New Decentralized Stablecoins for Bitcoin, Dogecoin & Other Cryptocurrencies Enabled Through RenVM & ICHI Partnership
Existing Stablecoins such as USDC & Tether Remove Value from Popular Cryptocurrencies & Put the Crypto Economy at Risk
Stablecoins Created Using Bitcoin, Dogecoin, Digibyte & Others Can Now Be used for Reliable Payments & DeFi Transactions
ICHI Previously Launched Stablecoins for Filecoin, 1inch Network & Others
NEW YORK (August 10th, 2021) — RenVM and ICHI announce a partnership to make decentralized stablecoins available to the Bitcoin, Dogecoin, Zcash and other popular cryptocurrency communities, including Ren. These communities will now be able to mint and govern their own stablecoin for reliable transactions, finally completing Satoshi’s vision of a peer-to-peer electronic cash system.
Stablecoins — cryptocurrencies designed to maintain a stable $1 value — have skyrocketed in popularity in recent years. The current market for stablecoins now exceeds $100 billion as traders turn to USDC and Tether as a way to reduce exposure amid declines in the prices of Bitcoin, Ethereum and other cryptocurrencies. Yet, these stablecoins actually put the crypto economy at greater risk by increasing the severity of these market declines. This is because cryptocurrencies are sold to mint them and that selling pressure decreases the value of these cryptocurrencies (much like selling a stock decreases the value of that stock).
ICHI’s Decentralized Monetary Authority (DMA) protocol solves this problem for the first time by enabling any crypto community to create a stablecoin that is backed by a blend of its own native coin and fiat-backed stablecoins. This increases the demand for each community’s native coin and ensures value remains locked in the community. The new partnership announced today will enable ICHI to create a stablecoin for the popular cryptocurrencies — including DOGE, BTC and others — that RenVM is bringing to the Ethereum blockchain. This will enable these cryptocurrencies to be utilized for a variety of Decentralized Finance (DeFi) applications across the blockchain ecosystem.
“This partnership is a key step in allowing the fluid movement of liquidity between any blockchain,” said Michael Burgess, Ren COO. “ICHI’s protocol creates value for any stakeholder within the Bitcoin, Dogecoin, Digibyte or other crypto communities we support by encouraging the adoption and use of these tokens and driving value back to the community in the form of yield.”
“Stablecoins — for all the utility they provide in enabling reliable transactions — compete with other cryptocurrencies and drain value from projects,” said Bryan Gross, ICHI steward. “Until every community has complete control over its own money, Satoshi Nakamoto’s vision of a ‘purely peer-to-peer electronic cash system’ will not be realized. We are thrilled to partner with Ren to provide communities with autonomy over how to spend, invest, save and and otherwise use their money to encourage the scalable and sustainable growth of DeFi.”
In addition to enabling any crypto project to create an in-house stablecoin, ICHI’s protocol, which is fully audited by Quantstamp, provides every crypto community with the tools needed to operate their own 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.
This partnership follows the collaboration between ICHI, Ren and ConsenSys to develop a stablecoin for Filecoin. Since launching in June, more than $2 million in oneFIL stablecoins have been minted. ICHI has also successfully launched in-house stablecoins for 1inch Network, Fuse Network, and Wing Finance.
To learn more and read ICHI’s whitepaper, visit docs.ichi.farm.
About Ren
Ren is an open protocol that enables the movement of value between blockchains.
Website | Announcements | Twitter | Reddit | Github
About ICHI
ICHI unlocks the full potential of the crypto economy by enabling any cryptocurrency project to create and control its own stablecoin worth exactly $1 USD. Learn more by visiting the ICHI website, Medium, Twitter, or Telegram. If you’re a developer visit ICHI docs or join Discord.
