INFORMATION
StakeSteak is a suite of financial products centered around fUSD. 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.
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