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Fei Labs Raises $1.3 Billion in Genesis Event

Fei Labs Raises $1.3 Billion in Genesis Event

The firm behind the Fei Protocol stablecoin, Fei Labs, raised 639,000 ETH, approximately $1.3 billion. Fei Labs concluded a successful genesis launch of its Fei stablecoin on Saturday. It raised approximately $1.3 billion in Ethereum from around 17,000 contributors. It was a strong emphasis once again on the market’s increasing desire for digital assets and DeFi space. Fei Labs will employ the funds to bootstrap Fei’s PCV (Protocol Controlled Value), which is a category of total value locked. PCV describes all assets that are not redeemable by users, involving treasuries and insurance funds.

The Fei Protocol Genesis started on March 31 and ended on Saturday. Users who engaged in the genesis event will earn a pro-rata percentage of FEI created from the so-called bonding curve. It is a mathematical formula for determining the relationship between price and token supply. Fei Labs elucidated in its Twitter feed that the FEI-to-ETH trading pair was the most comprehensive pool on Uniswap as of Saturday. 

FEI Protocol Genesis includes Governance Token TRIBE

Furthermore, the FEI Protocol Genesis also included the project’s proposed governance token, TRIBE. It provides holders with the right to vote on future development proposals. Indeed, a pre-swap of FEI for TRIBE worth over $385 million might be the “largest-ever AMM swap,” as per the Fei Labs. Furthermore, on April 3, the FEI – ETH pool on Uniswap was the giant trading pair on the decentralized exchange. Moreover, FEI employs a new set of stablecoin mechanisms termed “direct incentives.” Fei Labs, the project’s team, describes this innovative mechanism as a more capital efficient, fairer, and more decentralized approach to stablecoin management.

Similar to other stablecoin protocols, like DAI, Fei’s method of pricing its stablecoin is algorithmic. The distinction is that its peg, which is named ‘PCV,’ or ‘Protocol Controlled Value,’ controls the price balance by working as an automated central bank. Therefore, trading off and acquiring back tokens required to maintain its $1 price. The Fei Protocol also disincentivizes sellers of its stablecoin below its peg by establishing a growing burn penalty for Fei sales.

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