Ren Protocol works with ICHI to provide decentralized stablecoins for Bitcoin, Dogecoin, Zcash. provide
RenVM and ICHI at this time introduced a partnership to provide decentralized stablecoins for Bitcoin, Dogecoin, Zcash, and different fashionable crypto communities together with Ren.
The communities of the above cash will now have the opportunity to mint and handle their very own stablecoins for reliable transactions.
Stablecoins – cryptocurrencies designed to preserve a secure worth of $ 1 – have grown in reputation lately. The present market cap for stablecoins is $ 116 billion as merchants use them to cut back the chance of falling costs for Bitcoin, Ethereum and different cryptocurrencies.
Total capitalization of stablecoins | Source: Coinecko
However, these stablecoins additionally expose the crypto economic system to larger threat in bear markets. This is as a result of many stablecoins are minted from token collateral (as within the case of DAI). When the token price falls, the coin maker is compelled to promote the token to repay the debt or to be liquidated. So the extra stablecoins there are on the market, the larger the chance.
Bringing stablecoins to Dogecoin, Bitcoin and different altcoins
ICHI’s Decentralized Monetary Authority (DMA) protocol solves this drawback by permitting any crypto group to create a stablecoin backed by their very own native coin and fiat-backed stablecoins.
This will increase the demand for every group’s native cash and ensures that the worth stays locked throughout the group. The new partnership will enable ICHI to create a stablecoin for fashionable cryptocurrencies – together with Bitcoin, DOGE, and different altcoins – that RenVM brings to the Ethereum blockchain.
This permits these cryptocurrencies to be used for a number of DeFi purposes throughout the blockchain ecosystem.
Michael Burgess, Ren’s COO, mentioned in a press release:
“This partnership is an important step to enable a fluid movement of liquidity between each blockchain.”
“ICHI’s protocol creates worth for everybody concerned within the Bitcoin, Dogecoin, Digibyte or different crypto communities that we help by creating incentives for their adoption and use, and selling them by displaying worth within the type of Bring income again into the group. “
This partnership follows a partnership between ICHI, Ren and ConsenSys to develop a stablecoin for Filecoin. Since its launch in June, greater than $ 2 million has been minted in oneFIL stablecoins. ICHI has additionally efficiently launched inside stablecoins for 1inch Network, Fuse Network and Wing Finance.
According to Cryptoslate