RenVM and ICHI in the present day introduced a partnership to make decentralized stablecoins obtainable to the Bitcoin, Dogecoin, Zcash and different fashionable cryptocurrency communities, together with Ren.
These communities will now have the ability to 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 secure $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 approach to scale back publicity amid declines within the costs of Bitcoin, Ethereum and different cryptocurrencies.
But, these stablecoins really put the crypto economic system at larger threat 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 like 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 drawback for the primary time by enabling any crypto group 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 group’s native coin and ensures worth stays locked in the neighborhood. The brand new partnership introduced in the present day 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) functions throughout the blockchain ecosystem.
“This partnership is a key step in permitting the fluid motion of liquidity between any blockchain,” stated Michael Burgess, Ren COO, in a press release.
He added, “ICHI’s protocol creates worth for any stakeholder inside 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 group 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.
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