ICHI, the stablecoin issuing platform, has launched a Decentralized Monetary Authority (DMA) that enables cryptocurrency networks to more easily mint their own stablecoins securely.
It has been reported that by utilizing ICHI’s DMA, cryptocurrency communities can create and govern their own fully collateralized stablecoins and set their value at exactly $1.
However, ICHI’s developers say that their platform solves the myriad of challenges associated with existing stablecoins, including the need to sell other cryptocurrencies to mint more tokens. This problem is akin to selling a stock, which simultaneously decreases the value of that stock.
Solana, Moonbeam, SushiSwap, #1inch, all have one thing in common. They are investing in the ICHI ecosystem. Let’s see why a Decentralized Monetary Authority is so potential. https://t.co/awxtNC0m4J — Cointelegraph (@Cointelegraph) May 28, 2021
The report said that ICHI’s platform seeks to provide the benefits of fiat-backed coins like USDC and USDT without such tradeoffs. Stablecoins issuers on ICHI are known as “oneTokens,” and are designed to be pegged to the US dollar and fully collateralized by a combination of fiat coins and the community’s native token.
The ICHI network is fully on-chain, which means anyone can verify the reserves and collateral pools at any given time. Projects that launch stablecoins or oneTokens can create a customized stablecoin contract, develop liquidity mining incentives and operate a community-controlled treasury.
Thus, ICHI steward Bryan Gross said:
“Our vision at ICHI is to help give people complete freedom over how they spend, invest, save and and otherwise use their money. ICHI is built to provide every crypto community with the tools they need to operate all aspects of a sustainable, scalable economy while keeping value locked in their own communities rather than transferring value out.”