Fantom rallied 12% amid the rumors of Andre Cronje returning to the DEFI space, while the entire crypto market turned green and FTM was among the biggest gainers with a 12% spike so let’s read more today in our latest cryptocurrency news.
The price of Fantom rallied 12% amid the rumors of Andre Cronje returning into the DEFI space and hit a daily high of $0.502 in the early hours of Monday. The data from CoinMarketCap shows that FTM is the biggest gainer on the day with a 45% increase over the past week and making it the top-performing crypto among the industry’s top 100 biggest assets. Fantom’s biggest price action could have been driven by speculation that Cronje is a prolific DEFI developer and will return to the project.
fUSD is not UST
• fUSD is an over-collateralized stablecoin (similar to DAI) backed by staked FTM. UST had nothing backing it.
• Users create fUSD by borrowing against their staked FTM.
— Fantom Foundation (@FantomFDN) May 18, 2022
Less than three months ago, Cronje announced that he and Anton Nell as a fellow developer will be leaving the crypto space for good. The move caused a huge selloff in fTM and YFI as the other project that was associated with Cronje, Yearn Finance. Cronje was spotted on GitHub working on the fMint protocol and Fantom’s platform minted FUSD as the blockchain’s native stablecoin which suffers a significant de-pegging in the past few weeks. The fuSD de-pegging could have happened because of the market pressure caused by the TerraUSD collapse but the Fantom Foundation noted that, unlike UST, fuSD is an over-collateralized stablecoin:
“UST had nothing backing it. Users create fUSD by borrowing against their staked FTM. If the value of the FTM goes below the minimum collateral ratio, then the FTM is progressively auctioned off to users who bid using fUSD (to keep peg). UST had no auctioning process.”
Andre Cronje released the Fantom fUSD optimization proposal. AC address has recently added nearly 100 million FTM, which is considered to be returning to Fantom. FUSD suffered a severe de-pegging, and Fantom TVL also dropped sharply by about 69%. https://t.co/dpBe7y9AQ4
— Wu Blockchain (@WuBlockchain) May 22, 2022
fUSD was trading at $0.70 well below the $1 peg. As it was noted by Chinese reporter Colin Wu, Cronje released the fantom optimization proposal while the Fantom address associated with the developer added nearly 100 million fTM that is considered to be returning to Fantom. Over the past two weeks, the given address saw 11 tranches of 9,999,998 FTM each with the latest transaction happening on Monday.
As recently reported, The decentralzied finance application Deus Finance got exploited for the second time with the attacker gaining more than $13.4 million of cryptocurrency during the early Asian Hours with the security researchers at PeckShield saying the exploit occurred on the Fantom network. The Deus protocol allows developers to build financial services like futures trading, lending, and options on the paltform.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]