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What is the origin of Fei that makes Ethereum agitated?



Recently, a stablecoin called Fei has pushed the popularity of Ethereum to a new height again.

Since the birth of Ampl, algorithmic stablecoins have become a very promising track in the market. But since Ampl's design model is very simple. If the currency price is higher than one US dollar, the project will be inflated; if the currency price is lower than one billion US dollars, the project will be deflationary. As a result, the price of Ampl skyrocketed and plummeted. This situation makes everyone feel that this stable currency, which focuses on stability, is actually not stable.

As a result, the market has launched more and more new versions of algorithmic stablecoins based on Ampl. The emergence of a series of algorithmic stablecoins such as esd, basis, and frax has begun to gradually introduce the algorithmic stablecoin market into the public eye.

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According to previous news, the unknown address purchased a total of US$3,400 of SHIB in nine installments in August last year, and it is now worth US$1.55 billion. Since August 2020, this address has purchased a total of 44 SHIBs, and the 70,200,003,107,594 SHIBs held are now worth $5.63 billion. [2021/11/3 6:28:39]

So what happened to Fei this time?

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Fei is a decentralized, fair distribution, high liquidity, and scalable stablecoin pegged to $1 developed based on Ethereum. This introduction is a bit of a mouthful, but it is actually a stable currency linked to the US dollar.

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During the founding mining period, investors can exchange Fei after depositing Ethereum in the Fei protocol, and obtain the governance token Tribe through airdrops.

In order to make the price of Fei close to 1U, the project added two constraints in the design.

Analysis | XRP's big change still needs to wait for this time node to approach: According to huobi market, XRP is now at $0.4228, an intraday drop of 1.44%.

In view of the current trend, analyst Potter said that the overall trend structure of XRP/BTC daily trend has been in a large descending triangle range since 19 years and has been oscillating downward all the way. It can be seen from the long-term historical trend that the key support for the downward trend is around 4100sats , every time the currency price dips and touches the support line, it can quickly pull up and walk out of a strong rebound. At present, there is still almost a month before the date of the end of the triangle change. We found that the good news in the past few days Driven by XRP's heavy volume upward attack, but the rebound volume has not continued to increase, the sustainability of the rise has been greatly limited, and MACD is also in a dead cross situation again, indicating that the short-term still continues the weak and volatile trend, and it is unlikely to go out of the independent market at present. The currency price is generally at a relatively low level for a long time in history, and there is not much room to continue to drop sharply. In the future, the currency price will fall back to the lower key trend line and gradually build positions, waiting for the arrival of the change node. [2019/6/20]

Condition 1: Flesh cutter punishment

This situation will start when the price of 1Fe is less than 1U.

When the price of 1 Fei is lower than 1U, the system will add an additional loss to the seller of Fei. Through human loss aversion, investors' desire to sell Fei is reduced. For example: when 1 Fei=0.98U, if you sell 1 Fei in your hand, then you may only get 0.94U.

And the farther 1Fei deviates from 1U, the greater the loss for investors to sell. And this part of the loss will be destroyed by the system in order to keep 1Fei=1U.

So what happens when 1Fei>1U?

At this time, the system will start the second constraint.

Condition 2: Arbitrageur Reward

In Fei's protocol, there is a conversion curve called Bonding Curve. This curve will adjust the conversion price of Fei according to the supply and demand of the market.

When 1Fei>1U. Investors will exchange Fei at a price of 1.01U. Then, you can take these Fei with a cost of 1.01U and sell them in the secondary market for arbitrage. The reward rule for arbitrageurs takes advantage of the profit-seeking psychology of human nature to ensure that the price of 1Fei tends towards 1U.

Finally, let’s talk about Fei’s governance token, Tribe.

Similar to other decentralized Defi projects, Tribe's main function is for ecological governance. But this governance token is often the most imaginative part of a project.

We know that governance tokens like UNI, SUSHI, YFI, etc. have all brought huge returns to investors. Therefore, for a high-quality project like Fei, Tribe will have a lot of room for imagination. This is why Fei has attracted the attention of many investors since its launch. Because everyone wants to do their best to get more Tribe airdrops in the early stage of the project.

The initial total supply of Tribe is 1 billion. Among them, 40% of the tokens will be given to DAO, 20% will be released through IDO, the founding team will own 13% of the tokens, Staking and Genesis will each have 10%, and the remaining 7% will be distributed to Investors and Grants.

The reason why Fei has received wide attention from the market is not only the above reasons, but also because it has a strong investment team.

Previously, Fei Labs had received $19 million in investment from Andreessen Horowitz (a16z), Framework Ventures, Coinbase Ventures and many other institutions. From this lineup and the amount of money, we can see everyone's expectations for Fei. So, if you are optimistic about algorithmic stablecoins, then Fei will be a project that cannot be missed.


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