- fUSD v2 will permit for an on-chain payment system and assist unlock Fantom to additional institutional adoption.
- The migration to fUSD v2 will permit for a predictable, budget-friendly on-chain payment system.
- Liquidations of FTM positions will happen, though customers can have ample time to type such situations.
Layer-1 blockchain platform Fantom plans to migrate from fUSD model 1 to fUSD model.
The Fantom Foundation stated in a blog announcement on 29 January that the stablecoin migration is a key aim because the developer crew 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 predict future prices primarily based on the community utilization.
According to Fantom Foundation’s Andre Cronje, shifting toV2 and permitting for an on-chain payment system is not going to solely introduce consistency when it comes to planning, but in addition assist unlock extra institutional merchandise.
FTM liquidations forward of v2 launch
Fantom helps using FTM and fUSD in decentralised finance (DeFi), with customers in a position to entry companies similar to lending and borrowing. It’s because of this that the Fantom Foundation 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 situations 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 similar reason for motion will probably be taken towards validators with lower than the minimal stake, with this group unable to produce blocks or declare block rewards.
The timeline for v2 going reside hasn’t been supplied, however Fantom will assist customers as they appear to shut out positions forward of the launch. This contains the flexibility to swap DAI for the Fantom stablecoin utilizing a newly created swap software.
Users will get sufficient time to type out themselves and profit from advance notifications earlier than any liquidation.
