The FTM has increased by close to 40% during the past week. There has been a lot of talk about a new stablecoin for the project, and there have also been a lot of upgrades, so they are probably the main engines driving this latest shift.
The creator of Yearn Finance and Keep3r, in addition to a large number of other high-profile projects, appears to be rolling up his sleeves and going back to work after having previously said farewell to the game (again) in March of last year and then returning in November of the same year.
It appears that he is in the process (1) of rebuilding the network's native stablecoin, fUSD. He has a long history of being associated with Fantom, a fast layer-1 blockchain, and holds the titles of co-founder and engineer of the Fantom Foundation.
The dollar-pegged currency is in a precarious situation right now, as it trades at $0.86 but reached a low of $0.22 in November.
The token's mechanisms, which allowed users to mint the stablecoin by utilizing an overcollateralized quantity of Fantom's native FTM token, broke down and have primarily been trapped in that state since the community has little faith in fUSD's ability to be revived.
The token's value has declined by around 3% in the previous twenty-four hours. Still, this version will shortly be discontinued, so it doesn't matter.
The procedure to merge this defunct stablecoin (v1) with a brand new and revitalized one (v2) is not overly complicated: Any open positions where the worth of the stablecoin is either equal to or more than the FTM or staked FTM (sFTM) supporting that stablecoin should be liquidated.
Fabtom is Begening a New Innings
And the revival of a native stablecoin is beneficial for various reasons, including the payment of developers and the feeding of a native ecosystem for native DeFi. Despite this, their resilience to volatility continues to be a primary selling point for companies attempting to develop on blockchains.
This year, Fantom has a few tricks up its sleeve, one of which is the resurrection of a stablecoin. But that's not all.
Taking an even further step back, we can see that the price has skyrocketed by an astounding 226% since January 1.
The buildup truly got on around the turn of the year, and this could be linked to a surge of updates and general buzz from Fantom and Cronje about what is going on with the procedure.
For example, Fantom has implemented an intriguing system via which 15% of the gas prices on a network are also delivered to the developers of the individual contract. This is done to reward them for their work. If you create a useful decentralized application (dApp) on Fantom and others use it, you may be eligible for further rewards.
5/13 Gas subsidies, allowing users to onboard without needing FTM (Q2 - Q3 this year). Wallets without FTM can interact with your dapp
— Andre Cronje (@AndreCronjeTech) February 2, 2023
Per Cronje, the blockchain will also provide gas subsidies by the middle of this year. These subsidies would enable users to switch over to Fantom without possessing any FTM, the network's native gas currency.
