VC Backed Billion-Dollar Stablecoin Project Fei Protocol Falls Below the USD Peg

The new decentralized finance (defi) stablecoin project called Fei had some issues this week after the 1:1 USD pegged token dropped well below its targeted $1 value.

Fei Protocol struggles with a bug as holders are mostly unable to sell the token

A vulnerability patch left the protocol with only partial functionality, but the price is still holding. Wednesday’s crypto market correction put a heavy burden on the FEI project, the latest attempt at creating an algorithmic stablecoin that would remain stable in the face of market turbulence.

Fei Protocol genesis locks up $1 billion in ETH, but LPs could face losses

Despite attracting more than $1 billion, Fei protocol’s genesis event hasn’t been entirely smooth sailing — with LPs facing losses if they withdraw soon.