Fei USD
Crypto Overview
Overview
Fei USD (FEI) was designed as a decentralized algorithmic stablecoin protocol that aimed to maintain a 1:1 peg with the US Dollar through a system of incentives and protocol controlled value (PCV). The project was launched in 2021 by the Fei Protocol team.
Intended Utility
The intended purpose of FEI was to serve as a stable medium of exchange and unit of account in the DeFi ecosystem, offering an alternative to centralized stablecoins. The protocol used novel mechanisms including direct incentives and protocol-controlled value to maintain its peg.
Current Status
As of May 2022, Fei Protocol merged with Rari Capital and subsequently suffered from the Fuse hack. In December 2022, the project officially shut down, with the team announcing the end of the protocol. The FEI token is no longer maintaining its peg and has effectively ceased operations.
Token Distribution and Governance
The project utilized a TRIBE governance token for protocol decisions. During its operation, the protocol maintained significant treasury reserves and implemented various mechanisms for stability. However, following the shutdown, the remaining assets were distributed to token holders as part of the wind-down process.
Technical Implementation
The protocol implemented direct incentives through a system of bonds and protocol controlled value. While innovative, these mechanisms ultimately proved insufficient to maintain long-term stability, leading to the project's closure.
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.