​Flamingo launches FUSD on TestNet, to begin beta testing marg | Crypto Bubble

​Flamingo launches FUSD on TestNet, to begin beta testing margin maintenance bot soon

Flamingo Finance has launched the FUSD stablecoin on Neo N3 TestNet ahead of its tentative MainNet launch in early 2023. The FUSD stablecoin will be modeled after MakerDAO’s DAI token, which uses over-collateralization of digital assets to ensure its peg is held to US $1.

In parallel, the team is also working on a margin maintenance bot to help an FUSD loan maintain its collateral value before liquidating the Vault.

Stablecoins are designed to maintain a consistent price, typically $1, and can enable users to generate yield on a digital asset while potentially alleviating adverse effects from market volatility.

At the time of press, the Neo blockchain only supports one stablecoin – a wrapped version of the Tether stablecoin, fUSDT, which is backed 1:1 by the US Dollar. Instead of a fiat-backed stablecoin, digital assets will overcollateralize FUSD, the first native stablecoin on Neo N3.