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Fei Labs raises 639K ETH in genesis event
Fei Labs raises 639K ETH in genesis event
Fei Labs concluded a successful genesis launch of its Fei "non-pegged" stablecoin, raising nearly $1.3 billion in Ethereum from over 17,000 contributors. Stablecoins are typically pegged to a fiat currency, usually the U.S. dollar. However, the values of non-pegged stablecoins float and change over time. They aim to have low short term volatility, while allowing their values to change according to their own demand and the demand for the underlying crypto-assets, over the long term. Ampleforth (launched in June 2019) was one of the first, being followed by Float (February 5, 2021), Rai (February 17), and now Fei.
#Fintech#CryptoAssets#Stablecoins#DFC
·cointelegraph.com·
Fei Labs raises 639K ETH in genesis event
Fei Protocol Patches Vulnerability for Over-Collateralized Stablecoin
Fei Protocol Patches Vulnerability for Over-Collateralized Stablecoin
Less than a week after the Fei protocol's April 4 launch, Fei Labs found a vulnerability in the incentive calculation of the Ethereum-backed algorithmic stablecoin. The team patched the vulnerability on April 6, but it did not prevent the stablecoin from losing 20% off its peg. Fei uses a bonding curve to manage supply and demand based upon its collateralization levels, and uses a system of ‘direct incentives’ to penalize the withdrawal of liquidity during periods of selling pressure. This caught many investors off-guard as they would have to take a hit when withdrawing their ETH collateral or the supposed dollar-pegged tokens it generated.
#Fintech#CryptoAssets#Stablecoins#DFC
·finance.yahoo.com·
Fei Protocol Patches Vulnerability for Over-Collateralized Stablecoin
$1B Fei Stablecoin's Rocky Start Is a Wake-Up Call for DeFi Investors
$1B Fei Stablecoin's Rocky Start Is a Wake-Up Call for DeFi Investors
The $1 billion Fei Protocol stablecoin project has gotten off to a very rocky start. Fei was built to maintain a 1:1 peg with the U.S. dollar but it has not quite hit the mark over this first week of its existence. It appears the team underestimated the demand it would see to participate in the launch. It also seems clear that many of those who jumped into the project didn’t understand Fei’s “direct incentive” method for stabilizing the price. For the first few days FEI danced around a nickel to a dime off the target. Since yesterday it has tanked hard, now almost a quarter off its goal of $1, according to CoinGecko.
#Fintech#CryptoAssets#Stablecoins#DFC
·coindesk.com·
$1B Fei Stablecoin's Rocky Start Is a Wake-Up Call for DeFi Investors
Fei Protocol struggles with a bug as holders are mostly unable to sell the token
Fei Protocol struggles with a bug as holders are mostly unable to sell the token
Despite the apparent complexity, Fei’s mechanism is based on a similar principle to most fiat currencies, where central banks often use their own reserves of gold and foreign currencies to back their currency’s value during periods of strong selling pressure. Direct restrictions on selling are also not new, with countries like Lebanon, Venezuela and Turkey offering recent examples of enacting stringent capital controls in a bid to stabilize their currency’s value.
#Fintech#CryptoAssets#Stablecoins#DFC
·cointelegraph.com·
Fei Protocol struggles with a bug as holders are mostly unable to sell the token
Stablecoin Assessment Framework
Stablecoin Assessment Framework
This Bank of Canada paper proposes a three-step framework to assess the risks of stablecoin arrangements. It is designed to allows authorities to understand the defining characteristics of stablecoin arrangements, to be specific about any concerns they may have, and to be objective in their treatment from issuer to issuer. First, the framework classifies the stablecoin arrangement into three parts, coin structure, related transfer system(s) and related financial service(s), and then categorizes the attributes of each one. Secondly, it identifyies specific risk scenarios that are relevant to the stablecoin arrangement, and thirdly, it quantifies the range of probable loss and possible frequency associated with the identified risk scenarios.
#Fintech#CryptoAssets#Stablecoins#DFC
·bankofcanada.ca·
Stablecoin Assessment Framework
Is Tether a $48 billion scam?
Is Tether a $48 billion scam?
"The question remains as to why Tether management still refuses to provide more transparency. If indeed the company has nothing to hide, putting all questions to rest is astonishingly easy: move the money to a select pool of large well-known banks, and have the statements properly audited by a select pool of large well-known auditing firms. Commit to performing and documenting funds certification for example quarterly and that’s it, you’re done. If Tether wanted to go a step further it could also disclose the investment strategy (or lack thereof) it pursues with the cash under its responsibility. In my mind there can be only one reason why the firm doesn’t follow those very simple steps."
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·tabbforum.com·
Is Tether a $48 billion scam?
Tether (USDT) is launching on Coinbase Pro
Tether (USDT) is launching on Coinbase Pro

"Starting Today Thursday April 22, transfer USDT into your Coinbase Pro account ahead of trading. Support for USDT will generally be available in Coinbase’s supported jurisdictions, with the exception of New York State. Trading will begin on or after 6PM Pacific Time (PT) Monday April 26, if liquidity conditions are met. Please note that Coinbase only supports ERC-20 USDT running on the Ethereum blockchain. "

#Fintech#CryptoAssets#Stablecoins#Tether#Ethereum#DFC
·blog.coinbase.com·
Tether (USDT) is launching on Coinbase Pro
Coinbase lists tether, the world’s dodgiest stablecoin
Coinbase lists tether, the world’s dodgiest stablecoin
"Coinbase... [will be] listing tether (USDT), the world’s dodgiest stablecoin. Tethers... are a stand-in for real dollars, used mainly on offshore crypto exchanges that can’t get proper banking... Coinbase only supports ERC-20 USDT, a reference to the nearly 24 billion tethers that live on the Ethereum blockchain. (Another 26 billion are on Tron, with a smattering on Omni, Algorand, EOS, Liquid, SLP, and Solana.) At the moment, you can only transfer USDT onto Coinbase; you cannot move tethers off the exchange."
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·amycastor.com·
Coinbase lists tether, the world’s dodgiest stablecoin
The post-genesis state of the Fei Protocol
The post-genesis state of the Fei Protocol
"After almost three rocky weeks for the Fei Protocol, the total value held by genesis participants has decreased significantly. What is important is that the distribution has stabilized relative to wallet size, so there are not as many clear outliers as during Fei genesis."
#Fintech#CryptoAssets#Stablecoins#DFC
·cointelegraph.com·
The post-genesis state of the Fei Protocol
Tether's market cap tops $50 billion, supply on Tron surpasses Ethereum
Tether's market cap tops $50 billion, supply on Tron surpasses Ethereum
The market capitalization of Tether (USDT) stablecoin has crossed the $50 billion mark, with the supply on Tron's blockchain ($26 billion) exceeding that on Ethereum's ($24.4 billion), because ransaction fees are lower, and confirmation times faster on Tron. Most of the Tron-based Tether's supply is on the lightly-regulated Binance, Huobi, and OKEx platforms. USDT remains the largest stablecoin by market capitalization, with about 66% market share, followed by USDC (17%) and BUSD (9%).
#Fintech#CryptoAssets#Stablecoins#Tether#Tron#Ethereum#DFC
·theblockcrypto.com·
Tether's market cap tops $50 billion, supply on Tron surpasses Ethereum
Breaking the buck
Breaking the buck
"In the crypto markets there are no MMFs. But they have a close equivalent—private sector stablecoins. For cryptocurrency investors, traders and financiers, digital asset tokens like Tether (USDT) and Circle (USDC) perform the same function as dollar-pegged money market funds in the legacy system."
#Fintech#CryptoAssets#Stablecoins#Tether#USDC#DFC
·newmoneyreview.com·
Breaking the buck
Tether Releases Most Recent Independent Assurance Opinion Confirming Tether’s Reserves Fully Backed | Tether
Tether Releases Most Recent Independent Assurance Opinion Confirming Tether’s Reserves Fully Backed | Tether
"Tether Holdings Limited made available its Consolidated Reserves Report for March 31, 2021 and an accompanying assurance opinion by Moore Cayman attesting that the information is accurate. It is our plan to release Consolidated Reserves Reports and related assurance opinions on a quarterly basis."
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·tether.to·
Tether Releases Most Recent Independent Assurance Opinion Confirming Tether’s Reserves Fully Backed | Tether
LUGH Introduces EUR-L Stablecoin, Backed By Deposits Held By Société Générale
LUGH Introduces EUR-L Stablecoin, Backed By Deposits Held By Société Générale
In March, French startup Lugh launched a new Euro stablecoin (EUR-L) backed by deposits held in a Societe Generale bank account and currently available on the French crypto exchange Coinhouse. EUR-L is issued on the Tezos blockchain, and Lugh reports that users will be able to access monthly reports regarding their reserves, validated by a global accounting firm.
#Fintech#CryptoAssets#Stablecoins#DFC
·coinmarketcap.com·
LUGH Introduces EUR-L Stablecoin, Backed By Deposits Held By Société Générale
FEI Stablecoin Hits Target for First Time, 1 Month After Launch
FEI Stablecoin Hits Target for First Time, 1 Month After Launch
"It took a month and a day, but the FEI stablecoin has finally hit its target price of $1. Since its debut on April 3, FEI has mostly traded below its goal of parity with the U.S. dollar. From April 7 to April 20, it stayed below $0.80, more than 20% off its peg. Things started to turn around on April 20, when the price began to rise toward the goal. Tuesday morning, FEI finally hit $1. It remains to be seen if FEI can hold this price."
#Fintech#CryptoAssets#Stablecoins#DFC
·coindesk.com·
FEI Stablecoin Hits Target for First Time, 1 Month After Launch
Federal Reserve proposes guidelines for what firms qualify for Fed accounts, payments services
Federal Reserve proposes guidelines for what firms qualify for Fed accounts, payments services
The U.S. Federal Reserve proposed guidelines for what sorts of financial institutions can have access to accounts at the central bank and its related payment services. "With technology driving rapid change in the payments landscape, the proposed Account Access Guidelines would ensure requests for access to the Federal Reserve payments system from novel institutions are evaluated in a consistent and transparent manner that promotes a safe, efficient, inclusive, and innovative payment system, consumer protection, and the safety and soundness of the banking system."
#Fintech#CryptoAssets#Stablecoins#DigitalBanking#Regulation#DFC
·federalreserve.gov·
Federal Reserve proposes guidelines for what firms qualify for Fed accounts, payments services
Tether as a Central Bank. Central banks routinely issue money
Tether as a Central Bank. Central banks routinely issue money
"What if Tether announced tomorrow that they don’t want to enforce convertibility anymore, and oh by the way, “we don’t really have a 1-to-1 reserve pool”? The company could keep issuing USDT as it sees fit, feeding the marketplace with enough liquidity to “keep it going”. If indeed all USDT holders consider they have good reasons to hold Tether, because it helps them trade, there’s is really no reason for them to dispose of it. A “Nixon shock” whereby Tether would announce it will not enforce the 1-to-1 parity anymore could be followed by a new rule of floating exchange rate. Would there be a fundamental problem with that?"
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·medium.com·
Tether as a Central Bank. Central banks routinely issue money
Diem Announces Partnership with Silvergate and Strategic Shift to the United States
Diem Announces Partnership with Silvergate and Strategic Shift to the United States
Facebook's Diem project is shifting its main operations from Switzerland to the United States, and withdrawing its application for a license from Switzerland's FINMA, as it is not required under the new model. Diem will partner with Caliafornia state-chartered Sivergate Bank who will become the exclusive issuer of Diem's USD stablecoins and will manage the USD reserve. And Diem Networks US will register as a money service business (MSB) with the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN).
#Fintech#CryptoAssets#Stablecoins#Facebook#DFC
·diem.com·
Diem Announces Partnership with Silvergate and Strategic Shift to the United States
Tether reserve disclosure leaves unanswered questions
Tether reserve disclosure leaves unanswered questions
According to Paul Amery (New Money Review): Permissible investment rules for US money transmitters vary state by state but typically allow them hold corporate bonds, currency, foreign government debt, asset-backed and mortgage-backed securities. US dollar money market funds, which closely resemble stablecoins in their objectives, operate according to more detailed and stringent reserve and disclosure obligations set by the Securities and Exchange Commission (SEC). Permissible investments are limited to cash, direct obligations of the US government, certain securities issued by US government instrumentalities with a remaining maturity date of 60 days or less, and securities that mature or are subject to a demand feature exercisable and payable within five business days.
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·newmoneyreview.com·
Tether reserve disclosure leaves unanswered questions
Terra’s 25-Fold Jump Shows Bet on Algorithmic Stablecoins
Terra’s 25-Fold Jump Shows Bet on Algorithmic Stablecoins
Terra is a three-year-old project from the South Korean developer Terraform Labs, built to support a basket of decentralized stablecoins. Demand has surged in cryptocurrency markets for Terra’s LUNA token, which works as part of an automatic balancing system that helps to keep prices for the stablecoins, well, stable.
#Fintech#CryptoAssets#Stablecoins#Terra#DFC
·coindesk.com·
Terra’s 25-Fold Jump Shows Bet on Algorithmic Stablecoins
Tether’s smoke and mirrors
Tether’s smoke and mirrors
"Smoke and mirrors may maintain the peg for a while, but people won’t be fooled forever. If Tether is serious about delivering “unrivalled transparency”, it should publish the composition of its assets in sufficient detail to eliminate all doubts about their safety and liquidity. And if it wants the par peg to hold under all circumstances, it must significantly increase its capital. If it won’t do either of these, then eventually the mirror will crack, the peg will break and Tether will be doomed. "
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·coppolacomment.com·
Tether’s smoke and mirrors
Tether is Setting a New Standard for Transparency?
Tether is Setting a New Standard for Transparency?
According to Tether’s General Counsel, Stuart Hoegner, the commercial paper held as USDT reserves are mostly investment grade, but with no independent verification of his statement. However, Tether’s terms of service says that if Tether is unable to raise the cash to meet USDT redemption requests, it can either delay redemption or redeem USDT by in-kind redemptions of securities and other assets held as reserves. So the liquidity or quality of reserve assets doesn't matter since Tether will never have any significant need for cash.
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·stuarthoegner.medium.com·
Tether is Setting a New Standard for Transparency?
USDT's Endgame and Life After Tether
USDT's Endgame and Life After Tether
"USDTs look like real money to users because exchanges and arbitrageurs maintain a peg to the dollar – the price of every cryptocurrency is the same for USD as for USDT. However, USDTs come with a very important caveat: their apparent value relies exclusively on trust and hope that this peg will hold. There are no guarantees that USDT will be worth anything tomorrow – which is a pretty sweet deal for exchanges who keep the balances of their clients in USDT, instead of USD. If Tether collapses, it’s the users who will get shafted, not the exchanges."
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·tr0lly.com·
USDT's Endgame and Life After Tether