1INCH Network to launch its own stablecoin
1inch Network, a DeFi project, has partnered with the ICHI platform to launch a new native stablecoin for use within the platform – one1INCH, a dollar-pegged blend of 1INCH and USDC.
A dollar-backed stablecoin from 1INCH
“This stablecoin will provide a reliable form of payment for DeFi transactions and enable to offer better incentives and rewards to 1inch stakers and liquidity providers,” reads the official blogpost.
The new stablecoin can be used to:
- pay operating expenses;
- provide liquidity;
- distribute liquidity rewards.
The ICHI platform has positioned itself as the world’s first protocol for creating decentralised money-lending services that enable DeFi communities to issue stablecoins based on their proprietary tokens.
one1INCH will be minted using the platform’s native 1INCH and Centre’s USD Coin (USDC).
As part of the launch, 1inch Foundation will put down $100,000 (~£725,800) worth of 1INCH as a collateral. This will allow issuing coins with 80% USDC and 20% 1INCH as collateral, whereas normally the proportion would be 95% to 5% respectively.
This will lead to “further increasing the demand for and keeping the value locked in 1INCH tokens,” says 1inch Network.
The stablecoins issued through ICHI will always be worth exactly $1.
“Our vision at ICHI is to help give people complete freedom over how they spend, invest, save and otherwise use their money,” ICHI representatives have pointed out.
Earlier in June, 1inch Network launched a new limit order protocol and improved upon its governance and voting system. The project is making serious progress in the crypto and DeFi space. This stablecoin serves to further cement 1INCH’s position as a leading crypto.
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