- Fei Labs, the firm behind the FEI stablecoins, has raised 639k Ethereum tokens
- The protocol will be using the raised tokens as collateral to mint the stablecoins
- The users who participated in the Fei Protocol Genesis event will receive a pro-rata percentage of the tokens formed by the bonding curve
Fei Labs, the firm behind the stablecoin project, Fei Protocol stablecoin. The protocol uses a Protocol Controlled Value, which helps the dollar-pegged tokens to maintain their value. Recently has raised $1.27 billion in funds for its project. The funds were acquired in the form of Ethereum crypto tokens. According to the announcement, more than 17,000 unique addresses had participated in the Genesis event of their stablecoin.
What will Fei Labs do with the raised ETH tokens?
Following the announcement, it is found that Fei Labs has raised 6,39,000 ETH tokens. At press time, the Ethereum tokens were trading at the level of $2,087. This means the firm has raised approximately $1.27 billion in commitments for its stablecoin project. However, the firm behind the stablecoin has plans to use the acquired funds as collateral to mint the dollar-pegged stablecoins.
On the other side, with the raised funds, the protocol has also provided liquidity on Uniswap. However, in the liquidity pool, the firm deposited more than $2.6 billion. Furthermore, as the firm provided liquidity to the decentralized exchange, it was observed that the FEI-ETH immediately became the largest pool on the platform.
What benefits will the participated users receive?
The Fei Protocol Genesis event was rolled out on 31st March 2021. And the event concluded on Saturday. According to Fie Labs, the users at the event can commit Ethereum tokens as a part of the Genesis Group to bootstrap the network. The protocol also revealed that many unique wallet addresses were observed participating in the event. However, the participating users are expected to get a pro-rata percentage of the stablecoin. Such a percentage is generated by a mathematical formula entitled “bonding curve,” which defines the relationship between the price and the token’s supply.
Many in the cryptosphere speculated regarding the dollar-pegged stablecoin. However, still, after the launch, the protocol has recorded itself to be one of the biggest launches in DeFi history. Following the funds raised by the protocol and how it became one of the biggest pools on Uniswap, the retail investors must be predictably utterly destroyed.
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