Fantom News and Updates for Tuesday, May 24, 2022

Fantom Foundation posted several notable updates on its Twitter account. It wrote that fUSD will have a global cap of 50m fUSD, that fUSD/USD markets will be created and incentivized, and it will have a dynamic interest rate based on borrow versus supply.

Terra Luna failed because it fixed its interest rate to 20%. It also lets users withdraw any amount at any time. This combination proved lethal when a user sold $1 billion worth.

Fantom said that fUSD can be staked in the protocol to earn fees. It is estimated that at a 90% utilization rate, it will result in an 11.30% APY.

sFTM will also have a global market capitalization of 150 million sFTM. It is transferable. In addition, the sFTM/wFTM market will be created and incentivized. Needless to say, it will have a dynamic interest rate that is based on borrowing and supply.

The Fantom ecosystem will benefit from those updates. According to Coinape, DeFi developer Andre Cronje was spotted writing code on the chain. This news sent FTM up by 13% on May 20, 2022. Cronje unexpectedly left Fantom in early March. Lead developer Anton Nell did, too. The uncertainties created a severe sell-off in FTM.

Crypto remains highly volatile. With FTM, it depends on key players like Cronje and Nell.