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Fantom (FTM) updated weekly highs on Saturday, soaring 15% after rumors of André Cronje’s return. The founder of the DeFi direction, whose Yearn Finance platform has become a template for profitable farming, is seen writing code for the FMint stablecoin platform.
Cronje left the cryptocurrency market amid frustration with the community, which he said had forgotten the main goals of decentralization and focused on enrichment.
The appearance of the founder of DeFi is associated with the need to save FUSD and DEI. The algorithmic stablecoins of the Fantom ecosystem suffered from the collapse of the UST. This stable token has lost its peg to the dollar, devaluing the billions of investors’ funds invested in it without the possibility of return.
The UST de-binding destroyed the Terra ecosystem behind it, whose utility cryptocurrency LUNA lost 99%. Investors began to massively withdraw from all stable coins, which led to a decrease in the RATE of FUSD to 0.51, the dei fall rate was 0.55.
In algorithmic stablecoins, loans and investments of DeFi protocols on Fantom are nominated, dereferencing brings losses to their users and caused an outflow of investments. Since March’s $15 billion, TVL investments have sunk to $1.93 billion.
Cronje will have to rewrite the algorithm to return the peg to the dollar by changing the FUSD collateral mechanism. Perhaps the genius of the founder of DeFi will help to cope with the crisis of confidence in this industry.
If you do not take into account the problems of UST, the idea of algorithmic regulation of the rate is the only protection against the centralization of stable tokens. Cryptocurrencies backed by real fiat cannot avoid any requirements put forward by financial regulators.
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