Fei Labs, the firm behind the Fei Protocol stablecoin, raised 639,000 ETH, roughly $1.27 billion at current prices, in commitments for its Fei Protocol stablecoin on Saturday.
The ETH raised will be used as collateral to mint Fei stablecoins. According to Fei Labs, over 17,000 unique addresses participated in the "Genesis" event of the Fei stablecoin. As The Block Research writes, the Fei stablecoin uses a "Protocol Controlled Value" to sell and buy back supply to maintain its $1 peg. The Fei Protocol also disincentivizes sellers of its stablecoin below its peg by enacting a growing burn penalty for Fei sales.
With its raise, Fei Labs also provided liquidity on Uniswap, immediately making it the largest pool on the decentralized exchange with over $2.6 billion in liquidity.