Amid the recent market volatility and as cryptocurrencies move into the mainstream, the demand for stablecoins surged past $100 billion last week. But with this incredible growth there is also growing skepticism over the assets backing coins like Tether and a greater understanding that existing stablecoins are not mitigating risk but simply shifting it.
ICHI has officially launched its Decentralized Monetary Authority to give any crypto community full control over its own stable currency. Stablecoins created through ICHI — known as “oneTokens” — are capital efficient, pegged to the US dollar and fully-collateralized by a blend of fiat coins and the community’s native scarce token. Unlike existing stablecoins that remove value from other cryptocurrencies and make market declines worse, ICHI is designed to maintain its peg and increase the value of any crypto community’s native scare token. Unlike Tether, ICHI is also 100% on-chain so anyone can see the reserves and collateral pools at all times.
“Until ICHI, stablecoin farming has had a parasitic effect on lending platforms like Wing, allowing leveraged stablecoin holders to yield farm most of the rewards with little risk,” said Erick Pinos, Ontology Americas Ecosystem Lead and advisor at Wing, which used ICHI to create a new oneWing stablecoin. “ICHI has disrupted this process, benefiting everyone in the community by creating a stablecoin that locks up more WING the more that it is minted. ICHI aligns the interests and incentives between WING farmers, lenders, borrowers, and holders.”
ICHI has quickly secured several high-profile partners including Solana, SushiSwap, 1inch Network, Loopring and Bancor as more projects recognize that an alternative stablecoin is needed. ICHI has been used to mint millions of dollars in stablecoins for BTC, ETH, Chainlink and others and all stablecoins have maintained their peg during recent market declines.
“The popularity of cryptocurrencies as investments has obviously skyrocketed but the real promise of DeFi is so much bigger than that. Our vision at ICHI is to help give people complete freedom over how they spend, invest, save and and otherwise use their money,” said Bryan Gross, former Principal Product Manager of IBM Blockchain who now serves as an ICHI Steward. “ICHI is built to provide every crypto community with the tools they need to operate all aspects of a sustainable, scalable economy while keeping value locked in their own communities rather than transferring value out.”
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