Introduction to the Fei Protocol

Quick Take

  • Fei Protocol acts as an algorithmic pseudo-central bank that issues the FEI stablecoin
  • Crypto-asset collaterals that back the stablecoin are controlled by the protocol and are deployed to Uniswap as liquidity
  • The algorithm penalizes selling and incentivizes buying activities on Uniswap when FEI is trading below the $1 peg
We have recently looked into the current landscape of stablecoins. The number of different attempts of building algorithmic stablecoins that are decentralized and under-collateralized has increased in recent months. Algorithmic-driven stablecoins such as Empty Set Dollar (ESD), Frax (FRAX), Dynamic Set Dollar (DSD), and Basis Cash (BAC) have a combined market capitalization of over 428 […]

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