DeFi celebrity Cronje proposes peg fix to Fantom stablecoin

By Raffaele Redi

The proposal aims at diversifying FUSD's reserves

Representation of the Fantom (FTM) logo on a blue crypto coin                                 
fUSD is the Fantom-native stablecoin allowing Fantom stakers and token holders of Fantom projects to borrow stablecoins – Photo: Shutterstock
                                

Decnetralised finance celebrity Andre Cronje has proposed major changes to the stablecoin fUSD on the DeFi platform Fantom in the wake of recent the crypto turmoil triggered by the depegging of algorithmic stablecoin UST.

The proposal is mainly aimed at diversifying the reserves of fUSD, in an effort to peg it on a one-to-one basis to the price of the US dollar.

In particular, the Fantom Foundation is proposing changes regarding new collateral assets, loan-to-value ratios, liquidations, and how to repay outstanding debt.

“The goal is to make fUSD a thriving, Fantom-native stablecoin that allows Fantom stakers and token holders of Fantom projects (eg, BOO, SPIRIT, BEETS, LQDR) to borrow stables in a capital efficient and safe manner,” said Fantom in a blog post yesterday.

Previously, the fUSD coin, Fantom’s native and collateralised stablecoin, could be minted against staked FTM – the Fantom network’s primary token. If the proposal is approved by the community, fUSD could be mintable using the following tokens as collateral: USDC, fUSDT, DAI, sFTMX, wFTM, sFTM, BOO, BEETS, SPIRIT and LQDR. 

The crypto celebrity coming back

The proposal came from Web 3.0 space celebrity Cronje, who according to CoinMarketCap is a prolific coder and founder of Yearn Finance and Keep3rV1, as well as participant in several high-profile DeFi projects including Hegic, Pickle, Cover, PowerPool, Cream V2, Akropolish and Sushiswap.

The news has sparked rumours of a turn-around decision from the DeFi influencer afterr he recently announced his will to leave the Web 3.0 space. Anon Nell, who worked closely with Cronje, wrote in early March 2022: “Andre and I have decided that we are closing the chapter of contributing to the defi/crypto space. There are around 25 apps and services that we are terminating on 3 April 2022.

“Unlike previous ‘building in defi sucks’ rage quits, this is not a knee-jerk reaction to the hate received from releasing a project, but a decision that has been coming for a while now. Thanks to everyone that supported us over the past few years.”

The rumours also appear to have been corroborated by more than FTM100m that has been added to a wallet that is thought to belong to Cronje.

According to CoinMarketCap, Fantom (FTM) was trading at $0.4189, down 15.52% over the past 24 hours, while Fantom USD (fUSD) is changing hands at $0.6903, down by 2.16% in the past 24 hours.

Prices are correct as of 13:10 BST (UTC +1).

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