Fantom Blockchain to Release Version 2 of fUSD Stablecoin
The migration from version 1 will result in liquidations of any positions where fUSD debt is equal to or greater than the FTM backing it.
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.
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.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.