Fantom network token grew by 40% amid rumors about the return of Andre Krony
On May 20, Andre Kronya proposed changing the liquidation model SFTM and FUSD, as well as introduce a restriction on the issue of assets on the Fantom network. Against the background of rumors about the return of the host of the Defi-developer, the price of a ftm of a ftm of a ftm increased by almost 40%.
Read on to Learn ABOUT Proposed Changes to SFTM and FUSD.
– How to Repay Outstanding Debt
– LTVS and MINTING LIMITS
We welcome EVERYONE to Leave Comments on Github.
The proposed Kronier Changes relate to the FMINT platform, which allows you to release synthetic assets on the Fantom network and conduct a issue of stabilcoin Fusd. The latter against the backdrop of the collapse of the Terra ecosystem and the collapse of the crypto in May lost parity for the US dollar.
After the incident, the non -profit organization Fantom Foundation said that FUSD uses another binding model compared to UST from Terra.
• if the Value of the ftm gos below the minimum collateral ratio, the ftm is progressively aUCTIONEDSERS WHO BID USING FUS. Ust Had No AUCTIONING PROCESS.
An in-Depth Blog Posteling How Fusd Functions Will Be Released Over The Coming Weeks
– Fantom Foundation (@fantomfdn) May 18, 2022
“Fusd is a stable with excess support (like DAI), supported by FTM tokens in stakeing. UST was not provided with anything. Users create FUSD, occupying assets for security ftm in stayking. If the cost of FTM drops below the minimum support coefficient, assets are gradually sold at auction for users for FUSD. This process is not used in UST, ”the developers wrote.
Despite the model similar to the DAI, at the time of writing FUSD did not return the parity for the US dollar – the price of the asset is $ 0.69, according to Coingeco.
Crinier proposed a number of measures aimed at stabilizing the situation and increasing the stability of the fantom ecosystem in general. In particular, they involve the elimination of positions that do not have excessive support in the amount of 300%.
“Users have time before activating this module to pay off their duty. Given the current low liquidity of FUSD, [Fantom Foundation] will create a Fusd/USDC pool so that users can buy What is crypto FUSD and extinguish their positions to avoid elimination, ”the proposal said.
According to the document, when it comes to a loan at SFTM, the user risks losing remuneration and delegation. Validators, in turn, can be disconnected from the network. Repayment of debt in FUSD will allow them to avoid this.
Crinius also proposed setting emission limits at 150 million SFTM and 50 million FUSD. At the same time, validators will be deprived of the opportunity to produce SFTM. The initiative involves a dynamic interest rate on Fantom markets, which depends on the ratio of credit positions to the general offer of assets.
The developer noted the need to revise the support model. He proposed to introduce coefficients for different assets that affect the maximum loan amount, as well as set limits on the total amount of borrowing.
“Example: the provision coefficient for FTM is 50%if the price of FTM is considered to be $ 1000, the maximum amount that you can release in FUSD will be $ 500,” the author explained.
FTM quotes reacted positively to the potential return of Crinier. At the time of writing, FTM is traded near $ 0.49.
Recall that in March 2022, the senior architect of Fantom Foundation Anton Nell and Andre Kronier decided to leave the cryptocurrency industry.
Read the FORKLOG Bitcoin News in our Telegram-cryptocurrency news, courses and analytics.