The Fedz FUSD

Most onchain dollars pile up excess collateral to stay safe; The Fedz deliberately does the opposite. Its FUSD, issued on Arbitrum, is an explicitly under-collateralized stablecoin that borrows the logic of fractional-reserve banking, holding less than a dollar of backing per token and leaning on mechanisms meant to prevent panic withdrawals, including structured Private Liquidity Pools. The Fedz Foundation frames the token as experimental and disclaims regulatory compliance, reserving the right to impose KYC at its discretion. There is no par redemption window for holders, so the peg depends on open-market trading and the protocol's incentives rather than a guaranteed buyback. That fractional design is ambitious but historically the most fragile corner of stablecoin engineering, and FUSD remains a small, high-risk project rather than a proven dollar. Treat it as a research bet on capital-efficient stablecoins, not a cash equivalent.