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Fantom (FTM) Price Soars as FUSD Receives Major Update

Sun, 01/29/2023 - 13:01
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Gamza Khanzadaev
Andre Cronje shares major update on Fantom's stablecoin fUSD
Fantom (FTM) Price Soars as FUSD Receives Major Update
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Fantom co-founder and blockchain architect Andre Cronje announced important innovations regarding the ecosystem's native overcollateralized stablecoin fUSD. According to the developer's post, these innovations are needed to make the systems more predictable and budget-friendly for builders, partners and users. Ensuring consistency in planning extends the horizon of opportunity for the ecosystem and is essential for the move toward fUSD v2, Cronje said.

Fantom's (FTM) Andre Cronje Makes Its Most Surprising Announcement in Months

The update from Cronje was greeted by FTM, Fantom's key token, with an increase of 7%. In just the last week, the token's price rose 26.1% to reach $0.48, the highest since May 2022.

Fantom USD (fUSD) liquidation

It has been announced that a liquidation mechanism will be implemented in fUSD v1 with any position where the debt in stablecoin equals or exceeds the collateral in FTM being liquidated. If the collateral is in sFTM, a derivative from staked FTM, the deposit will be unlocked and all rewards will be claimed. If this occurs with a Fantom network validator and the number of its coins in staking falls below the allowed level, it will be excluded from production.

Fantom (FTM) Leaps 20% Weekly as Blockchain Embraces Web3 Innovation

Another innovation was a tool to exchange the decentralized stablecoin DAI for fUSD. In order for users to exit positions, they can now make a swap and then close the remaining debt. It is important to recall that fUSD is currently valued by the market at $0.746 per stablecoin, while DAI trades at $1.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.