DEX aggregator 1inch to launch dollar-pegged stablecoin with ICHI
Decentralized exchange aggregator 1inch has partnered with the ICHI platform to issue a new stablecoin pegged to the U.S. dollar.
1inch announced that it planned to mint a stablecoin with a blend of its native 1INCH token and USDC through ICHI’s Decentralized Monetary Authority (DMA).
The new one1INCH stablecoin is aimed to be paid for operating expenses, provide liquidity, and distribute liquidity rewards.
“The one1INCH stablecoin can grow into an economic game changer,” says 1inch co-founder Sergej Kunz. “At scale, its treasury can drive value back to 1inch DeFi operations because it is minted and over-collateralized with 1INCH tokens.”
ICHI’s DMA, Launched in May, allows projects to create and govern their own fully collateralized stablecoins which can be minted and redeemed for a set value of $1.
1inch Foundation, the non-profit arm of 1INCH, along with ICHI, both are contributing $100,000 in tokens as collateral for the stablecoins, allowing for the one1INCH tokens to be minted using 80% USDC and 20% 1INCH.
ICHI’s DMA could lead to a rise in the number of U.S.-dollar pegged tokens as projects look for alternatives to traditional stablecoins.
Tether (USDT) is dominating the crypto market among the stablecoins by remaining the largest with a market capitalization of more than $62 billion, but however, other projects including Binance USD (BUSD), USDC, and Dai (DAI), also have a sizable share of the market.