time-lock campaign! The wonderful thing about time-locked FSN is that in order to monetize them you need to learn a little a bit about what makes Fusion so special.
Today, there are three ways to monetize the front-end value of time-locked FSN.
1. Set up your own node and contribute the time-locked FSN to staking.
2. Send your time-lock FSN to one of the numerous community staking pools and earn rewards.
3. Swap your time-lock FSN for complete FSN in the quantum swap marketplace.
All of these options require basic understanding of Fusion’s time-lock concept, staking model and quantum swap feature, meaning not only can the team build the community but they can also educate new joiners.
Bounty 1: Add new joiners to the official Fusion Telegram Channel
The first bounty competition incentivises participants to invite/refer their friends to the Fusion Official Telegram Channel.
Bounty 2: Join the Fusion Twitter Bounty Campaign!
Follow Fusion’s official Twitter handle. Like and Retweet Fusion Tweets for the week.
Bounty 3: Staking Ticket Bounty
Increase the number of tickets that your node is staking and earn extra rewards.
Bounty 4: Generate a Universal Short Account Number (USAN)
We are encouraging new joiners to experience the simplicity of the USAN. A total of 700 newly created USAN owners are eligible to win rewards.
Bounty 5: Main Net Token Swap Bounty
Transition your ERC20 FSN tokens to native FSN coins on Fusion Main Net and earn rewards.
Bounty 6: Quantum Swap Bounty
The Fusion foundation is releasing an exciting swap deal in the Quantum Swap marketplace for users to take advantage of.
Check out an updated Fusion roadmap:
March 28th, 2019 — Payable Stage Network 2.0 Launch
June 30th, 2019 — MainNet Launch
Quantum Swap Feature Enhancements
Expansion of Asset Gateway
DCRM 5.0 Integration with MainNet
Virtual Machine Enhancements
Finance Product Development Module
H1 — Decentralized Oracle for Multi-trigger Smart Contract
H2 — Scalability Improvements
Partnerships and team members
Hortis is a blockchain development house based in Switzerland that positioned itself as the leading technical resource for decentralized application development. With circa 40 projects exploring how to leverage Fusion’s DeFi development tools, Hortis is a strong addition to the Fusion support ecosystem. Hortis joins Stockup, Geneva University, Nimbus-t and others as a Swiss-based partner of Fusion, an area where the team is focused on establishing a significant presence.
“We are working to cement our position as a top-tier blockchain consultancy and are targeting projects like Fusion that we believe have immense potential,” said Christian Broillet, Senior Consultant at Hortis. “We look forward to providing our expertise to support the growing list of companies looking to build decentralized applications on Fusion’s interoperable architecture.”
Fusion’s MainNet that was custom built to tackle decentralized finance launched on the 30th of June and is currently running smoothly as it is supported by 300+ nodes. Innovative DeFi functions were built into the Fusion blockchain at the protocol layer to enable easy digitization, peer-to-peer swapping and time-value extraction. Another Fusion innovation known as Distributed Control Rights Management (DRCM) is slated for release in Q4 2019 and has the industry buzzing. DCRM purports to solve the industry wide problem of interoperability between blockchains. Fusion is on the hunt for technology providers to help serve the heavy demand for blockchain development resources.
“Hortis is another high-quality technology integrator excited to build on top of our infrastructure,” said Dejun Qian, CEO of Fusion. “We are thrilled to have technology partners jump on board to learn about our core infrastructure and development tools and support our growing list of partners.”
Founded in 2002, Hortis now has more than 50 employees. HORTIS SA’s offers cover all the expertise necessary to successfully carry out IT development projects: project management, business analysis, UX/UI design, software development and deployment. In 2010 HORTIS SA created Le Studio, our Digital department dedicated to mobile and web application development projects. In 2018 HORTIS SA created Le Block, our Blockchain Factory dedicated to blockchain application development projects. Innovation is at the heart of our development strategy. To learn more about Hortis, click here.
Fund co-founded by Goldman Sachs trader filling $1.2 trillion SME funding gap with digital assets
New York, September 26th, 2019 — Fusion Foundation announced that YAD Capital will be bringing its alternative credit portfolio to Fusion’s cryptofinance ecosystem. The borderless efficiency and fractionalization of assets enabled by blockchain will broaden YAD’s reach to both underserved merchants in need of funding and to more investors globally, democratizing the search for yield.
YAD Capital was co-founded in 2017 by former Goldman Sachs Managing Director David Perez, and former private equity investor and Lehman Brothers investment banker Daniel Rubin.
Following the 2008 market crash, credit options for small to medium-sized enterprises (SMEs) became severely restricted. The World Bank estimated in 2018 that 70% of SMEs were unable to access credit yet accounted for half of GDP and only three out of four SMEs were able to get financing while 75% were unable to secure small business loans.
YAD found its niche meeting this funding gap with merchant cash advance businesses, where carefully selected SMEs exchange a portion of their future receivables for cash up front. YAD offers a promising alternative source of funding too often withheld from SMEs that need it most, due to the inefficiencies of existing funding options and a lack of awareness of new alternatives like YAD.
To date, YAD has invested nearly $50 million in cash advances, closing its most recent fund in April. YAD selects deals dynamically and invests in businesses that present the best risk-reward by taking a large number of underwriting criteria into account and looking at risks at the portfolio level, both from a micro and a macro angle. With several of its investments yielding 12% or higher returns, YAD’s investment options are a boon in today’s low — even negative — interest rate environments.
As YAD gained expertise in this space, it observed various inefficiencies introduced by middlemen and lack of transparency. Third-party brokers often take exorbitant fees for connecting merchants to cash advance providers. In many cases, brokers are incentivized by the volume of business they transact, and thus encourage merchants to over-leverage themselves. To make matters worse for the industry, through the practice of “stacking” — the equivalent of taking multiple “liens” on receivables — investors often find themselves suddenly subordinated to other claims.
Partnering with Fusion, YAD will initially be digitizing its portfolio to help SMEs more easily monitor cash advances and drawdown activity. The partners are planning to mirror the next $10 to $20 million of cash advance vehicles on Fusion’s blockchain by the end of 2019 and have already started integration using its recently closed $5 million deal as a pilot.
“Bringing its portfolio onto the blockchain brings real-time transparency for investors and merchants, while giving some merchants a digital identity for the first time,” said Fusion Foundation founder and CEO, Dejun Qian. “It eliminates the need for costly and time-consuming fundraising roadshows while enabling YAD to deliver truly borderless investing in opportunities to which investors might not otherwise have access.”
In addition to providing real-time visibility into performance, YAD will use its detailed metadata on merchants (such as credit quality, sectors and cashflow profile) to create data-driven investment analytics and granular investment products that meet investor risk profiles not otherwise available today. Finally, through digital IDs and receivables being put on blockchain, investors and banks will benefit from transparency into merchants’ true credit state, creating a safe investment environment.
“As technology continues to redefine the financial markets, we look forward to helping digital asset issuers and investors build confidence in blockchain’s potential for streamlining information access and management,” said David Perez, Co-Founder of YAD Capital. “Longer term, our ability to also reach more investors globally with unique investment opportunities is very exciting.”
Beyond documenting YAD’s off-chain investment and cash advance activity, Fusion’s growing ecosystem of crypto-asset platforms such as Realio and Liquidity Digital are set to offer legally compliant Reg-D digital assets like YAD’s when they are available, subject to regulatory approval. Accredited investors will then be able to purchase and secondarily trade the securities on exchanges and trading venues.
About YAD Capital
New York-based YAD Capital is an alternative asset management firm that seeks to generate attractive risk-adjusted returns by opportunistically investing in financing products with average duration under two years and expected yields ranging from the low-teens to mid-twenties. YAD Capital builds its portfolio through extensive due diligence and investment selection to ensure compliance with its strategy. Founded in 2017, the YAD Capital strives to provide uncorrelated alpha, low volatility, and diversification. To learn more, click here.
The information is taken from fusion.org
Social media metrics
Social media activity:
Social media dynamics:
Fusion community continues to grow slowly. Social media dynamics shows that it remains virtually unchanged. There is a slight fluctuation in the number of subscribers of Fusion social media channels these weeks.
Twitter — Official announcements channel. An average number of retweets is 30–60 for one post.
Fusion Community Twitter: since October 19th, 2018. Not active since November 26th, 2018.
Fusion Announcements Telegram channel — Official announcements. About 2,5K followers.
FUSION Developers Announcements Telegram channel: Tech discussion.
Facebook (till May 2018) — Announcements, 10–15 likes, 1–2 shares.
Bitcointalk.org: since January 20th, 2018. Discussion on PSN, latest news, price, etc.
Check out the Fusion forum.
The graph above shows the dynamics of changes in the number of Fusion Facebook likes, Reddit subscribers and Twitter followers. The information is taken from Coingecko.com.