Fei Labs raises over $1.2 billion for its stablecoin project
April 4, 2021, 9:39AM EDT
1 min read
Fei Labs, the firm behind the Fei Protocol stablecoin, raised 639,000 ETH, roughly $1.27 billion at current prices, in commitments for its Fei Protocol stablecoin on Saturday.
The ETH raised will be used as collateral to mint Fei stablecoins. According to Fei Labs, over 17,000 unique addresses participated in the "Genesis" event of the Fei stablecoin. As The Block Research writes, the Fei stablecoin uses a "Protocol Controlled Value" to sell and buy back supply to maintain its $1 peg. The Fei Protocol also disincentivizes sellers of its stablecoin below its peg by enacting a growing burn penalty for Fei sales.
With its raise, Fei Labs also provided liquidity on Uniswap, immediately making it the largest pool on the decentralized exchange with over $2.6 billion in liquidity.
Today the always-on demands of online markets have to be matched with the ability to access opportunities instantly and with no limits. Historically correspondent banks would move large sums of money for those needing to transfer funds while creating bottlenecks of unnecessary friction.
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.