Fantom desires to provide a foreseeable & low-cost system
Fantom happens to be an extremely upgradable blockchain platform in the case of DeFi, dApps, and enterprise applications. The entire team at Fantom has the desire and aim of offering a foreseeable and low-costing system where all of its connected builders, associates, and users are concerned. The path towards this would be in the form of being in the position of distributing fees, either in the form of FTM or fUSD.
Together with that, it would also mean being able to foresee future costs depending on the volume of utilization. This, in turn, will provide the opportunity for balance in planning, helping to open the doors for added institutional products. In their very opinion, moving forward for fUSD v2 and permitting it to be a fee system on-chain, the requirement would be to move from v1.
fUSD migration & liquidations https://t.co/vj4UAagaoX
— Andre Cronje (@AndreCronjeTech) January 29, 2023
In this very case scenario, fUSD will be engaged in executing liquidations. In the case of a situation wherein fUSD debt remains the same or happens to exceed the FTM, or in that case, the sFTM support, liquidation will take place. If the support happens to be in sFTM, the stake will be unstaked with absolute immediate effect.
As a matter of fact, all rewards will also be asked for. If it happens to be a validator, if it travels below the minimum stake, it will not be possible for the validator to either produce blocks or, for that matter, get the benefit of block rewards.
To provide all connected users the opportunity of closing out their individual positions, a swap tool has been duly created, which will offer the users the option of swapping DAI to that of fUSD, following which they can settle their individual balance amount of debt. The users will have enough time provided to close the positions, and they will also be notified in advance regarding the liquidations going live.