What is Fei Protocol?
Parallel to the development of DeFi platforms is the development of stablecoin platforms. Fei Protocol believes that there are many stablecoins in the market right now. But each type will have different disadvantages.
For example, USDT, USDC are controlled by centralized authority, stablecoins backed by tokens like DAI have scalability problems. Stablecoins like ESD are centralized in the rewards provided by the platform. These factors create an unequal distribution of stablecoin growth.
Because of this, Fei Protocol has launched FEI, a stablecoin with USD equivalent value, decentralized, liquid and scalable, making Defi platforms freely accessible to everyone. due and safest. Up to now, Fei Protocol has minted 420 million FEI Stablecoins, in the near future, if ETH grows strongly and FEI is applied more, FEI's Market Cap can grow further.
Features of Fei Protocol
Currently Defi platforms use TVL (Total Value Locked) as a metric for the success of a project.
However, Fei Protocol believes that, as more capital is locked to the platform, the platform must also offer larger rewards to maintain that capital. When the rewards are no longer distributed, users move their capital elsewhere. This will make the projects no longer potential in the long term.
That is why Fei Protocol has developed a Protocol Controlled Value (PCV) model in which a platform fully owns the assets locked in smart contracts. PCV gives the protocol more flexibility to engage in non-profit activities. These activities may align with more fundamental goals, such as maintaining stability in the anchor price.
The second highlight of Fei Protocol is the multi-party cooperation strategy to increase the application of FEI Protocol in the market. At the present time, Fei has cooperated with Ondo Finance (Structured Finance) and Rari Capital (Yield Aggregator & Manager).