What Is Fei Protocol
Fei Protocol is a blockchain project to create a decentralized, liquid, scalable stablecoin.
Background
Joey Santoro and Jai Bhavnani founded the Fei Protocol in 2021.
How It Works
The project was conceived to develop a stablecoin, FEI, that maintains a high-fidelity peg. This stablecoin operates algorithmically and relies on the Protocol Controlled Value (PCV).
FEI is pegged to the US dollar on a 1:1 basis. It is minted by users who bond assets to the protocol’s treasury. The protocol operates on a buy-only bonding curve, meaning users must sell their minted FEI tokens elsewhere. To reinforce the stablecoin peg, the protocol also offers a Price Stability Module (PSM), which allows users to exchange DAI for FEI (and vice versa) at a 1:1 ratio.
Fei Protocol is no longer under active development.
Key Takeaways
- Fei Protocol is a blockchain project that creates a decentralized, liquid, scalable stablecoin.
- The project was founded by Joey Santoro and Jai Bhavnani in 2021.
- The stablecoin created by the project, known as FEI, maintains a high-fidelity peg and operates algorithmically.
- FEI is pegged to the US dollar on a 1:1 basis and is minted by users who bond assets to the protocol’s treasury.
- The protocol offers a Price Stability Module that allows users to exchange DAI for FEI (and vice versa) at a 1:1 ratio.
