Fei Protocol supports the creation of decentralized, scalable, and fair staboin based on Ethereum. Its name is inspired by the famous Stone Currency on Yap Island (Fei), and it wants Fei to show the same stability, simplicity, and universality as Stone currency. FEI staboins have an uncapped supply that tracks demand and enter circulation through sales on a combined curve that approximates and fixes the $1 anchor price. When new FEI requirements appear, users can purchase them on the union curve. The price function will begin to reward early adopters who buy FEI at a lower price. The Fei protocol will support the creation of federated curves with any ERC20 token, but only with a single curve priced in ETH when online. The task is to create a fully decentralized stablecoin. This is the position that the development team wants the governance community to take in the future.
Fei protocol runs on two cryptoassets: Fei stablecoins and the TRIBE governance token. There were some problems with the hooks in the original mechanism, but through a series of governance upgrades, the protocol was restored within a few months of release. Fei V2 intends a major upgrade to the system, which will be available by the end of 2021. It has 1:1 redeemability between FEI and protocol reserve, TRIBE repurchase and support, and value management controlled by algorithmic protocols.
The project was established in December 2020 and immediately generated great interest in the crypto community. It raised $19 million in venture capital in early March 2021. Investors include Andreessen Horowitz (A16Z), Framework Ventures, Coinbase Ventures, AngelList founder Naval Ravikant, ParaFi Capital and The Variant, and so on.
Santoro is the founder of Fei Protocol and CEO of Fei Labs. His background is in software engineering and encryption. Prior to that, he worked as a software engineer at Okta Inc., helping companies manage digital identities. He graduated in computer science from Duke University in 2019 and served as a research assistant and co-president of a local blockchain lab.