The Fusotao protocol is a verification protocol for orderbook-based matching system using the paradigm of “off-chain execution, on-chain verification”. Through the method of off-chain matching, the process of order submission, order matching, certification generation and other processes runs on a centralized off-chain server, which enables traders to obtain the same fast and userfriendly trading experience as CEXs. Through the method of on-chain verification, only when the transactions under the chain pass the verification on the chain, will the user's assets on the chain be changed, thereby ensuring the security of the user's assets.
Fusotao protocol is a set of matching and verification protocols. "execute off-chain, verify on-chain" paradigm is the core of the Fusotao Protocol. Through on-chain authorization and off-chain order-book matching, users can complete transactions and obtain transaction proof without assets custody. The whole process is based on automate trust rather than human trust. The user's assets will not be changed until the matched transaction is proved successful on-chain.
The trading itself is the core of the whole system. Fusotao protocol introduces the Proof-of-Trading to motivate transactions to obtain $TAO rewards. When users trade on DEXs powered by the Fusotao Protocol, they will get $TAO tokens according to the trading volume in one era(about 24hrs ).
