StakeSteak is a suite of financial products centered around
fUSD is Fantom’s native stablecoin that can be created by the
fMint function from Fantom’s official wallet. Any person can lock up their FTM (Fantom’s native token) and mint
fUSD at a 500% collateralization ratio. A $1000 FTM position is able to mint $200 worth of
fUSD. Additionally, the collateral that is locked earns around 8% APR.
fMint acts as a mechanism for people to borrow
fUSD using FTM as their collateral. These borrowed positions are riskless and have gamed to the point where the
fUSD is no longer pegged to $1.
fUSD needs liquidations and infrastructure to remain pegged.
StakeSteak hopes to solve that first problem by creating the infrastructure needed with Fantom Foundation to peg
fUSD. The lack of infrastructure for
fUSD is a negative feedback loop that continues to suppress the price away from peg. The uncertainty surrounding
fUSD price stability prevents people from building with it. The future looks good for
fUSD based on StakeSteak and the Fantom Foundation's current actions.