What is Fuse?

Fuse is an open interest rate protocol that allows users to lend and borrow digital assets. The Fuse protocol enables anyone to instantly create and deploy their lending and borrowing pool. This protocol allows users to choose all their custom parameters and isolate risk rather than using a large lending and borrowing pool on other platforms. Depending on the creator's preference, pools can be made public or private.

How does Fuse work?

At its core, Fuse allows users to enter and exit lending and borrowing positions using unique assets and settings. Fuse pools operate similar to protocols such as Compound or Aave; however, it introduces a new element of customization and presents more options. Essentially, each pool has a specific set of assets that can be "supplied" to earn lending interest and be used as collateral. By enabling supplied assets to be used as collateral, users can borrow from the same set of assets with some exceptions that will be covered later. Pool creators not only build these sets of assets, but they also choose certain parameters such as asset collateral factors (also represented as LTV: Loan to Value ratio). This ratio defines the maximum amount of tokens in the pool that can be borrowed with specific collateral. For example, if the LTV is 85% on RGT in a pool, for every 1 RGT worth of collateral, borrowers can borrow .85 RGT worth of other tokens in the pool. If the price of a user's supplied asset decreases to lower their collateral amount or if the borrowed asset increases to make the borrowed amount exceed the LTV limit, a user's position will be liquidated. Essentially, their collateral will be sold to repay enough of the user's loan until their borrow amount no longer exceeds their supplied collateral. This makes it critical to carefully monitor one's borrowing limit and borrow carefully within the limit.

You can find some example of verified Fuse pools in the picture below.

Rari capital Dai pool

I used the DAI Vault Page: https://v2.rari.capital/pools/dai to Find recent trades on the page and filter transactions using following filters where tx_to_address = '0xafd2aade64e6ea690173f6de59fc09f5c9190d74'
-- Rari Capital: DAI Rari Pool Controller

The first thing we observe is that DAI Vault is allocating tokens in 3 Fuse Pools: Fuse 6 and Fuse 18 and Fuse 7

Conclusion

As you can see, a large portion of the tokens allocated to fuse pools in the DAI Vault belongs to the Tetranode Locker pool, followed by the Olympus Pool Party pool, followed by ChainLinkGod pool.

Aave and Compound are not fuse pools. They are Interest Rate Protocol, so they are not among the pools in the fuse.