The 1inch Network and ICHI partner to create a new stablecoin
ICHI’s Decentralized Monetary Authority (DMA) protocol enables the creation of one1INCH, an in-house stablecoin for easier payments and more lucrative rewards.
The 1inch Network is happy to collaborate with ICHI, a protocol for creating the world’s first Decentralized Monetary Authorities (DMAs), in launching a new in-house stablecoin for the 1inch community — one1INCH. This stablecoin will provide a reliable form of payment for DeFi transactions and enable to offer better incentives and rewards to 1inch stakers and liquidity providers.
The one1INCH stablecoin can be used as a stable unit of exchange:
- to pay operating expenses;
- to provide liquidity;
- to distribute liquidity rewards.
Unlike other stablecoin projects that remove value from scarce cryptocurrencies that have to be sold to mint coins, ICHI’s DMA drives value back to crypto communities because stablecoins created through its protocol are minted by a blend of fiat-backed tokens and the community’s native scarce token.
The new one1INCH stablecoin will be minted with a blend of the 1INCH token and USDC. Stablecoins minted through ICHI — known as oneTokens — are capital-efficient because they can be minted and redeemed for exactly $1 of value.
“The one1INCH stablecoin can grow into an economic game changer,” says Sergej Kunz, co-founder of the 1inch Network. “At scale, its treasury can drive value back to 1inch DeFi operations because it is minted and over-collateralized with 1INCH tokens.”
“Projects are realizing that if it’s not your stablecoin, it’s not your money,” says Bryan Gross, former Principal Product Manager of IBM Blockchain who now serves as an ICHI Steward. “We’re thrilled to partner with the 1inch Network to release the one1INCH token and give the 1inch community complete freedom over how to spend, invest, save and otherwise use its money.”
As part of the launch, the 1inch Foundation is contributing $100,000 in 1INCH for collateral, which ICHI is matching, to support the one1INCH tokens. These funds will enable the one1INCH tokens to be minted using 80% USDC and 20% 1INCH rather than the typical 95% USDC and 5% 1INCH, further increasing the demand for and keeping the value locked in 1INCH tokens.
In addition to enabling any crypto project to create an in-house stablecoin, ICHI’s protocol provides every crypto community with tools needed to operate all aspects of a sustainable, scalable economy. This includes establishing a community-governed treasury that is created through the minting of oneTokens. Each community’s oneToken becomes over-collateralized when the amount of value in the community treasury is greater than the amount of existing minted oneTokens. This occurs as a result of the community investing in DeFi projects to earn yield.
Stay tuned for more exciting announcements and updates from the 1inch Network!