FEI, a new, decentralized Stablecoin , appears to have caught the attention of the cryptosphere. Fei Labs pulled in $1.3 billion during the Fei Protocol Genesis Event, which concluded on Saturday. According to a report from CoinTelegraph, the funds, roughly 639,000 ETH, came from more than 17,000 contributors. Some analysts are calling the event “the biggest launch in DeFi history.”
The money will be 'locked' inside of the Fei Protocol Controlled Value (PCV), which is the term that the protocol uses to describe its 'total value locked' (TVL). Fei’s PCV includes treasuries, insurance funds and other assets that are not redeemable by users.
In exchange for their contributions, the investors who participated in the Genesis Event will receive a pro-rata percentage of FEI coins. As Fei Labs explained, “users that participate at Fei Protocol Genesis can commit ETH as part of the Genesis Group to bootstrap the protocol. By doing so, this entitles participants to a pro-rata percentage of FEI generated from the bonding curve.”
“FEI Uses a New Kind of Stablecoin Mechanism Called Direct Incentives.”
Since the ending of the event on Saturday, the buzz around the FEI token has continued. According to the Fei Labs Twitter feed on Saturday, the FEI/ETH trading pair was the largest trading pool on Uniswap.
Additionally, the Twitter account noted that a pre-swap of $385 million FEI for TRIBE, Fei Labs’ governance token, “probably marks the largest ever AMM swap,” Fei Labs said, referring to automated Market Makers . According to FEI’s website, TRIBE is “the governance token that manages the protocol. TRIBE is governance minimized for peg maintenance, with an emphasis on upgrades and integrations.”
What is unique about the FEI stablecoin? According to the project’s whitepaper, “FEI uses a new kind of stablecoin mechanism called direct incentives.”
“It is more capital efficient, has a fair distribution and is fully decentralized. The protocol uses the value it controls to maintain liquid secondary markets.”
The project lists an impressive list of VC backers, including Andreessen Horowitz, Coinbase, Nascent, Framework, Variant and Buckley Ventures.
