[Company Watch] Fei Protocol, Quick Review Before its Launch

  1. Fei is a stablecoin, pegged to $1
  2. Fei is collateralised by assets, currently ETH, from 100% of the ETH pooled during Genesis
  3. Anyone can mint Fei at the price of $1.01 on the bonding curve (contract)
  4. When Fei is below $1, there are two mechanisms to restore the value to $1
  5. When the price is below $0.98, sellers of Fei will be charged 4% and buyers will be rewarded 2%. Difference in fee is minted in Fei and added to the reserve.
  6. When the price significantly moves below $1, the protocol will withdraw most ETH-FEI liquidity from Uniswap, and sell some of the remaining ETH to FEI to restore the price of FEI to $1, and put the ETH-FEI liquidity back. Excess FEI not added back to Uniswap is burnt.

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