Fei Protocol Launches Its StableCoin Project, Locking Up $1 Billion ETH

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Earlier this Saturday, FEI Protocol held its Genesis event, successfully raising over 639,000 Ether — approximately $1.3 billion — in commitment for its stablecoin. The Ethereum raised for the project will be used as collateral to mint its stablecoins, which uses bonding curves to maintain a peg of $1. FEI’s protocol mechanism also allows for direct incentives, which is “more capital efficient, has a fair distribution, and fully decentralized.” According to the project, over 17,000 addresses participated in the event, providing $2.6 billion in liquidity to Uniswap. 639K $ETH committed and $1.3B $FEI Minted Through Protocol Controlled Value, the $FEI – $ETH pair is now the largest pool on @Uniswap https://t.co/JvSWh6idBm — Fei Labs (@feiprotocol) April 3, 2021 Potential Controversy for FEI’s Mechanism? However, the project has already received criticism for its mechanisms. FEI’s use of protocol controlled value (PCV) means that, when users deposit collateral, their funds cannot be…

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