February 2, 2021, 6:00AM EST
• 9 min read

Introduction to the Fei Protocol

Quick Take

  • Fei Protocol acts as an algorithmic pseudo-central bank that issues the FEI stablecoin
  • Crypto-asset collaterals that back the stablecoin are controlled by the protocol and are deployed to Uniswap as liquidity
  • The algorithm penalizes selling and incentivizes buying activities on Uniswap when FEI is trading below the $1 peg

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