- 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 eventualities.
Layer-1 blockchain platform Fantom plans emigrate from fUSD model 1 to fUSD model.
The Fantom Basis mentioned in a blog announcement on 29 January that the stablecoin migration is a key purpose 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 foretell future prices primarily based on the community utilization.
In line with Fantom Basis’s Andre Cronje, transferring toV2 and permitting for an on-chain payment system won’t solely introduce consistency on the subject of planning, but additionally 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 reminiscent of lending and borrowing. It’s because of this 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 better than the FTM or staked FTM (sFTM) backing it. In case of sFTM, Fantom says the stake might be unstaked instantly, with all rewards thereof claimed.
The identical reason for motion might 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 dwell hasn’t been offered, 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.
Customers will get sufficient time to type out themselves and profit from advance notifications earlier than any liquidation.