Fantom posts phantom gainsRumors are swirling at Fantom HQ, sending the price up against the wider crypto market.
- FTM saw gains of 10% last week, despite the crypto continuing to slowly Bart Simpson into a bear market. The spike in price comes as Fantom’s stablecoin project, fUSD, gets underway, and whispers of Andre Cronje returning to the platform do the rounds.
- Andre who? Word on the crypto street suggests Cronje is a prolific DeFi developer who previously left Fantom – which saw the token sink on the news. However, in a plot twist, Cronje now seems to be working on a fMint protocol that aims to repeg fUSD.
- Fantom were quick to distance themselves from Terra, claiming fUSD is nothing like UST and will find its parity again soon. While UST had nothing backing it, Fantom says its stablecoin, like DAI, is backed with staked FTM.
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Deus Finance gets the depegging treatmentNext up in Depeg Roulette is stablecoin DEI, which runs on Fantom’s DeFi network Deus Finance and is falling waaay off its dollar peg.
- DEI fell as low as $0.52 on some exchanges on Monday, and is still trading for only $0.61 as of Tuesday morning, coming at a time when algorithmic stablecoins face a barrage of… well, stability concerns. Deus Finance reckons the moment of weakness was bc of people swapping their DEI tokens for USDC without enough liquidity to fill the exodus.
- The stablecoin is a part of DeFi protocol DEUS Finance, and is used primarily as collateral. Like UST, DEI works on an algorithmic mechanism that trades DEI with $1 worth of DEUS tokens to keep its dollar peg through artificially controlling supply and demand.
- Calm your horses, this is unlikely to impact the wider market. DEI only has a market capitalization of $60m and Deus Finance claim they have found a repegging solution through a treasury bond program… whatever that’s supposed to mean. As of writing, however, it’s still not met its parity – so get those bonds out, DEI.
DIP-7: $DEUS Treasury Bonds
We are proposing a treasury bond program aimed at securing peg stability 💪
These treasury bonds allow users to deposit collateral and earn a fixed interest based on the maturity date.
Read more about it here: https://lafayettetabor.medium.com/dip-7-treasury-bonds-4cc886148b9e
Who you gonna call?Somebody get Ghostbusters on the line because a Fantom-based protocol has just been spooked by a hack.
🔍 Key points:
- Fantom-based Fantasm Finance was exploited for $2.6m worth of FTM tokens in the early hours of Thursday morning. The protocol was launched earlier this month as a De-Fi project aimed at making synthetic tokens for the Fantom ecosystem that are pegged to FTM.
- Hackers were able to get into Fantasm’s FTM reserves, and the tokens were then swapped for around $2.6m worth of Ether using privacy protocol Tornado Cash, which lets people swap anonymously. Fantasm says it’s coming up with a compensation plan, so we’ll see if investors ghost them or not.
- The FTM token tanked over 10% on Thursday, now down over 30% for March so far in its worst month since May last year. Tbf, the network got a bad knock last week when prolific developer Andre Cronje left De-Fi – he was a lead developer for Fantom (among others), and all his projects have been suffering.
Fantom gets ghostedThe crypto community mourns the exit of two big dog developers, and their projects suffer the consequences.
🔍 Key points:
- Prolific developers Andre Cronje and Aton Nell have called it quits on their time in cryptoland on Sunday, according to a Twitter post that gave no explanations for the exit.
- Cronje has been described as the “godfather of De-Fi” and is best-known for his work on Fantom and Yearn Finance – the pair will be “terminating” over 25 apps and services next month, though it’s worth noting that those projects won’t actually stop operating.
- Their associated projects did not take the news well though. Fantom tumbled over 16% on Sunday to hit its lowest price since December 21, and Yearn Finance lost nearly 10% to its lowest close since November 2020.