FUSE OTC Deal Engine
A comprehensive guide to professional OTC fundraising for Web3 projects.
FUSE OTC Deal Engine
The Challenge of Traditional Crypto OTC Deals
Over-the-counter (OTC) token deals are a core mechanism for fundraising in early-stage crypto projects. However, when executed without clear structure or integration with market infrastructure, they often result in severe negative consequences:
Post-Unlock Price Volatility
Uncoordinated token releases from OTC rounds frequently lead to abrupt sell-offs. Without protective liquidity mechanisms in place, this behavior erodes token value and undermines market stability.
Misalignment Between Stakeholders
Retail participants often feel blindsided when early investors offload tokens into public markets. This perceived imbalance can fracture community trust and damage long-term token adoption.
Fragmented and Opaque Processes
Traditional OTC deals lack transparency, structured oversight, and meaningful synchronization with downstream market behavior—resulting in poorly timed unlocks and unmanaged liquidity.
The FUZE.ac Solution: A Professional OTC Framework
Smart Unlock Coordination with Market Makers
All OTC token deals managed through FUZE.ac are natively integrated with our AI-powered market-making strategies. Unlock schedules and volumes are shared directly with the MM engine, enabling:
- Pre-unlock liquidity provisioning
- Real-time depth management during release windows
- Spread control and volume absorption modes
This ensures that large unlocks are met with appropriate defense mechanisms, reducing the risk of uncontrolled price drops.
Deal Escrow & Automated Release Logic
Projects can opt for either:
Smart Contract Escrow:
Secure on-chain custody and automated vesting.
Admin-Controlled Releases:
A trusted, manual approach with multi-signature authorization.
Each deal can specify exact unlock parameters (e.g., linear, cliff, milestone-based) and delivery windows, minimizing manual intervention and removing uncertainty from all parties.
Performance-Tied Vesting (KPI-Linked Milestones)
Projects can condition investor unlocks based on the achievement of measurable KPIs, such as:
- Product milestones (MVP launch, feature deployment)
- Exchange listing confirmations
- Verified trading volume or TVL thresholds
- DAO or governance approvals
This reduces pressure from inactive capital and aligns token supply with actual progress.
Full Transparency Across Deal Lifecycle
Through the FUSE Admin Console, all stakeholders (founders, investors, community) can access:
- Live unlock schedule tracking
- Historical release logs
- Current MM strategy mode per trading pair
- Project performance dashboards
This transparency fosters trust and helps ensure that unlocks occur within understood parameters.
Stakeholder Benefits
For Projects
- Raise capital with unlocks aligned to actual liquidity conditions.
- Reduce sell pressure with automated MM support.
- Increase investor trust through transparency and structured mechanics.
For Investors
- Gain early token access with embedded market support.
- Participate in structured deals with milestone-based safeguards.
- Avoid overexposure to illiquid or speculative environments.
For the Community
- Protection from large, unsignaled token dumps.
- Greater predictability and liquidity stability during unlock phases.
- Clear insight into project capital structure and vesting progress.
Comparison with Traditional Tools
| Feature | Traditional OTC Tools | FUSE OTC Deal Engine |
|---|---|---|
| MM-Integrated Unlocks | ❌ None | ✅ Real-time defense |
| KPI-Based Vesting | ❌ Manual, informal | ✅ Smart milestone logic |
| Deal Transparency | ❌ Limited or internal | ✅ Full dashboard access |
| Escrow Automation | ⚠️ Partial (if any) | ✅ Fully automated or admin-signed |
| Price Support at Unlock | ❌ Not managed | ✅ AI MM synchronized |
| Community Safeguards | ❌ Uncoordinated | ✅ Built-in protections |
Technical Integration
- Provide Unlock Configuration: Define unlock schedule (cliff, linear, milestone) and recipient wallet addresses.
- Specify Market Pair: Token/CEX pair for which market-making protection will be applied.
- Connect KPI Sources (if any): Project team can use external or internal APIs to define conditions for milestone-based releases.
- Whitelist Treasury Wallets: Add authorized team/admin wallets for fund reception and distribution confirmation.
The system is built to work seamlessly with FUZE.ac's smart contract modules and MM infrastructure. API access is available upon request.
