Fuel (FUEL)

L2 optimistic rollup

Basics

• Based in:
• Started in / Announced on:
• Testnet release: V2 testnet on 9-9-2022, final testnet on 30-5-2024.
• Mainnet release: V1 December 2020, but claimed "mainnet is live" with Fuel Ignition on 16-10-2024.

Audits & Exploits

• Bug bounty program can be found [insert here].
• From L2beat (31-10-2022):

"Funds can be stolen if

1. there is no one that checks the published state. Fraud proofs assume at least one honest and able validator.

Users can be censored if

1. the operator refuses to include their transactions and users lack resources to propose blocks themselves.

MEV can be extracted if

1. the operator exploits their centralized position and frontruns user transactions."

Governance

Admin Keys

• From L2beat (31-10-2022):

"The system has a centralized sequencer. While proposing blocks is open to anyone the system employs a privileged sequencer that has priority for submitting transaction batches and ordering transactions. Because the block production is open to anyone if users experience censorship from the operator they can propose their own blocks which would include their transactions."

Token

Launch

• Sold $15M worth of tokens to FTX, this before Fuel even has announced a token (8-12-2022).

Technology

• Whitepaper or docs can be found here.
• Code can be viewed here.

Implementations

• Built on: Ethereum
• Programming language used: Sway (22-7-2022)

Transaction Details

• Capacity (TPS):
• Latency:

How it works

• From L2beat (31-10-2022):

"Fraud proofs ensure state correctness. After some period of time, the published state root is assumed to be correct. For a certain time period, usually one week anyone can submit a fraud proof that shows that the state was incorrect. All the data that is used to construct the system state is published on chain in the form of cheap calldata. This ensures that it will always be available when needed."

• From Bankless (22-7-2022):

"Fuel is unique in that it uses its own custom virtual machine —  the Fuel VM — with smart contracts written in Sway. This means that unlike most L2s, Fuel is not EVM-compatible. Fuel also differentiates itself through the use of a UTXO model — the same as Bitcoin — instead of the traditional accounts based model utilized by Ethereum and L2s. These unique design choices have allowed Fuel to be highly performant, as the network is capable of validating multiple transactions in parallel, rather than serially (one at a time)."

Fees

• From Bankless (22-7-2022):

"Transactors can pay gas fees in any token — rather than just ETH. Though like any L2, the network must still purchase Ethereum blockspace to verify proofs."

Interoperability

• From Bankless (22-7-2022):

"Rather than a 7-day withdrawal time like traditional optimistic rollups, users on Fuel can bridge back to Ethereum mainnet in minutes using atomic swaps."

Their Other Projects

• From Bankless (22-7-2022):

"The Fuel Labs team recently launched SwaySwap, a decentralized exchange, on devnet. Uniquely, assets on SwaySwap are entirely native to Fuel, meaning they inherit the same functionality as native assets like ETH on Ethereum."

Roadmap

• Can be found [Insert link here].

Competition

• From Bankless (22-7-2022):

"Fuel is unique in that it uses its own custom virtual machine —  the Fuel VM — with smart contracts written in Sway. This means that unlike most L2s, Fuel is not EVM-compatible, a factor that may hinder its adoption. Fuel also differentiates itself through the use of a UTXO model — the same as Bitcoin — instead of the traditional accounts based model utilized by Ethereum and L2s. These unique design choices have allowed Fuel to be highly performant, as the network is capable of validating multiple transactions in parallel, rather than serially (one at a time).

Fuel also boasts improved user experience relative to other L2s. Rather than a 7-day withdrawal time like traditional optimistic rollups, users on Fuel can bridge back to Ethereum mainnet in minutes using atomic swaps. Furthemore, transactors can pay gas fees in any token — rather than just ETH. Though like any L2, the network must still purchase Ethereum blockspace to verify proofs. While their lack of EVM-compatibility may set it on a slower growth trajectory, Fuel’s functionality and throughput relative to other ORUs should help it attract developers and expand usage over the long-run."

Pros and Cons

Cons

• Had investment from bankrupt Alameda Research/FTX, which came out (11-11-2022) during the FTX crash. This could mean fall-out risk. Sold $15M worth of tokens to FTX, this before Fuel even has announced a token (8-12-2022).
• From L2beat (31-10-2022):

"The system has a centralized sequencer."

Team, Funding and Partners

Team

• Full team can be found [here].

Funding

• Eric Wall disclosed himself as an angel investor and/or supporter (24-1-2023).
• Sold $15M worth of tokens to FTX, this before Fuel even has announced a token (8-12-2022).

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