Market Analysis of Fusotao Protocol (TAO), Near Ecosystem Verification Protocol

I. Project Introduction
The Fusotao Protocol (TAO) is a matching verification protocol for the Near ecosystem’s order book-based matching system. For the purpose of providing the supporting framework for order book-based DEXes, the protocol employs the approach of “on-chain proof, off-chain settlement.”

Project stakeholders can build their own order book DEX based on the Fusotao protocol. Community users can also earn rewards by trading on the DEX or pledge her TAO tokens on her DEX built on the Fusotao protocol to cover processing fees for sharing transactions. You can also.

The current DEX lead project, Uniswap, has the advantages of ease of use, low gas consumption, and censorship resistance, but Uniswap based on the AMM model also has certain limitations:
1.You cannot choose the price for buying and selling on your own; instead, you must accept the price set by Uniswap. You also cannot make an order to trade at a certain price.

2.In addition to gas costs, problems such as miners going out of control will also occur.

3.In many decentralized exchanges and applications, front running is a concern. To put it simply, your transaction price will differ from the predicted price because other users will have the chance to perform another transaction between the time you transmit the transaction and the time it is added to the chain. While you suffer, the other party gains.

Compared with Uniswap, Fusotao has to solve the below problems:

1. Its “on-chain proof, off-chain settlement” method can achieve zero-gas, low-cost transactions

2. The order book mode can freely place orders and avoid trades being pre-empted.

3. Off-chain storage and matching, on-chain verification, faster trading speed.

4. Same trading experience as CEXs.

5. Assets are always at the user’s control. Any decentralized wallet can be connected to Fusotao’s DEX, and users can choose whether to trade or not after verification.

MEXC is the world’s leading cryptocurrency trading platform that provides one-stop cryptocurrency trading services such as spot, ETF, futures, staking, and NFT index, serving over 7 million users worldwide. increase. The core team has a solid background in traditional finance, with specialized financial product logic and technical security assurance related to cryptocurrency products and services. In October 2021, MEXC Global won the title of Best Cryptocurrency Exchange in Asia. Currently supporting the trading of over 1,400 cryptocurrencies, it is the trading platform with the fastest launch of new projects and the most tradable categories. For more information, visit our website and blog and follow MEXC Global and his MEXC Research.

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