TL;DR

Fusion, built by IPOR, is an on‑chain yield‑optimization platform that lets users earn through curated, automated strategies without needing to actively manage positions. Users deposit into composable vaults that deploy capital across multiple DeFi venues, covering strategies such as lending, looping, and carry trades. Fusion offers additional upside through Fusion Points incentives tied to vault deposits, AMM liquidity provision, and referrals.

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A DeFi product from IPOR called Fusion is designed to make earning yield easier, by packaging strategies across a range of vaults that route capital into multiple DeFi venues. Instead of constantly rebalancing positions, users can benefit from automation and take advantage of the platform’s curated and managed strategies.

Before we look at how it all works, be aware of the risks, which include the possibility of frontend attacks, smart‑contract exploits, and stable‑coin de‑pegs. Also, keep in mind that funds deposited into Fusion vaults are deployed across external DeFi protocols with varying levels of smart‑contract security, meaning different vaults can carry different risk profiles.

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What Is Fusion?

As an asset‑management and yield‑optimization framework, Fusion can be thought of as an execution layer on which DeFi strategies can be deployed, with user funds deposited across various chains in order to earn yield without the need for active management.

In a comparison with the TradFi world (titled All Roads Converge: How Fusion Bridges TradFi and DeFi), Fusion itself makes references to Aladdin (BlackRock’s investment‑analysis system) and to prime‑brokerage platforms at Morgan Stanley and Goldman Sachs, as it provides similar kinds of infrastructure, but built for DeFi.

Fusion vaults are intended to be composable and transparent, and there’s an emphasis on DeFi‑TradFi integration, as Fusion discusses RWAs as on‑chain collateral, and the emergence of DeFi‑native money markets. Security is also prioritized, and Fusion reports that it has suffered no exploits or hacks since launching in 2021.

Fusion is built by IPOR, which is a stack of protocols and smart contracts that includes applications focused on interest‑rate derivatives, alongside liquidity pools and an AMM, and there is also – in true DeFi fashion – a DAO component.

Fusion vaults are curated by strategists and asset managers, but users should check the individual strategies at work, and it’s always a good idea to review the official documents before transacting with any protocol.

Of course, the purpose of using Fusion is to earn on your assets, so another positive is that users can gain further rewards in the form of Fusion Points. These can be earned by depositing assets, and if points are your priority, then providing AMM liquidity currently offers a 15× multiplier, compared to up to a 10× multiplier for depositing to vaults, while you can also pick up a 10 % referral boost.

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How to Use Fusion

Operating across Ethereum, Arbitrum, Base, Plasma, Avalanche, and other chains, Fusion vaults take in yield‑earning strategies such as looping, carry trades, arbitrage, and lending. From a user perspective, the process is simple: once funds are deposited, the protocol takes over.

Providing AMM Liquidity

Once you’ve connected your wallet, if you hover…

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