The decentralized protocol FEI has successfully turned the switch ON for their stablecoin, which they were working on for a long time.
FEI is a protocol that utilizes the functionality of the direct incentive strategy to run stablecoin. This protocol provides very useful and beneficial features which have led to its success. The fully decentralized protocol is very efficient when it comes to finances, providing much better profits with fewer resources required. The protocol runs on the basis of fair distribution, which attracts many users and traders because everyone knows that they are being treated equally and that no other single individual is gaining any significant advantage over all others. The FEI protocol utilizes self-controlled values to keep its liquid markets.
In a recent fundraiser event formally called Genesis, the FEI protocol had managed to accumulate more than 630,000 Ethereum tokens from users and traders around the globe. It is estimated that more than 17,000 network addresses took part in the raising of an estimated $1.3 Billion. The event also resulted in Uniswap acquiring over $2.6 Billion worth of liquidity, marking the dynamic duo, $FEI, and $ETH now having the biggest pool at Uniswap.
This huge achievement by the FEI protocol was the result of the protocol being very reliable and trustworthy to use, leading to a ton of positive feedback from the community. All of this gathered Ethereum will be used to facilitate the stable coin which they have launched. All of Ethereum will be utilized as collateral for the minting of the stablecoin in which the protocol’s bonding curves will come into action, keeping the peg to a steady $1.
Following the closure of the event, the team at FEI Labs formally thanked everyone who took part in the event with a tweet from the official Twitter account of FEI Labs. The team was extremely grateful for the support, as it led to the successful building of not only the $FEI stablecoin but also the $TRIBE token.
As we know, everything has some flaws. In the case of the FEI protocol, the self-controlling of the value mechanism inside the system has some disadvantages. Submitted collateral does not have the ability to be taken out immediately. Crypto researcher Ryan Watkins has stated in a recent tweet regarding the Genesis event that all of the accumulated Ethereum that the FEI protocol had managed to raise is stuck. If FEI holders do not follow the protocols incentives, then they might have to deal with significant penalties. Ryan said that FEI users would have to wait for the protocol to start doing its job.