Fantom (FTM) plans to introduce fUSD V2

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  • fUSD v2 will allow for an on-chain fee system and help further institutional adoption of Phantom.
  • Migration to FUSD v2 will allow for a predictable, budget-friendly on-chain fee system.
  • Liquidation of FTM positions will occur, although users will have enough time to sort out such scenarios.

Layer-1 Blockchain Platform Phantom There is a plan to migrate from fUSD version 1 to fUSD version.

Phantom Foundation said in a blog announcement on Jan. 29 that stablecoin migration is a major goal as the developer team seeks to make the scalable next-gen blockchain more predictable and cost-effective for builders, partners, and users.

fUSD V2 will see Fantom users allocate fees to native FTM or fUSD, making it easier to estimate future fees based on network usage.

According to Andre Cronje of the Phantom Foundation, moving to V2 and allowing an on-chain fee system not only helps when it comes to planning, but also unlocks more institutional offerings.

FTM liquidation before V2 launch

Fantom supports the use of FTM and fUSD in decentralized finance (DeFi), enabling users to access services such as lending and borrowing. That’s why the Phantom Foundation has highlighted the potential liquefaction As the migration from fUSD v1 begins.

Cronje explained that liquidation will occur in scenarios where the FUSD debt is either equal to or greater than the FTM or backed by the FTM (SFTM). In the case of SFTM, Phantom says that the stake will be removed immediately and all rewards will be claimed.

The only cause of action that will be taken against validators with less than the minimum stake is because the group is unable to produce blocks or claim block rewards.

A timeline for when V2 will go live has not been given, but will help phantom users as they seek to close positions ahead of launch. This includes the ability to swap DAI for a phantom stablecoin using the newly created swap tool.

Users will get enough time to settle themselves and benefit from advance notices before any liquidation.

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