Benefits of Fusion

Architecture advantages

Fusion infrastructure was developed to address the needs of both traditional finance (TradFi) and decentralized finance (DeFi) asset managers (Atomists). It offers several key technological advantages:

• No-code Strategy Deployment

• Modularity

• Onchain-enforced Security

• Infrastructure neutrality

• Admin Dashboard - intuitive GUI for Atomists

• Support

Atomists can select from multiple vault configurations to match their needs:

• Public Vault: Visible on the IPOR Fusion webapp, fostering community trust and network effects.

• Private Vault: Hidden from the webapp, ideal for exclusive strategies.

• Whitelisted: Restricted access for select participants, balancing privacy and collaboration.

• Open: Fully accessible, encouraging widespread adoption and liquidity.

Atomists can build multiple strategies - Fusion Vaults - for different base assets, risk profiles, Fuses, etc. Atomists can also build Funds of Funds - ERC-4626 vaults, which sit above multiple Fusion Vaults and can deploy across a diverse range of strategies.

Whitelisting and permissioning can be a compliance-friendly tool for Atomists to meet regulatory considerations.

No-code Strategy Deployment

Atomists can design and deploy complex strategies without coding expertise, using an intuitive interface to configure vaults and Fuses. This accelerates strategy implementation and reduces operational overhead.

Modularity

IPOR Fusion's polymorphic architecture design enables Atomists to mix and match components — such as base assets, markets, and Fuses to create tailored Fusion vaults. This "controlled composability" enables significantly improved transparency and significantly enhanced security when compared to existing solutions.

This modular design enables strategy updates over time while maintaining the security of smart contracts.

Onchain-enforced Security

Security is embedded in smart contracts, ensuring vault operations are transparent and trustless. This eliminates reliance on unverifiable offchain logic, providing peace of mind and optimized yield with minimized risk exposure.

In IPOR Fusion, anything that can be onchain is onchain.

Unlike Fusion, many other onchain asset management solutions build contract calls offchain. They usually use a sidechain construction to validate them, but the calls can be unbounded and potentially malicious. Validation is mostly a blackbox. Fusion offers a restricted onchain investment universe thanks to the Fuse system. All possible assets, markets, and actions are defined by the Atomist, setting limits on what the strategy is allowed to do. Put differently, a Fusion vault is a walled garden - a safe onchain environment where even an AI Agent can play, without being able to go beyond the limits of the strategy. Fusion Vault managers can use offchain logic or delegate the asset management automation function (Alpha) to anyone. Alphas can't instruct Fusion Vaults to perform operations that are not encoded in the onchain Vault logic.

Infrastructure neutrality

IPOR Fusion Atomists are empowered to exercise full control over their asset management workflows, including the ability to establish fully private vaults and tailor their strategies according to their specific requirements. They may also customize the fee structure to suit their business models and extend these vaults as offerings to their existing clientele. Onchain strategies facilitated by IPOR Fusion can further attract new clients based on their risk profiles. From a business perspective, IPOR Labs imposes no exclusivity constraints, allowing Atomists the flexibility to collaborate with other infrastructure providers.

Fusion is a neutral infrastructure. IPOR Labs builds functionality for asset managers to succeed, it does not compete with Atomists.

Admin dashboard

An intuitive GUI enables Atomists to manage permissions, monitor vault performance, and adjust strategies via Web3 wallet interactions, enhancing operational control. Fusion is fully permissionless and vaults can be built and configured at will. IPOR Labs can also guide Atomists through an onboarding phase and even help wire up a vault. After the onboarding phase, the IPOR Labs team can transfer operational control over a Fusion Vault to the Atomist. From that point on, the Atomist is in full control.

Support

IPOR Labs provides comprehensive onboarding assistance to Atomists, guiding them through a structured process to articulate and implement their strategies effectively. IPOR Labs collaborates closely, recommending optimal approaches and can connect them with appropriate Alpha builders where necessary. Both DeFi and TradFi managers may leverage pre-existing Alpha solutions or, with sufficient technical expertise, create their own, ensuring a tailored and supported entry into DeFi.

Verified Fuses

As an Atomist, your responsibility is to create the vault's strategy. Part of that is selecting Fuses that will be used by the Alpha to operate the vault. All interactions with external parties are governed by the fuses. It is therefore vital that you verify the integrity of the Fuses. IPOR DAO keeps a record of the Fuses and their verification status. Also, each Fuse, on this list is open-sourced and verified on Etherscan.

Alphas

Actions that an Alpha can take are limited by the connected Fuses and substrates, actions such as swaps are constrained by the fuse configuration that you, as an Atomist set up when adding or modifying the Fuse list. Configuration is Fuse-specific, but generally, you can limit the tokens that can be used or slippage in case of swapping.

Timelocks

When creating a vault, the Atomist has to decide what the "minimum timelock" should be. This value defines how much time has to pass, from when the Atomist initiates changes to the vault's configuration until those changes can take effect. The minimum timelock will define how fast the Atomist can enact the changes, at the same time it will communicate to vault shareholders how much time will they have to act if they wish to move assets. The timelock can also be set to 0 in which case, all the changes would be instant.

Access Management

Access management in IPOR Fusion is handled by the OpenZeppelin Access Manager. Roles are assigned during vault creation but some can be changed later. Please refer to a dedicated Access Management page