Fei USD

Fei arrived in April 2021 with one of DeFi's largest launches ever, gathering roughly 1.3 billion dollars of Ether, and then promptly stumbled. A contract quirk left the algorithmic token trading below its dollar peg almost immediately, penalising anyone who tried to sell and souring the debut. The protocol later merged with Rari Capital to form Tribe DAO, a combination that turned disastrous when an April 2022 exploit of the Fuse lending markets drained close to 80 million dollars. By that August the community voted to wind the project down, offering FEI holders redemption at one-for-one into DAI. FEI is defunct today: it no longer functions as a live stablecoin, and its history is cited as a case study in the fragility of algorithmic pegs and the governance risks of hastily merged DeFi treasuries.