On the back of a strengthening crypto market, one Ethereum (ETH) hard fork project and two low-cap altcoins are taking off in the past week. One of the biggest standouts of the week is ICHI, the native token for the stablecoin development project of the same name. The 225th-ranked crypto asset by market cap is […]
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The new one1INCH stablecoin will be collateralized by a combination of USDC and 1inch's native token.
Decentralized exchange aggregator 1inch has partnered with the ICHI platform to issue a new stablecoin pegged to the U.S. dollar.
In a Thursday announcement, 1inch said it planned to mint a stablecoin “with a blend” of its native 1INCH token and USD Coin (USDC) through ICHI’s Decentralized Monetary Authority, or DMA. The new one1INCH stablecoin — all issuers on ICHI begin with the prefix "one," referring to its Japanese namesake — is aimed at providing a medium of exchange to pay operating expenses, provide liquidity, and distribute liquidity rewards.
“The one1INCH stablecoin can grow into an economic game changer,” says 1inch co-founder Sergej Kunz. “At scale, its treasury can drive value back to 1inch DeFi operations because it is minted and over-collateralized with 1INCH tokens.”
Launched in May, ICHI’s DMA allows projects to create and govern their own fully-collateralized stablecoins — in this case, with 1inch’s native 1INCH token and USDC — which can be minted and redeemed for a set value of $1. The non-profit arm of 1inch, the 1inch Foundation, and ICHI will each contribute $100,000 in tokens as collateral for the stablecoins, allowing for the one1INCH tokens to be minted using 80% USDC and 20% 1INCH.
Related: Messari: USDC set to become ‘dominant’ stablecoin on Ethereum
ICHI’s DMA could lead to a rise in the number of U.S.-dollar pegged tokens as projects look for alternatives to traditional stablecoins. Tether (USDT) remains the largest stablecoin with a market capitalization of more than $62 billion, but other projects including Binance USD (BUSD), USDC, and Dai (DAI), have a sizable share of the market. Other U.S. dollar stablecoins include TerraUSD (UST), TrueUSD (TUSD), Paxos Standard (PAX), HUSD, Neutrino USD (USDN), and Gemini Dollar (GUSD).
