Fei USD Protocol is a decentralized stablecoin project. The native token of the project, which aims to expand and develop the concept of stablecoin, is FEI.
What is Fei Protocol?
Fei protocol, Fei Labs Inc. It is a fully decentralized stablecoin project developed by The project aims to develop the concept of stablecoin by applying various innovations. In addition to a stabilization mechanism called Protocol Controlled Value (PCV), Uniswap uses a number of other mechanisms to keep its liquidity pool and its native stablecoin, the FEI, close to the exchange rate of the US dollar. It also offers a native governance token called TRIBE.
Fei USD Protocol managed to raise $19 million from major industry venture capital firms in March 2021. Users who want to support the Fei project at the launch stage can purchase tokens at a discounted price of $0.50 or more. The primary release target was set at 100 million FEI as the development team decided that this would be sufficient to integrate the FEI with other DeFi protocols. After the discount phase ended, users were required to deposit $1.01 worth of ETH to be able to issue $1 of FEI. This approach has allowed Fei to accumulate large ETH reserves and provide a fast and efficient stablecoin to its users.
It is important to know how the ETH token is used. The project creates an FEI/ETH liquidity pool on Uniswap (the largest decentralized exchange on Ethereum’s blockchain), which provides an immediate liquid secondary market for the stablecoin. Fei protocol itself is the main liquidity provider for its stablecoin, which sets it apart from other algorithmic stablecoins that attract third parties using token inflation.
What is FEI?
FEI is an ERC20 stablecoin specific to the Fei protocol. It is a decentralized stablecoin that uses a variety of mechanisms (in theory) to maintain a more efficient and fairer allocation of capital than other projects. The purpose of the Fei protocol is to create a liquid market where FEI/ETH can be traded close to the ETH/USD pair.
Unlike many other tokens, the FEI’s token supply is basically unlimited. It is governed by miner and burner contracts that control the coin release through bonding curves and trade incentives. The FEI token represents some non-standard functionality of ERC20, but this only applies to a subset of transactions.
The ETH binding curve will have a target supply of 250 million FEI set as the bootstrapping target. Also known as the “scale”, this target will be the point at which the FEI will fix its price at $1.
The FEI’s peg is governed by two key elements of the Fei protocol:
- Protocol Controlled Value (PCV)
- Direct incentives
How to Buy FEI?
In order to buy FEI coins, it is first necessary to know the exchanges where this cryptocurrency is listed. Then you have to create an account on one of these exchanges and log in to the account. After logging in, you must load balance into the passbook. Top-up can be done by credit/debit card or bank transfer. After loading the balance, you can purchase the desired amount of FEI and keep them in a hot or cold wallet.
Some of the cryptocurrency exchanges where FEI coins can be purchased are:
- Gate.io
- MEXC
- bibox
- Uniswap v2
- jubiy
