Discover the 7 top Sui meme coins in 2025, from MIU to HIPPO, as they gain traction with fast growth, strong communities, and unique use cases.

 blockchains, have continued to rally as investors make bold moves with renewed risk appetites. As a 

 blockchain, Sui has continued to attract crypto enthusiasts — especially meme coin lovers, who appreciate the platform's speed and affordability.

Recent surges in trading volumes and market caps of SUI meme coins — such as MIU, LOFI and BLUB — highlight growing investor interest. For instance, BLUB experienced an 88% increase in just 24 hours from Apr 22–23, 2025, contributing to the broader rally of SUI as its price surged over 63% in April 2025.

These coins often incorporate unique themes and philanthropic efforts, such as HIPPO's wildlife conservation donations, that foster strong community support.

Let's look at the top Sui meme coins making waves in the crypto market.

​Sui-based meme coins are rapidly gaining traction due to a combination of technological advantages and vibrant community engagement. The 

 parallel transaction execution and unique gas pricing mechanism enable ultrafast transaction speeds and minimal fees. This makes Sui an ideal platform for the high-volume, speculative trading that meme coins often entail. Sui’s scalability and secure Move programming language attract developers seeking efficient and safe environments for launching their new tokens.​

 (DeFi) further supports meme coin growth, providing avenues for increased utility beyond mere speculation. Following are the top ​Sui meme coins based on market cap, as of Apr 30, 2025.

 is currently the leading ​Sui-based “cat meme coin,” with a market cap of $70.6 million. It draws in investors with its fun, energetic branding and community-driven spirit. MIU also features expanded utility beyond its cute cat hype, allowing users to access DeFi and 

 (NFT) opportunities on its platform. It also promotes long-term commitment via its 

 process, as stakers can earn up to 15% APR with 12 months of staking.

The project frequently launches community events and contests, strengthening its dedicated holder base. MIU’s success highlights the growing appetite for meme tokens on scalable blockchains like Sui. Its playful appeal and strong tokenomics have positioned it at the top of the ​Sui meme sector. MIU is a 

 coin: its total supply is 9 trillion tokens, of which 55% are dedicated to a 

, 15% allocated to staking rewards, 15% to ecosystem development, 10% to community and 5% reserved for the team.

MIU continues to ride the wave of growing meme adoption, aiming to become a lasting force within the Sui ecosystem and beyond.

With a market cap of $35.86 million and over 50 million app users, 

 (MEMEFI) is an ambitious Telegram project that blends the world of memes with SocialFi utilities. Unlike typical meme coins that rely solely on hype, MemeFi aims to engage Telegram users with an interactive web3 meme-themed clicker game that offers daily giveaways and incentivizes ad creations for enterprises.

Its native token, MEMEFI, is more than just a mere meme coin, and has use cases for 

You can trade MEMEFI on Bybit’s Spot trading platform (

 is a rising ​Sui meme coin known for its chill "lofi vibes" branding that resonates with a younger, internet-native audience. Beyond its fun appearance, LOFI has demonstrated solid growth by tapping into communities through music, lifestyle and crypto.

The project also ties in eco-conscious initiatives, focusing on providing clean water sources for global communities and addressing the impact of ocean waste and plastic on marine health, giving it a mission-driven angle not typically seen in meme coins. Besides direct donating, minting LOFI Mystic Yetis NFTs also helps contribute to the cause, with 20% of the proceeds going to the LOFI Foundation.

Lofi’s accessible vibe and shrewd marketing strategy continue to attract new supporters, helping LOFI to stand out in the increasingly crowded ​Sui meme scene. 

 (commonly known as HIPPO) is a community favorite in the ​Sui meme world. The HIPPO token mixes humor with philanthropy, donating a portion of its revenues to wildlife conservation initiatives, starting with Thailand’s Khao Kheow Open Zoo that houses Moo Deng, the adorable pygmy hippopotamus that inspired this viral meme coin. This feel-good approach has helped build an extremely loyal community around the HIPPO token.

Sudeng’s dual focus on memes and real-world impact gives it staying power. The project’s growing community engagement ensures that HIPPO remains relevant in a fast-moving crypto space.

You can buy HIPPO as a USDT Perpetual contract on Bybit (

 is making waves in the ​Sui meme coin ecosystem with its aquatic-themed branding and integration of meme culture. Known for its friendly, community-first approach, BLUB frequently hosts giveaways, meme competitions and liquidity incentives to maximize engagement.

The coin’s fun branding and its steady increase in active users have helped BLUB climb the ranks quickly. Its strong online presence and viral meme campaigns have attracted crypto enthusiasts who are looking for the next breakout meme project. As it continues building partnerships and expanding its reach, BLUB demonstrates strong potential to become a staple in the Sui meme scene.

 (TOILET) is a rising meme coin on ​Sui that embraces humor and absurdity in a way that resonates with crypto culture. Its branding focuses on being intentionally ridiculous, tapping into the viral tone of meme coins that don't take themselves too seriously.

The project’s organic, community-driven growth has made it one of the most talked-about newer entrants in the ​Sui meme space. Frequent meme contests, community raids and spontaneous airdrops help fuel engagement. One of its biggest events is the distribution of Toilet Club Alpha Pass NFTs to the top 100 TOILET holders (as indicated by the Apr 21, 2025 screenshot), which gives holders access to all of Toilet Dust's projects and events and the right to vote on Toilet Dust's future development.

Despite its humorous façade, TOILET’s strong holder base and active marketing tactics suggest it may remain relevant as Sui’s meme coin ecosystem continues to expand.

 (FUD), another top project in the ​Sui meme coin category, is built around an adorable pug mascot battling FUD (fear, uncertainty and doubt) in the crypto world. With a humorous tone and clever marketing, FUD has built a vibrant community of holders who embrace both its memes and its mission.

FUD leverages trending memes, contests and airdrop rewards to keep its community marketing fresh and viral, helping it steadily grow in popularity. Its deep integration of ​Sui apps like 

 — as well as its deflationary tokenomics, whereby 20% is dedicated to token burning — makes FUD a strong contender for future growth in the meme space.

Buying ​Sui meme coins on Bybit can be exciting. Nevertheless, it's important to recognize the risks and rewards involved. 

, and their prices can swing wildly and quickly, offering chances for sizeable gains as well as sudden losses.

Always approach these investments with caution, never risking more than you can afford to lose. That said, the fast-growing ​Sui ecosystem and meme culture can create rewarding opportunities for traders who stay informed and manage their risk properly.

Currently, you can buy MEMEFI as a Spot pair and Perpetual contract on Bybit. HIPPO is also available as a Perpetual contract. This gives traders the flexibility to choose the type of exposure they want — simple buying and holding with Spot, or leveraged trading with Perpetual contracts.

Spot trading is the most straightforward way to buy ​Sui meme coins, as you directly purchase the coin and own it outright. On Bybit, the process is simple. After choosing the Spot pair, such as MEMEFI/USDT, select your preferred order type — e.g., 

(you set the price you're willing to pay) — and confirm the trade to make your purchase.

Spot trading is ideal for beginning traders, as well as anyone who prefers a more straightforward, lower-risk approach as compared to 

Buying Sui meme coins as Perpetual contracts

Bybit offers MEMEFI and HIPPO as USDT Perpetual contracts for those seeking more advanced trading options. With Perpetual trading, you don’t own the actual coins; instead, you speculate on their price movement. Key points to understand include the following:

Perpetual contracts can offer significant rewards, but require a strong understanding of 

. Always start with lower leverage and practice solid trading discipline.

Whether you prefer the simplicity of Spot or the strategy of Perps, Bybit provides flexible ways to explore the booming ​Sui meme coin market.

The rapid rise of meme coins on the Sui blockchain highlights the power of community-driven projects when they’re paired with innovative technology. Thanks to Sui’s high-speed transactions, low fees and developer-friendly environment, Sui meme coins like MIU, LOFI and HIPPO have found a perfect ecosystem in which to thrive. Each project brings something unique to the table — whether humor, philanthropy, DeFi innovation or pure meme culture — creating a vibrant and diverse ​Sui meme coin landscape.

Beginner

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7 top Sui meme coins to pay attention to in 2025

Mastercard has partnered with Circle, Paxos, and Nuvei to allow 150 million merchants to accept stablecoin payments. 

Daily top performer — Drift Protocol (DRIFT)

The S&P 500 rose 0.58% for a sixth straight gain as markets await key inflation and GDP data, alongside earnings from Meta and Microsoft. Gold fell 0.60% to $3,323 as a stronger USD and improved risk appetite limited safe-haven demand. Prices remained range-bound, with key levels at $3,260 support and $3,400 resistance. The Coindesk Indices, which tracks the broader crypto market, rose 0.51%, with Bitcoin and Ether up 0.55% and 1.31%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is DRIFT, which surged 28.7% following the introduction of Amplify, Drift's tool for simplified leverage that boosts yields with increased risk.

Drift Protocol (DRIFT), founded in 2021, is a decentralized exchange (DEX) on Solana offering spot trading, perpetuals, and market-making tools. Drift v2 builds on this by improving trading efficiency, security, and user-centric features, incorporating community feedback to enhance the platform. 

 by Drift automates leveraging strategies for higher yields by recursively borrowing against yield-generating assets. It simplifies the process, making leverage accessible with one click. However, risks such as liquidation, changing interest rates, and oracle failures exist. Amplify is designed for users with JLP or SOL LSTs seeking to boost yields with minimal complexity but comes with increased risk.

Check out the latest prices, charts, and data of 

 with Circle, Paxos, and Nuvei to allow 150 million merchants to accept stablecoin payments. The company aims to make it easier for both merchants and consumers to use stablecoins, promoting blockchain technology's mainstream adoption. Additionally, Mastercard has launched a crypto payments card with MetaMask, enabling self-custodied fund transactions with fast processing speeds. Stablecoin market growth is expected to reach $3.7 trillion by 2030.

Yesterday, Bitcoin spot ETFs saw $43.9 million in net outflows, all from non-GBTC funds, while GBTC recorded zero flows.

, a Layer-1 blockchain focused on AI agents and user-owned IP, is offering a limited-time free ticket to its Summit Series for the next 18 hours. Users can also join the Camp Points Program by completing simple tasks to earn points, which may qualify them for a future $CAMP token airdrop. A minimum of 30 points is required to be eligible. Daily check-ins earn bonus points. VPN use may be needed for access.

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Mastercard partners with Circle, Paxos, and Nuvei to enable stablecoin payments for 150 million merchants

Gold's meteoric rise in 2025 is closely tied to broader macroeconomic factors, particularly the performance of the US dollar and global stock markets. 

Gold's meteoric rise in 2025 is closely tied to broader macroeconomic factors, particularly the performance of the US dollar and global stock markets. A weakening dollar, combined with disappointing equity returns, has created a fertile environment for gold to thrive. With gold priced in dollars, any depreciation in the US currency enhances gold's relative value, attracting both domestic and international investors.

Year-to-date, gold has gained 26%, while the S&P 500 has declined by 11%. This inverse relationship underscores gold's role as a traditional 

 during periods of economic uncertainty and market volatility.

Adding to the bullish momentum, inflationary pressures are remaining persistent, further eroding the purchasing power of fiat currencies and boosting gold's appeal as a hedge against currency devaluation.

Geopolitical uncertainty and tariff risks

Trade policies under U.S. president Trump have reignited fears of global tariff wars. The uncertainty surrounding tariffs has prompted investors to seek refuge in gold, considered the "global currency" during times of economic disruption. Concerns about tariffs on key commodities, including gold itself, have added another layer of complexity to market dynamics.

Potential tariffs on gold could mirror the recent surge in copper prices, as supply constraints and increased demand drive costs higher. Exporters and importers, wary of volatile exchange rates, are increasingly opting to hold gold instead of more vulnerable currencies like the Canadian dollar (CAD), Japanese yen (JPY), euro (EUR), Chinese yuan (CNY) and Mexican peso (MXN).

By serving as a neutral reserve asset, gold provides much-needed stability amid shifting trade patterns and geopolitical tensions. As global commerce adapts to new tariff structures, the demand for gold as a "store of value" is likely to intensify.

Interestingly, the ongoing trade war dynamics suggest that for the first time in decades, gold may be emerging as the 

. As U.S. imports become more expensive due to tariffs, exporting countries earn less revenue and, consequently, reduce their investments in US Treasuries. This dynamic has led to selling pressure on Treasuries, weakening their traditional role as a safe-haven asset — and with Treasuries losing their appeal, investors are increasingly parking their capital in gold, reinforcing its unique position during this period of heightened trade tensions.

From a technical standpoint, gold's rally appears robust. The 

 (MACD) indicator remains positive, signaling that bullish momentum is intact. Notably, the 12-day moving average is above the 26-day moving average, confirming that short-term price action is outpacing longer-term trends.

 (RSI) stands at 60, indicating that while gold is nearing overbought territory, momentum hasn’t yet faded. This technical setup suggests that gold could continue its upward trajectory in the near term, especially if macroeconomic and geopolitical factors remain supportive.

The next upside technical target is pegged at $3,500, with analysts projecting a potential move toward $4,000 by year end if current momentum holds.

China's role in supporting gold prices cannot be overstated. Amid a deepening economic slowdown and strict capital controls, Chinese investors are increasingly turning to gold to preserve their wealth. With over 1.4 billion citizens seeking alternatives to a weakening yuan, demand for gold within China has surged.

This trend is reflective of a broader shift in emerging markets, whereby gold is viewed not just as an investment but as a critical safeguard against economic instability and currency depreciation. Intensifying Chinese demand provides an additional tailwind to global gold prices.

While gold commands the spotlight, silver presents an intriguing complementary opportunity. Historically correlated with gold, silver remains significantly below its ATH of $50, which was set in 2011. Given the momentum in precious metals, silver's relative undervaluation offers considerable upside potential for investors seeking diversification.

With industrial demand also supporting silver prices, silver could benefit from both safe-haven inflows and economic recovery scenarios, making it a compelling addition to a diversified precious metals portfolio.

In conclusion, gold's impressive surge to record highs is being driven by a combination of macroeconomic headwinds, geopolitical uncertainty and strong technical indicators. Trade policy risks, the weakening dollar and growing demand from China reinforce gold's role as a premier safe-haven asset.

Because technical momentum remains positive and investor sentiment strong, gold appears well positioned to continue its ascent toward the $3,500 mark by year end. Investors seeking to hedge against economic instability and currency volatility will likely find gold — and potentially silver — to be attractive additions to their portfolios in 2025.

Advanced

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Bybit x FxStreet Report: Gold could reach US$4,000 per ounce by 2025

USD1 is a stablecoin developed by WLFI that’s fully backed by short-term US government treasuries, US dollar deposits and other cash equivalents. Learn more.

, it seems that everyone is getting involved with creating and launching their own 

 these days. As something that is the lifeblood of every crypto ecosystem today, stablecoins are essential for crypto traders because they provide a stable asset for use as a 

 against the high volatility that’s inherent in other crypto assets like 

. This stability allows traders to protect their assets, particularly during market downturns when the value of more volatile cryptocurrencies can decrease rapidly. This is one reason among many why entities like 

 (WLFI) are stepping up to launch their very own USD1 stablecoins. 

Curious as to what makes USD1 different from the rest of the stablecoins? From understanding why WLFI is joining the stablecoin race to digging into what makes USD1 unique, our USD1 stablecoin guide will help you understand the impact of WLFI’s stablecoin efforts in the grand scheme of things.

 is a stablecoin developed by World Liberty Financial that’s fully backed by short-term US government treasuries, US dollar deposits and other cash equivalents. Designed (among other reasons) to provide stability in an otherwise inherently volatile market, USD1 offers users a reliable digital asset that maintains a 1:1 peg with the US dollar. This means that for every USD1 token in circulation, there is an equivalent amount of reserves held securely.

One of USD1’s standout features is its custodial arrangement with BitGo, a leading provider of institutional-grade security for digital assets. With BitGo managing its reserves, USD1 aims to promote transparency and trustworthiness. These are two critical factors for retail traders and beginners entering the crypto space.

Additionally, USD1 is compatible with major blockchain networks, such as Ethereum and Binance Smart Chain (BSC), making it versatile and accessible for a wide range of use cases. Whether you’re looking to trade cryptocurrencies, participate in 

 (DeFi) or make cross-border payments, USD1 provides a seamless solution.

Why is World Liberty Financial launching a stablecoin?

The decision to launch USD1 stems from World Liberty Financial’s vision to empower individuals and institutions with secure and accessible financial tools. Here are some key reasons behind this strategic move.

Addressing the demand for stablecoin alternatives

The crypto market has seen exponential growth in recent years, with stablecoins playing an increasingly prominent role because of their innate stability. Retail traders are seeking alternatives to traditional banking systems that offer faster transactions and lower fees. That's where USD1 comes in, as it caters to this demand by providing a stable digital asset that’s fully backed by short-term US treasuries, US dollar deposits and other cash equivalents. Additionally, USD1 eliminates transaction fees on minting and redemption, making it even more accessible for users in the market for stablecoins.

 face criticism over their lack of transparency regarding reserve management and overall transparency. To combat this, WLFI aims to set a new standard for trustworthiness in the stablecoin industry with transparent backing. Also, by partnering with BitGo and delegating it to hold its reserves, WLFI aims to ensure a high standard of transparency and security for users and institutions alike as USD1 reserves are subject to quarterly independent audits and real-time on-chain verification.

DeFi has revolutionized the way people access financial services, but it relies heavily on stablecoins for liquidity and transactions. USD1’s compatibility with multiple blockchains like Ethereum and BSC ensures seamless integration into DeFi protocols. This multichain approach supports a wide range of use cases, from retail payments to institutional liquidity management and cross-border settlements.

USD1 would operate as a fully-backed stablecoin that maintains its peg to the US dollar through meticulous reserve management and blockchain technology integration. Here’s a deeper look at its inner workings.

As previously mentioned, each USD1 stablecoin is backed by an equivalent amount of reserves held in US dollars or highly liquid US Treasury securities that are held in custody by BitGo. Thanks to this institutional-grade security and transparency designed to verify reserve holdings, users will be inclined to have more confidence in the stability of their assets.

USD1 is designed to function on leading blockchain networks, such as Ethereum and BSC. Its smart contracts have undergone independent security audits, and utilize multi-signature approvals for transactions, ensuring robust operational security. This interoperability allows users to transact across multiple platforms while benefiting from low fees and high-speed transfers.

WLFI prioritizes compliance with global regulations to ensure that USD1 remains a trusted asset for users worldwide. The platform incorporates 

 protocols, making it suitable for both retail and institutional users who require compliance with international financial standards. By adhering to strict guidelines and conducting regular audits, the company minimizes risks associated with regulatory scrutiny.

How will this impact the current crypto landscape?

The introduction of USD1 has significant implications for the broader crypto ecosystem.

USD1 enters a market dominated by established players like 

. By placing an even greater emphasis on transparency, security and compliance, USD1 adds to the ongoing evolution of industry standards. Its approach may encourage further improvements across the stablecoin ecosystem as the market continues to mature.

Empowering retail traders and driving institutional adoption

For retail traders, USD1 effectively offers an accessible way to engage with crypto without worrying about volatility. Its user-friendly design could encourage more individuals to explore digital assets.

On the institutional side of things, USD1’s regulatory-first design and institutional-grade infrastructure are likely to attract greater institutional participation, providing reliable liquidity for trading, settlement and DeFi applications.

USD1’s transparent reserve management and compliance features may set new industry benchmarks, pressuring other stablecoin issuers to adopt similar practices and potentially shaping future regulatory frameworks.

Stablecoins are integral to DeFi protocols as they provide liquidity for lending, borrowing and trading activities. With its compatibility across major blockchains, USD1 could become a preferred choice for DeFi participants seeking reliable assets.

USD1’s stability makes it an ideal tool for cross-border payments and remittances. By eliminating currency conversion fees and delays associated with traditional banking systems, this stablecoin could revolutionize international commerce.

However, USD1’s launch has also raised concerns regarding potential conflicts of interest, regulatory arbitrage and political influence, highlighting the need for ongoing oversight as stablecoins gain prominence. These risks and criticisms extend beyond the typical scrutiny faced by stablecoins, touching on issues of governance, constitutional law, financial stability and the integrity of US political institutions.

Conflicts of interest and political influence

USD1 stands apart from other stablecoins due to its direct association with a sitting or former US president and his family, who reportedly control 60% of World Liberty Financial’s equity. This unprecedented overlap between private financial interests and public regulatory power raises the specter of significant conflicts of interest. Critics argue that a major political figure issuing a stablecoin could shape regulations to benefit their own financial product, or monetize public policy for personal gain. Such actions could ultimately blur the line between state and personal interests and undermine democratic safeguards.

The introduction of USD1 raises concerns about regulatory arbitrage, whereby gaps in regulations could be exploited. Thus, there are understandably fears that political influence could compromise the impartiality of regulatory agencies, undermining oversight. 

Furthermore, if USD1 gains widespread use without strong federal oversight, it could pose a systemic risk to financial stability, potentially opening it to use for political leverage. Questions also persist regarding the transparency and real-time verification of USD1's reserves, despite claims of full backing by US Treasuries managed by BitGo.

Due to the global and open nature of stablecoins, USD1 could potentially be acquired by anyone, including sanctioned individuals or foreign governments, raising concerns about foreign influence. Observers worry that foreign entities might use USD1 to gain favor or leverage over US policy, bypassing traditional safeguards. Additionally, reported investments from controversial figures under investigation are fueling concerns about the potential for illicit funds entering the DeFi system through USD1.

The potential for those controlling USD1 to influence its regulation creates a conflict of interest, opening doors for market manipulation. Access to regulatory levers and inside information could allow them to unfairly advantage USD1, damaging market competition and investor trust. This situation could also set a dangerous precedent, encouraging other political figures to launch similar ventures — and further blurring the lines between public service and private financial gain.

Calls for oversight and legislative action

In response to these multifaceted risks, prominent lawmakers are demanding ethical investigations and the implementation of stronger regulatory frameworks specifically designed to address the challenges posed by “politically connected” stablecoins such as USD1. Ongoing congressional debate surrounding stablecoin legislation highlights the urgent need to establish clear rules to ensure transparency, compliance and the protection of both the financial system and democratic processes as these digital assets become more globally integrated.

World Liberty Financial’s launch of USD1 marks an important milestone in the evolution of stablecoins. By emphasizing trustworthiness, transparency, usability and regulatory compliance, USD1 addresses key concerns faced by retail traders and institutions alike. Whether you’re new to crypto or an experienced trader looking for reliable assets, USD1 offers a secure gateway into the digital economy. As stablecoins continue to play an essential role in driving global crypto adoption, innovations like USD1 pave the way for a more inclusive financial future.

Intermediate

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USD1: World Liberty Financial's solution to stablecoin demand

Crypto

Stablecoin

The combination of price stability and decentralization make Fei protocol (FEI) a promising investment. Find out more about this rising stablecoin today.

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Stablecoins are a popular and versatile cryptocurrency in the world of decentralized finance. They help reduce the price volatility levels of cryptos in general, thus reducing risks and providing hedging opportunities within the industry. However, existing stablecoin models are still weighed down by several issues. Two major disadvantages of current stablecoin systems are that they’re often secured by other volatile cryptocurrencies, or governed by centralized third parties. Thus, current solutions are often not really decentralized, cannot be scaled, and are potentially inefficient due to over-collateralization.

The Fei protocol was developed to solve these existing problems. 

With its investment in the Fei protocol, the software company Advanced Blockchain AG supports the development and usage of this improved stablecoin model, which combines price stability with complete decentralization.

The Fei protocol is a fully decentralized stablecoin project developed by Fei Labs Inc. The project aims to improve upon the concept of stablecoins by implementing various innovations. It uses a stability mechanism called Protocol Controlled Value (PCV), as well as numerous other mechanisms to keep the 

 liquidity pool and FEI, its native stablecoin, close to the exchange rate of the US dollar. It also introduces a native governance token called TRIBE. 

The Fei protocol managed to raise $19 million in March 2021 from major industry venture capital firms. Users who wanted to support the Fei project during its launch phase could buy tokens at a discounted price of $0.50 and up. The primary release target was set at 100 million FEI, as the development team decided this would be enough to integrate FEI into other 

 protocols. After the discount phase ended, users were required to invest $1.01 worth of ETH in order to issue $1 worth of FEI. This approach allowed Fei to accumulate large ETH reserves, and to quickly and efficiently provide its users with a stablecoin.

It’s important to know how the ETH token is used. The project forms an FEI/ETH liquidity pool on Uniswap (the largest 

 on Ethereum’s blockchain), which immediately provides the stablecoin with a liquid secondary market. The Fei protocol itself is the main liquidity provider for its stablecoin, which sets it apart from other algorithmic stablecoins that attract third parties by using the inflation of the token.

FEI is an ERC20 stablecoin native to the Fei protocol. It’s a decentralized stablecoin that uses various mechanisms in order to (in theory) sustain a more efficient and fairer capital distribution than other projects. The purpose of the Fei protocol is to create a liquid market where FEI/ETH can be traded closely to the ETH/USD pair.

Unlike most other tokens, FEI’s token supply is essentially unlimited. It’s governed by the minter and burner contracts that control the token release through bonding curves and trade incentives. The FEI token demonstrates certain nonstandard functions of the ERC20, but only for a subset of transactions. 

The ETH bonding curve will have a target supply of 250 million FEI set as a bootstrap target. This target, also known as “Scale,” will be the mark when FEI will stabilize its price at $1.

FEI’s peg is managed by two core elements of the Fei protocol, namely:

While the project will launch with only one bonding curve denominated in ETH, it will allow for other curves to be created as time passes. 

A stablecoin is a cryptocurrency that is tied to another asset class, such as a national currency. This usually stable and quite predictable equivalent value ensures an equally stable cryptocurrency price. Stablecoins are therefore considered relatively low-risk, low-volatility investments, especially compared to other types of cryptocurrencies.

Most stablecoin projects have developed their own stability mechanisms. Their value is generally tied to fiat currencies or other cryptocurrencies. These are called fiat-collateralized and crypto-collateralized stablecoins, respectively. However, there is another interesting category called non-collateralized stablecoins, which derive value from algorithms that adjust the token supply based on demand for the token itself.

A fiat-collateralized stablecoin derives its value from a single fiat currency, or a basket of currencies. This model is used by the likes of Tether, in which case a centralized company holds assets and issues tokens based on its holdings. These tokens represent a kind of promissory note (IOU). Such a mechanism gives tokens value because it represents a claim to another asset with a certain value. The problem with this approach, however, is that it’s centralized. With this model, a certain level of trust must be placed in the issuing party. Token holders have to trust that the token issuer owns the corresponding assets to pay out the tokens. This model leads to serious counterparty risk for token holders. Tether highlights the issues of this model, as the solvency and legitimacy of the company have been publicly questioned several times in the past.

Crypto-collateralized stablecoins derive their value from their underlying cryptocurrencies. These stablecoins are, therefore, backed by other trusted assets on the blockchain. This model was originally developed by 

, and is also used by other stablecoin projects. In this case, the security and stability of stablecoins are backed by another cryptocurrency. This approach’s main advantage is its decentralization. The collateral is stored on a smart contract so that users don’t have to rely on a third party. However, the main problem with this approach is the ability of projects to handle the volatility of the underlying cryptocurrency. If its value drops too quickly, the issued stablecoins may no longer be sufficiently secured. While the solution to this problem would simply be over-collateralization, this would result in inefficient use of capital, and larger amounts of money would have to be frozen as compared to the fiat model.

Non-collateralized stablecoins use algorithms to adjust their value, subject to forces of demand and supply. Depending on the coin’s current price, more stablecoins are issued to or taken away from the free market. This mechanism intends to provide counter-regulation and keep the token price as stable as possible. In this way, the system is independent of other currencies and assets. It is also decentralized, because it’s controlled exclusively by the algorithm. However, this model also has its drawbacks. The system needs continuous growth to remain stable. In addition, it’s difficult to analyze and predict the extent to which the system can remain functional and, therefore, to determine at what value the system would collapse — as well as how much it can withstand.

Who Is the Founder of the Fei Protocol (FEI)?

The Fei protocol was launched on March 31, 2021, by Joey Santoro, Brianna Montgomery, and Sebastian Delgado (left to right in the image below).

Fei is based on two innovative ideas, Protocol Controlled Value and direct incentives.

is a subset of the user-owned total value locked (TVL) model used by numerous stablecoin projects. With the TVL model, users receive an IOU for their deposits and can withdraw them whenever they like (outside of the lockup period). Projects that use the TVL model have to rely on token distribution rewards, meaning that the deposited capital remains there as long as the rewards are active. 

PCV tackles this system in a rather peculiar way. Unlike the aforementioned model, the Fei protocol retains the user-deposited funds permanently. By doing this, the protocol can focus on important tasks — such as maintaining the $1 peg. 

This protocol owns the deposited ETH and locks it in Uniswap’s FEI/ETH LP position as the “official market.” There are two main scenarios that cause the protocol to adjust how it works:

The protocol reweights Fei at 4-hour intervals, with the minimum distance below the fixed point being 0.5% before reweighting Uniswap prices to maintain the PCV-fixed price. 

 feature is one that, as the name suggests, incentivizes the usage and trading activity of the FEI stablecoin. It ensures that the exchange rate is stable, therefore discouraging investors from selling their tokens when the price drops below $1. When investors sell FEI, part of the FEI they sell will be burned.

The most important part of the direct incentive mechanism is the use of rewards and penalties to reach the desired FEI price. The protocol uses token minting and burning in order to maintain the $1peg. 

While the incentive handles instances where the price of FEI is below the $1 mark, arbitrage takes care of those where FEI is trading above the aforementioned price. Thus, the ecosystem provides full support to the price of FEI. 

At the time of writing, one FEI is worth $0.9993.

The Fei development team created their decentralized autonomous organization (

) with TRIBE as its governance token. The total supply of TRIBE is capped at one billion, out of which 100 million are reserved for the genesis group participants. 

Holders of the TRIBE token get to vote on the Fei protocol’s future governance proposals, while being able to earn a share of the DEX’s transaction fee by contributing to the Uniswap FEI/TRIBE liquidity pool. TRIBE holders can also stake their FEI/TRIBE tokens to earn more TRIBE, with no lockups on the tokens staked.

As of this writing, there are 437,749,741 FEI in circulation, with a 

FEI stablecoin does not have a maximum supply. Its supply increases or decreases according to demand. Coins enter circulation with the help of return curves, which are used to peg the FEI price at $1. When the demand for FEI increases, users can repurchase it on the bonding curve. Entry prices were initially set low to reward those who supported the project early. In addition, the Fei protocol supports the creation of new bonding curves. However, its primary bonding curve will be denominated in ETH. Even though ETH will not be sold on bonding curves, a secondary (PCV) market will be created, and users will be able to return to ETH through this market if they wish to do so.

The Fei protocol’s goal is to create a completely decentralized stablecoin that doesn’t suffer from the issues that many current stablecoin projects face. Therefore, there will be no token printing done by third parties, nor over-collateralization to safely maintain the token peg.

The Fei protocol has three main advantages:

In the long term, the inherent utility of FEI, especially in the 

Stablecoins form the basis of decentralized finance (DeFi). Users are looking to use Dapps like Compound and 

 without worrying about price fluctuations. However, most — if not all — existing stablecoins are inadequate at this point. Fiat-backed stablecoins such as USDT are very centralized, as their collateral is kept by a single entity. Meanwhile, crypto-backed stablecoins are facing scalability problems. In addition, such stablecoins largely require debt and leverage for transaction volumes. 

However, with the usage of proprietary mechanisms, the Fei protocol can provide the stability, simplicity, and ubiquitous availability that other stablecoin projects can’t.

What Is the Fei Protocol (FEI)?

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