On April 3, the Genesis event of the FEI Protocol took place due to which the network raised over 639,000 Ether - around $1.3 B for its algorithmic stablecoin Fei. More specifically, collected capital will be managed as collateral for minting stablecoins.
Fei announced that the number of addresses having been engaged in the event surpassed 17.000 and the provided liquidity amount to Uniswap was around $2.6 billion.
The stablecoin Fei uses as a peg Protocol Controlled Value "PCV". This system has the role of central banks as it suggests selling off and buying back tokens as needed to secure its $1 rate.
The project has met criticism as it doesn't allow users to immediately pull out the funds after depositing collateral.In the case of trading tokens beyond the $1 price, Fei's mechanism penalizes the purchaser.
This point isn't beneficial for users as at the moment the coin trades at around $0.8.
The issue appears as the protocol owns and manages the capital itself. As stated by Fei, this aims to make the stablecoin more capital efficient and decentralized compared to other stablecoins.