Fantom to launch the much awaited fUSD V2, details inside
- Fantom plans to launch version 2 of its fUSD Stablecoin this year.
- fUSD v2 aims to make the system more predictable and budget friendly.
Andre Cronje, the Director of the Fantom Foundation announced Fantom’s plans to migrate its fUSD stablecoin to a more predictable and budget-friendly system with the launch of fUSD version 2.
V2 will allow Fantom’s builders, users, and developers to allocate fees in either fantom (FTM) or fUSD and predict future costs based on usage.
fUSD liquidation before migration to v2
In order to implement the updated fUSD, version 1 of fUSD will go through liquidations. Any positions where the fUSD debt is equal to or greater than the FTM or sFTM backing will be liquidated.
If the backing is in sFTM, the stake will be immediately unstaked, and all rewards claimed. In the case of a validator, if the minimum stake is not met, the validator will not be able to produce blocks or receive rewards.
Fantom’s developers are confident that v2 will help create a more consistent system for planning and budgeting, and allow for the creation of additional institutional products. While the timeline of the launch hasn’t been disclosed, the added predictability and affordability will certainly help the platform.
To help users close out their positions, Fantom has created a swap tool that allows users to exchange DAI for fUSD and settle their outstanding debt.
Fantom has assured users that ample time will be given to them in order to liquidate their positions. Furthermore, advance notification will be provided prior to any liquidation.
According to data from CoinMarketCap, FTM, at press time, was trading at $0.46. The decline of 3% over the past 24 hours indicated that the immediate response to news of fUSD v2 was not positive. However, with an increase of 130% YTD, the token’s performance since the beginning of 2023 has been impressive.
Data from DeFiLlama showed that Fantom’s total value locked (TVL), at the time of writing, stood at $520.4 million, up more than 23% since the beginning of the year.