- fUSD v2 will enable for an on-chain payment system and assist unlock Fantom to additional institutional adoption.
- The migration to fUSD v2 will enable for a predictable, budget-friendly on-chain payment system.
- Liquidations of FTM positions will happen, though customers may have ample time to kind such eventualities.
Layer-1 blockchain platform Fantom plans emigrate from fUSD model 1 to fUSD model.
The Fantom Basis stated in a weblog announcement on 29 January that the stablecoin migration is a key objective because the developer staff 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 based mostly on the community utilization.
Based on Fantom Basis’s Andre Cronje, transferring toV2 and permitting for an on-chain payment system won’t solely introduce consistency with regards to 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 capable of entry companies comparable to lending and borrowing. It’s because of this that the Fantom Basis has highlighted potential liquidations as migration from fUSD v1 begins.
The liquidations, the staff 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 will probably be unstaked instantly, with all rewards thereof claimed. The identical will occur to validators with lower than the minimal stake, with this group unable to provide blocks or declare block rewards.
The timeline for v2 going stay hasn’t been offered, however Fantom will assist customers as they appear to shut out positions forward of the launch. This consists of the flexibility to swap DAI for the Fantom stablecoin utilizing a newly created swap software.
Customers will get sufficient time to kind out themselves and profit from advance notifications earlier than any liquidation.