RenVM and ICHI today announced 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, the team shared in a release with CryptoSlate.
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).
Bringing stablecoins to Dogecoin, Bitcoin, and others
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, in a statement.
He added, “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.”
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.
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RenVM and ICHI right now introduced a partnership to make decentralized stablecoins obtainable to the Bitcoin, Dogecoin, Zcash and different common cryptocurrency communities, together with Ren.
These communities will now be capable of mint and govern their very own stablecoin for dependable transactions, the workforce shared in a launch with CryptoSlate.
Stablecoins — cryptocurrencies designed to take care of a steady $1 worth — have skyrocketed in reputation in recent times. The present marketplace for stablecoins now exceeds $100 billion as merchants flip to USDC and Tether as a option to cut back publicity amid declines within the costs of Bitcoin, Ethereum and different cryptocurrencies.
But, these stablecoins really put the crypto economic system at higher danger by growing the severity of those market declines. It is because cryptocurrencies are offered to mint them and that promoting stress decreases the worth of those cryptocurrencies (very similar to promoting a inventory decreases the worth of that inventory).
Bringing stablecoins to Dogecoin, Bitcoin, and others
ICHI’s Decentralized Financial Authority (DMA) protocol solves this downside for the primary time by enabling any crypto neighborhood to create a stablecoin that’s backed by a mix of its personal native coin and fiat-backed stablecoins.
This will increase the demand for every neighborhood’s native coin and ensures worth stays locked locally. The brand new partnership introduced right now will allow ICHI to create a stablecoin for the favored cryptocurrencies — together with DOGE, BTC, and others — that RenVM is bringing to the Ethereum blockchain.
This may allow these cryptocurrencies to be utilized for a wide range of Decentralized Finance (DeFi) purposes throughout the blockchain ecosystem.
“This partnership is a key step in permitting the fluid motion of liquidity between any blockchain,” mentioned Michael Burgess, Ren COO, in a press release.
He added, “ICHI’s protocol creates worth for any stakeholder throughout the Bitcoin, Dogecoin, Digibyte or different crypto communities we assist by encouraging the adoption and use of those tokens and driving worth again to the neighborhood within the type of yield.”
This partnership follows the collaboration between ICHI, Ren, and ConsenSys to develop a stablecoin for Filecoin. Since launching in June, greater than $2 million in oneFIL stablecoins have been minted. ICHI has additionally efficiently launched in-house stablecoins for 1inch Community, Fuse Community, and Wing Finance.
Get an edge on the cryptoasset market
Entry extra crypto insights and context in each article as a paid member of CryptoSlate Edge.
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Value snapshots
Extra context
Be part of now for $19/month Discover all advantages
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