Fantom Blockchain to Release Version 2 of fUSD Stablecoin
Blockchain platform Fantom plans to introduce version 2 of its fUSD stablecoin to provide a more predictable and budget-friendly system for builders, partners and users, developers said in a post over the weekend. They didn't give a timeline for the release.
The new version will allow the stakeholders to allocate fees in either fantom (FTM) or fUSD and to predict future costs based on usage, the developers said. It will allow programmers to build additional institutional products for users and provide a more consistent system for planning and budgeting for grants.
Stablecoins are tokens pegged to fiat currencies, such as the U.S. dollar, and are often backed by a token or a basket of other tokens.
Fantom users can use their FTM to mint fUSD and access decentralized finance (DeFi) applications built on the system, such as those for lending, trading and borrowing. The migration to the new fUSD will result in the liquidation of any positions where fUSD debt is equal or greater than the FTM backing it. Liquidation happens when a trader has insufficient funds to keep a leveraged trade open.
fUSD migration & liquidations https://t.co/vj4UAagaoX
— Andre Cronje (@AndreCronjeTech) January 29, 2023
To help users close out their positions, Fantom has built a swap tool that allows users to swap the DAI stablecoin to fUSD and settle their outstanding debt.