Fei Protocol genesis locks up $1 billion in ETH, but LPs could face losses
Cointelegraph
Published Apr 05, 2021 01:52AM ET
Updated Apr 05, 2021 04:00AM ET
The launch of Ethereum-backed stablecoin called Fei has locked up almost a billion dollars’ worth of ETH during its genesis event. But the launch hasn't gone entirely as planned for some of its liquidity providers.
The protocol, which launched a genesis event on April 1, introduced a stablecoin that is partially backed by Ethereum and uses bonding curves coupled with direct incentives to maintain the correct peg. These direct incentives penalize price fluctuations moving away from the peg and reward trades that drive prices towards the peg.
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Written By: Cointelegraph
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