Fei USD
Crypto Overview
Overview
Fei USD was designed as an algorithmic stablecoin project that aimed to maintain a 1:1 peg with the US Dollar through a unique protocol-controlled value (PCV) mechanism. The project was launched in 2021 by the Fei Protocol team.
Current Status
As of 2023, the Fei USD project has been discontinued. Following the collapse of Terra/LUNA and subsequent market instability, the Fei Protocol team decided to shut down the project. The protocol executed a final redemption program allowing FEI holders to redeem their tokens for USDC at a 1:1 ratio.
Purpose and Utility
The original intended purpose was to serve as a decentralized stablecoin that would maintain its peg through algorithmic mechanisms rather than traditional collateralization. The project utilized novel concepts like Protocol Controlled Value and direct incentives, but ultimately failed to maintain sustainable operations.
Business Model Analysis
The core mechanism involved bonding curve sales and protocol-owned liquidity, which aligned with Islamic principles as it involved actual asset exchange and did not rely on interest-bearing mechanisms. However, the project is no longer operational.
Development and Adoption
Development has completely ceased as the project has been terminated. The team executed an orderly shutdown allowing users to redeem their holdings.
Crypto Impact
To assign a comfort level investing in Fei USD 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 Fei USD.
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.