What is FRST
Tokens
1. What is frst?
Introduction to First Digital USD (FDUSD)
First Digital USD (FDUSD) is a stablecoin backed 1:1 by the US dollar, launched in June 2023, issued by FD121 Limited, a subsidiary of the Hong Kong financial company First Digital Limited. FDUSD aims to provide stability and trust in the volatile Tokens market.
Main Features
- Stability: Each FDUSD is backed by 1 US dollar or equivalent reserves, ensuring value stability and reducing risks associated with the common price volatility of Tokens.
- Transparency: The issuer provides a "proof of reserves" report audited by an independent auditor to demonstrate that the circulating FDUSD is fully supported by equivalent cash or cash equivalents.
- Programmability: FDUSD supports integration with smart Futures, enabling automated and efficient transactions within the blockchain ecosystem.
- Compatibility: FDUSD operates on the Ethereum and BNB Chain networks, adhering to the ERC-20 and BEP-20 token standards, ensuring compatibility with various decentralized applications and Tokens exchanges.
Use Cases
- Remittances: FDUSD provides a fast and cost-effective solution for cross-border transactions.
- Payment Solutions: Businesses and individuals can use FDUSD for processing payments with lower fees and shorter transaction times.
- Hedging Price Volatility: FDUSD serves as a reliable hedging tool, allowing investors to convert other Tokens into FDUSD to lock in profits or protect their investments from market fluctuations.
- Decentralized Finance (DeFi) Applications: FDUSD can be used on various DeFi platforms for activities such as liquidity farming, mining, lending, and staking.
- Stable Value Storage: FDUSD is a reliable alternative to other Tokens, allowing users to hold assets in digital form without being affected by the volatility of other digital assets.
Risks
- Decoupling Risk: The value of FDUSD may decouple from the US dollar, leading to fluctuations in its value.
- Operational Risk: FDUSD faces operational risks, including fraud and cyber risks.
- Regulatory Risk: Changes in regulations may affect the operation of FDUSD.
- Counterparty Risk: FDUSD involves third-party financial intermediaries, which may impact its operations.
- Market Risk: The stablecoin market is highly competitive with numerous alternatives.
- Technical Risk: FDUSD operates on a blockchain network, presenting a range of technical risks.
- Custodial Risk: The reserves backing FDUSD are held in independent accounts by First Digital Trust Limited, posing risks related to asset custody.
2. Who founded frst?
The concept of Tokens was first mentioned in the 1980s, but the first decentralized Token is Bitcoin (BTC), created in 2009. The founder of Bitcoin is an individual or group using the pseudonym "Satoshi Nakamoto."
3. What venture capital firms invested in frst?
According to the information provided, the following venture capital firms have invested in Tokens-related projects:
a16z: Started investing in the Tokens space in 2013, has raised $2.2 billion for its crypto fund, and plans to raise an additional $3.5 billion for its new Tokens fund.
Coinbase Ventures: Established in 2018, primarily invests in Tokens-related startups and participated in several large financial deals in 2021, including FTX, Amber Group, CoinSwitch Kuber, and ConsenSys.
Ikigai Asset Management: Launched a $40 million blockchain venture fund focused on investing in private blockchain companies.
Blockchain Founders Fund: Launched the BFF II fund, completing $75 million in fundraising, with an investment strategy aimed at seed and pre-seed stage projects.
Dragonfly Capital: Raising $500 million for its new fund, Dragonfly Ventures III Feeder Fund, focusing on areas such as NFTs, DeFi, and Ethereum Layer 2 solutions.
Brevan Howard: Invests in the crypto space through its BH Digital division, allocating $250 million.
776 Management: Raised $500 million for two new funds focusing on the Tokens industry.
Nural Capital: Plans to raise $150 million to invest in hedge funds and venture capital managers in the Web3 space, as well as in blockchain token investments and direct equity investments.
Infinity Ventures Crypto: Raised $70 million for its first fund, investing in Web3 startups in Asia and America.
Electric Capital: Raised $1 billion for its two funds, focused on Tokens startups.
Hack VC: Launched a new $200 million fund focused on investing in early-stage crypto, Web3, and blockchain startups.
gumi Cryptos Capital: Established a $110 million early stage fund investing in DAOs, guilds, Web3 applications, and gaming.
Stillmark: Plans to raise $500 million for its new fund, Stillmark Credit Fund, focusing on supporting investments in Bitcoin Lightning Network infrastructure.
Investcorp Holdings: Launched a new fund, eLydian Lion, aimed at investing in technology startups in the blockchain sector.
White Star Capital: Plans to raise $120 million for its second crypto fund, investing in blockchain infrastructure, trading platforms, DeFi, and data analytics companies.
4. How does frst operate?
Operational Mechanism of Tokens Liquidity Pools:
Definition of Liquidity Pool: A liquidity pool is an automated smart Futures used to store a large amount of Tokens, digital assets, tokens, or virtual coins, providing liquidity for DeFi markets like decentralized exchanges (DEX).
Operational Mechanism: Users deposit digital assets into a shared pool, known as liquidity providers. This pool is used to match buy and sell orders from different users, providing a more efficient trading experience through automated processes and eliminating the need for manual intervention.
Automated Market Maker (AMM): AMM is a platform that allows traders to exchange digital assets in a decentralized manner without relying on traditional centralized exchanges. However, AMMs require constant maintenance and manual adjustments to function properly, while liquidity pools provide a more effective solution through automation.
Security and Cost-effectiveness: Liquidity pools offer greater security through their decentralized structure, reducing the likelihood of experiencing fraud or manipulation when using centralized platforms. At the same time, liquidity pools provide higher anonymity and lower transaction fees.
Steps to Participate in a Liquidity Pool:
Select the appropriate liquidity pool and check its trading fees, minimum deposit, and withdrawal limits.
Deposit funds and provide liquidity.
Collect rewards based on trading activity within the specified price range.
Operational Mechanism of FDUSD (First Digital USD) Stablecoin:
Definition: FDUSD is a stablecoin supported at a 1:1 ratio to the US dollar, aimed at providing stability in the highly volatile crypto market.
Technical Foundation: FDUSD is based on the Ethereum and BNB Smart Chain (BSC) networks, using the ERC-20 token standard, and maintains its fiat peg through stringent custody arrangements.
Programmability: FDUSD supports smart Futures and automation features, allowing users to set conditions, automate payments, and develop complex financial products.
Advantages: FDUSD offers stability, efficiency, and programmability, supporting secure, fast, and accurate cross-border transactions.
In summary, both Tokens liquidity pools and FDUSD stablecoin play significant roles in the Tokens market, with the former providing liquidity and efficient trading experiences, and the latter providing stability and programmability.
