RenVM and ICHI in the present day introduced a partnership to make decentralized stablecoins accessible to the Bitcoin, Dogecoin, Zcash and different well-liked cryptocurrency communities, together with Ren.
These communities will now be capable to mint and govern their very own stablecoin for dependable transactions, the staff shared in a launch with CryptoSlate.
Stablecoins — cryptocurrencies designed to take care of a secure $1 worth — have skyrocketed in recognition in recent times. The present marketplace for stablecoins now exceeds $100 billion as merchants flip to USDC and Tether as a option to scale back publicity amid declines within the costs of Bitcoin, Ethereum and different cryptocurrencies.
But, these stablecoins truly put the crypto financial system at larger threat by growing the severity of those market declines. It is because cryptocurrencies are offered to mint them and that promoting strain 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 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 locally. 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 can 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,” stated 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 help 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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