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Fuse upgraded stablecoin
Voltage fUSD addresses liquidity fragmentation (by centralizing all stablecoin liquidity into a single usd peg asset) and Stablecoins systemic risk.
fUSD is a USD-pegged token backed by a basket of popular stablecoins with built-in yield generated from Stable SWAP fees.
In order to migrate fUSD to fUSD V2 just go to the swap page.
Swap the old fUSD you are holding for the new fUSD V2 and that’s it. That’s how easy the migration is.
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When trying to mint fUSD V2 there are 2 ways:
- Single mint: you can mint fUSD with any token (usdc, busd or usdt). Just swap you stablecoin for fUSD V2 in the swapping module
- Multi mint: You will need to provide at least two assets as collateral to mint fUSD V2. We strongly recommend going for this option since if this is done in equal amounts you will get less or no slippage. (In case the pools are unbalanced, you might get some bonus!)
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Minting is the process of depositing peg value assets as collateral to create fUSD. Prices for minting take into account the weights of each underlying asset in the pool. The lower the weight of the asset in the pool the higher the amount of fUSD the user will receive in return. Minting takes into account the pool weights.
The pool has a set of max and min weights. This means that no single asset could make up more than the max weight of the pool or less than the min weight. This is to limit exposure to a single underlying asset in the case of a depeg. The minimum for each asset is 20% and maximum 50%.
In our context, we refer to burning as redeeming because we are exchanging fUSD for one of the assets in the underlying pool and then finally burning the provided fUSD. During redemption the user selects which underlying asset they would like to receive in exchange for equivalent amount of fUSD. The rate received will depend on the weight of the asset in the pool and determined by the bonding curve.
fUSD collateral will be used to swap between assets within the underlying assets, to facilitate these swaps the AMM uses the Stableswap bonding curve formula that is built specifically for trading pegged assets implemented by curve.
When users swap assets within the pool they are charged a fee of 0.02% which can be altered in governance. Users are also charged a fee when they redeem by burning fUSD for underlying pool assets, the fee is 0.02% which can also be changed by governance.
The Fees accrued by fUSD will go to a special fUSD staking pool where by staking your fUSD users will be receive those fees.
In case that one of the tokens in the pool depegs, we call isolateAsset function which isolates the particular asset and puts the pool in depeged mode. In depeged mode the swapping and adding liquidity are deactivated.
For security reasons only withdrawing balanced liquidity is permitted.
The DAO can vote to modify the following functions:
- Set the fees for swapping
- Set the fees for redemption
- Set the pool weights