Fantom, a blockchain platform, plans to launch version 2 of its fUSD stablecoin to provide a more predictable and cost-effective system for builders, partners, and users, developers announced in a recent post. They did not provide a release date.
Fantom co-founder Andre Cronje updated the details of the Fantom ecological stablecoin fUSD from v1 to v2 yesterday.
According to the developers, the new version will allow stakeholders to allocate fees in either Fantom (FTM) or fUSD and predict future costs based on usage. It will enable programmers to create additional institutional products for users while also providing a more consistent system for grant planning and budgeting.
fUSD and economic abstraction go hand in hand, for Fantom, we want to be able to provide builders, partners, and users a predictable and budget-friendly system.
This means being able to allocate fees in either FTM or fUSD and able to predict future costs based on usage. This allows for consistency in planning and further unlocks additional institutional products. As we move towards fUSD v2 and allow it as a fee system on-chain, we need to migrate from v1. the post reads.
Fantom users can use their FTM to mint fUSD and gain access to the system’s decentralized finance (DeFi) applications, such as lending, trading, and borrowing.
It should be noted that the fUSD generated by relying on the over-collateralization of FTM has fallen by more than 90% since January last year, and following the death spiral of Luna and USDT in May last year, the community has speculated that it may follow in the footsteps of the former.
The transition to the new fUSD will result in liquidating any positions where the fUSD debt is equal to or greater than the FTM backing it. Liquidation occurs when a trader lacks the funds to keep a leveraged trade open.
Fantom has created a swap tool that allows users to convert their DAI stablecoin to fUSD and settle their outstanding debt.