Documentation
How FUSE3 works
What FUSE3 is
FUSE3 is a Solana token whose trading fees are paid to holders as SOL, turned into liquidity holders own, and used to buy back and burn FUSE3.
Most reward tokens send you a second token. FUSE3 sends you a share of the FUSE3/SOL pool itself — an LP token, which is a claim on both assets in the pool and on the fees that pool earns from then on.
How a cycle works
The protocol runs on a fixed cycle. Each cycle:
- Fees are claimed. Trading activity generates SOL fees. The protocol collects them.
- The fees are divided. Into liquidity, holder rewards, buybacks, and the protocol’s own costs.
- Liquidity is paired. The liquidity portion is split in half. One half stays as SOL, the other is swapped to FUSE3, and both are deposited into the FUSE3/SOL pool. The deposit mints LP tokens.
- Rewards are sent. The reward portion is sent to holders as SOL, in proportion to how much FUSE3 they hold.
- FUSE3 is bought and burned. The buyback portion purchases FUSE3 on the open market and destroys it, permanently reducing supply.
The LP tokens minted in step 3 are distributed to holders each cycle, in proportion to holdings, once enough has built up to be worth sending.
What you actually receive
Two things, each cycle.
SOL rewards, proportional to your FUSE3 balance.
LP tokens, also proportional to your FUSE3 balance. Each LP token is a share of the FUSE3/SOL pool. Holding it means you own part of the pool’s reserves and earn a share of the trading fees it collects.
Your share of both is determined by your FUSE3 balance at the moment the snapshot is taken — not by how long you have held, and not by how many LP tokens you already own.
LP tokens are yours
This is worth being explicit about.
The LP tokens sent to you are standard SPL tokens in your wallet. You own them outright. You can hold them, transfer them, or redeem them for the underlying SOL and FUSE3. Nothing locks them and the protocol cannot take them back. Your LP can be viewed and managed on Meteora’s page for the FUSE3/SOL pool, linked from the position page.
Your LP appears as “Meteora LP (MLP)”
It is not labelled FUSE3, and most wallets — Phantom included — treat an unrecognised token as spam and hide it by default. In Phantom it sits under Manage token list or the hidden/spam section.
Do not burn it with a wallet’s “burn spam” or token cleanup tool. That token is your share of the FUSE3/SOL pool. Burning it destroys the share permanently, and the SOL and FUSE3 behind it cannot be recovered by you or by us.
Holding them means your share of the pool keeps earning trading fees. Redeeming them means taking the underlying assets and giving up that position. Both are legitimate; it’s your call.
Where the fees go
Each cycle’s claimed fees are divided as follows.
| Liquidity | 34% |
| Holder rewards | 26% |
| Buy and burn | 9% |
| Team and operations | 31% |
Operations covers the network fees the protocol pays to run each cycle.
Protocol-owned liquidity
Not all of the LP is distributed. Each distribution, a fifth of the newly minted LP (20%) is retained by the protocol and held permanently.
That retained portion is permanently locked in batches as it accumulates. The locked share is visible on Meteora’s pool page, and once locked it can never be withdrawn.
Minimum holding
There is a minimum FUSE3 balance to receive distributions.
Your first LP payout opens a token account for it, which costs about 0.0015 SOL. That’s taken from your next SOL rewards rather than charged to anyone else — small holders may see a cycle or two with no SOL while it’s covered. The position page shows it.
Sending a token to a wallet for the first time requires opening an account for it, which has a small one-time cost in SOL. Without a minimum, that cost could be forced on the protocol thousands of times over by wallets holding trivial amounts. The threshold keeps distributions economic.
The current threshold is 1,000 FUSE3, and is also shown on the position page.
Checking your position
The position page shows, for any address: FUSE3 balance, LP tokens owned, share of the pool, eligibility, and a full history of what has been distributed to that wallet and when — each entry linking to the transaction on chain.
It is read-only. It never asks you to connect a wallet or sign anything. Paste an address and it reads public chain data.
Things worth understanding
Rewards are proportional, not fixed. Your share depends on your holdings relative to everyone else’s. Both sides of that ratio move.
Cycles depend on trading activity. When trading is quiet, the fees collected can be worth less than it costs to send them. The protocol then skips that cycle and lets fees build up until they’re worth distributing.
Fee income starts small. The pool earns a share of trades routed through it, but aggregators only begin routing once it holds meaningful depth — in practice around $600 of liquidity. Below that, most trading goes elsewhere and LP fee income is close to zero. The protocol adds to the pool every cycle, so this is a starting condition rather than a permanent one.
LP ownership is not a yield promise. LP earns a share of trading fees, which varies with volume. It is also exposed to the price of both assets in the pool — the value of a redeemed position depends on what FUSE3 and SOL are worth at that moment, not what they were worth when you received it.
Adding your own liquidity does not increase your rewards. Distributions are proportional to FUSE3 held, not LP held.
Contract
FUSE3 mint address: FUSE3in85PPWaA7BdRucpRyemH69nLQHdCU6NfwfWXqL
The FUSE3/SOL pool is a Meteora dynamic AMM pool. Its address is on the position page.