Fathom Dollar
Crypto Overview
Overview
Fathom Dollar (FXD) is a decentralized, crypto-collateralized stablecoin operating on the NEAR Protocol blockchain. It aims to maintain a stable value of $1 USD through a system of smart contracts and over-collateralization.
Purpose and Utility
The primary purpose of FXD is to serve as a stable medium of exchange and unit of account within the NEAR ecosystem. Users can mint FXD by depositing NEAR tokens as collateral at a minimum collateralization ratio of 150%. The protocol uses algorithms to maintain the dollar peg through collateral management and liquidation mechanisms.
Business Model Analysis
The business model revolves around providing a stable cryptocurrency that facilitates transactions and trading on the NEAR blockchain. The protocol generates revenue through liquidation fees and stability fees, which are used to maintain the system's stability.
Real-World Adoption
FXD has achieved notable adoption within the NEAR ecosystem, being used in various DeFi protocols and as a trading pair on decentralized exchanges. The total supply and trading volume indicate active usage, though specific metrics are subject to change.
Platform Development
The project maintains active development with regular updates to the protocol. The smart contracts have undergone security audits, and the team continues to implement improvements to the stability mechanisms.
Token Distribution
FXD tokens are created through user collateralization of NEAR tokens, with no pre-mine or founder allocation. This model ensures fair distribution based on market demand and usage.
Crypto Impact
To assign a comfort level investing in Fathom Dollar from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Fathom Dollar.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.