Whale accounts arbitraging on automated market makers are one of the banes of the DeFi industry for the average user. It drives up transaction prices and increases peg volatility for what should be ‘stable’ stablecoins .
A new stablecoin from Fei Protocol aims to tackle this hindrance by introducing bonding curves and direct incentives for peg maintenance. The announcement labels FEI as “a decentralized, fair, liquid, and scalable stablecoin that exhibits a high fidelity peg,”
Fei is a next generation stablecoin protocol. We are stoked to share this with the DeFi community!