​Flamingo launches new Bonus Pools in an effort to bring FUSD | Crypto Bubble

​Flamingo launches new Bonus Pools in an effort to bring FUSD into parity with US $1

Flamingo has launched the FUSD pool bonus program intending to bring the price of the stablecoin into parity with US $1. To incentivize users to mint FUSD instead of spot purchasing the stablecoin, the team is offering additional yield to minters that contribute FUSD paired against other assets to liquidity pools.

FUSD is an over-collateralized stablecoin backed by FLUND, bNEO, and fWBTC, and can be minted on the Lend module of Flamingo. Since its Jan. 10 launch, Neo’s native stablecoin has not been able to maintain its peg to $1, trading as high as $1.25. The Flamingo team theorizes that the reason for the price differentiation is that more people are purchasing FUSD on the market than are minting the stablecoin.

As the total supply for the FUSD token is currently low, the free market pressure is increasing the token’s price to meet the demand. By incentivizing users to mint FUSD, the team hopes to balance supply and demand such that FUSD will align in value at US $1.