The world's fastest modular execution layer
Dear Investor,
The long-awaited project day has finally arrived, and we're incredibly proud of securing this deal in our portfolio.
It was a challenging endeavor, and we believe many of you will recognize its significance. This deal stands out as one of the most compelling opportunities in our venture capital portfolio. Moreover, it not only offers financial advantages but also boasts a flawless launch plan and vesting structure. This project may not be a small-cap venture, but it positions us uniquely in the market without the usual hefty upfront costs.
We're going big on this project to diversify our portfolio and boost our returns. It's a fast-rising modular blockchain, initially a layer 2 rollup, now a key competitor to Aptos, SUI, and Celestia. This marks our venture's first major layer 1 investment, a rarity in the crypto world.
Prior investments in our portfolio along with assets like Fuel, aim to replicate the success of tokens like SO, LINK, and LINEA in the new cycle. Our goal is to place this project in the top 30 market cap tokens next cycle.
AphX Capital
Fuel Network
Blockchains are moving away from a monolithic design, where consensus, data availability, and execution are tightly coupled. The future is modular, where execution is separated from data availability and consensus (e.g. tomorrow's Eth2, or Celestia). This separation allows for specialization at the base layer, delivering a significant increase in bandwidth capacity. At Fuel we are building the fastest execution layer for the modular blockchain stack.
backers and funds
Fuel v1 began as a layer-2 (L2) scalability technology for a monolithic Ethereum. It was the first optimistic rollup on mainnet Ethereum, deployed at the end of 2020.
Today, Fuel is the fastest modular execution layer. Fuel delivers the highest security and flexible throughput, with a focus on a superior developer experience.
Fuel Mission
As mentioned earlier Fuel has been a layer-2 protocol for Ethereum, but is also situating itself to become the go-to execution layer for the future of modularity. Fuel's strategy to become the place to-go-to is to provide high throughput of Ethereum-style composable smart contract transactions.
They’re still an optimistic rollup. However, Fuel has a very unique design compared to existing optimistic rollups. The uniqueness comes through their UTXO-based design, which allows for parallel transaction execution, which we’ll get more in-depth with later on. Fuel will also implement the ability for operating nodes to accept fees in other tokens than ETH, if they're willing to accept it for transaction fees. This is done by allowing nodes to set up non-primary mempools, where fees are paid in the token that the nodes want to receive.
Optimistic Rollups as fuel
The way rollups work is that anyone is allowed to construct blocks off-chain and then submit them to Ethereum as calldata (which we severely lack, hence the development of blob transactions and eventually the move to sharding). This is done through a rollup contract that keeps track of the block headers of the rollup on Ethereum. In the case of optimistic rollups, a fraud-proof can be submitted and roll back the chain, burn the bonded amount and reward the fraud prover.
Now let’s look at how a rollup node operates, both off-chain and symbiotically with Ethereum.
Rollup users send transactions to a Fuel node, which is done automatically through whatever dApps you’re using on the rollup side. The client/sequencer will then roll up transactions together into a Fuel block, which then gets sent to Ethereum, which confirms the block. The client also handles deposits from Ethereum, which is what I’ve called a bridge contract previously, which enables unified liquidity between the rollup and Ethereum. :oldrevfuel:
So how does Fuel’s fraud proofs work which ensures no malicious actions ?
Once a fraud proof is submitted to the rollup contract, it needs to be validated to check that it has the correct formatting. This is done so that it can ensure that the proof wasn’t maliciously sent. Since if that was the case, a valid block could then be reverted as the result of the illegitimate fraud-proof. The proof verifier contract verifies that the fraud proof is correctly formatted and valid, and if so, processes it to slash the offending rollup block.
This scheme is unique since it does not require state serialization. Which is the action of computing the Merkle root of the state (which we covered in our previous article) after each transaction or block. This is made possible since Fuel uses UTXOs which means that transactions don’t need to be executed in order. This is because you can simply check at the end that every input that was computed, was previously unspent and unique. As a result of this, transactions are able to happen all at once and do not need to be ordered.
Fuel is in close relation to ETH
Fuel originally began as an Ethereum rollup, which means they operate within the Ethereum ecosystem and are part of the Ethereum incubator. This was evident at recent blockchain summits like the one in Singapore, where they played a prominent role as primary partners in discussions with Vitalik Buterin. This demonstrates the project's high level of seriousness and its strong connections within the industry.
our deal
100% on TGE for Seed Investors
We're purchasing tokens directly from the seed round OTC. Their vesting began in 2021 and completed in February this year. This means we'll have 100% of the tokens in hand before the Token Generation Event (TGE). Such early access is quite rare in the industry, especially for a project of this caliber. It's akin to acquiring Aptos and having the option to sell all of it at the TGE.
Tokens in Your wallet, Just Two Weeks Away.
This is a unique project within our venture capital portfolio because the tokens are already in circulation. You can move them around, but you won't be able to sell them until the project officially goes live and becomes public. After we successfully raise funds and sign the contract, you'll receive these tokens in your wallet, keeping them securely stored. You can then monitor the public address established by the Fuel Network.
Tokens on TGE: No Delay Guaranteed.
One challenge with pre-sales is the unpredictable timing of receiving tokens, often taking anywhere from 10 minutes to a couple of hours. However, in this case, you'll get your tokens within the next two weeks, ensuring they're readily available in your wallet right from the moment the project goes live. This provides us with a massive advantage in the market.
Investment round: seed first round
Valuation: 750m
Token launch: end of the year 2023
OUR ALLOCATION: $100,000
MIN: 500$
STABLE COIN: USDT,USDC (BEP20 ONLY)
MAX: 6000$
Fee: 19,5%
