- fUSD v2 will enable for an on-chain price system and assist unlock Fantom to additional institutional adoption.
- The migration to fUSD v2 will enable for a predictable, budget-friendly on-chain price system.
- Liquidations of FTM positions will happen, though customers may have ample time to kind such eventualities.
Layer-1 blockchain platform Fantom plans emigrate from fUSD model 1 to fUSD model.
The Fantom Basis stated in a blog announcement on 29 January that the stablecoin migration is a key purpose because the developer staff seeks to make the scalable next-gen blockchain extra predictable and cost-effective for builders, companions and customers.
fUSD V2 will see Fantom customers allocate charges within the native FTM or fUSD, with this making it simpler to foretell future prices primarily based on the community utilization.
In response to Fantom Basis’s Andre Cronje, transferring toV2 and permitting for an on-chain price system won’t solely introduce consistency relating to planning, but in addition assist unlock extra institutional merchandise.
FTM liquidations forward of v2 launch
Fantom helps the usage of FTM and fUSD in decentralised finance (DeFi), with customers capable of entry companies reminiscent of lending and borrowing. It’s for that reason that the Fantom Basis has highlighted potential liquidations as migration from fUSD v1 begins.
fUSD migration & liquidations https://t.co/vj4UAagaoX
— Andre Cronje (@AndreCronjeTech) January 29, 2023
The liquidations, Cronje identified, will happen in eventualities the place the fUSD debt is both equal to or higher than the FTM or staked FTM (sFTM) backing it. In case of sFTM, Fantom says the stake will probably be unstaked instantly, with all rewards thereof claimed.
The identical explanation for motion will probably be taken towards validators with lower than the minimal stake, with this group unable to provide blocks or declare block rewards.
The timeline for v2 going reside hasn’t been supplied, however Fantom will assist customers as they give the impression of being to shut out positions forward of the launch. This contains the power to swap DAI for the Fantom stablecoin utilizing a newly created swap software.
Customers will get sufficient time to kind out themselves and profit from advance notifications earlier than any liquidation.