Stablecoin Fei (FEI) Might Be Shut Down Soon
Ethereum (ETH) veteran Joey Santoro, founder of Fei Labs, published a proposal to redeem FEI tokens to DAI and to distribute protocol controlled value (PCV) between TRIBE holders.
Fei (FEI) stablecoin project closing; Fei Labs leaves DAO
Mr. Santoro has taken to Twitter to announce that the Fei (FEI) architecture will be shutting down due to "technical, financial and potential future regulatory risks."
He released a proposal to redeem the existing circulating supply of FEI to Dai (DAI), the largest algorithmic stablecoin. Should this proposal pass, remaining PCV reserves will be distributed between the holders of the TRIBE token, which used to act as a balance instrument to keep a 1:1 peg between FEI and USD.
Exhaustive aftermath of a devastating attack on Fuse-based liquidity pools associated with Fei Labs and its partners from Rari Capital is another reason behind the upcoming discontinuing operations.
Decentralized finance (DeFi) researcher Ignas, who goes by @DefiIgnas on Twitter, adds that the vulnerability of Fei's (FEI) protocol controlled value (PCV) itself is the real reason that makes the FEI team close the project:
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