Fei Labs raises over $1.2 billion for its stablecoin project

Apr 4, 2021 | The Block News | 0 comments

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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 raised ETH 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.

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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