1INCH stable coin is in the pipeline and will be collateralized with USDC or the native token of 1Inch.
1inch, in conjunction with the ICHI platform, is bringing forth another stable coin that will represent the dollar.
The announcement from 1inch was made on Thursday about the intention to create a stablecoin that will look like its token and USDC by partnering with ICHI. Apart from 1INCH, other assets created by ICHI starts its name with “one.” The reasons for creating the token mainly include the need to pay for running costs of the establishment, have some money for business and also share profits as at when due.
The possibility for establishments to create their own stable coin with ICHI began in May after the successful establishment of ICHI DMA. The process requires the use of collaterals and in 1inch’s case, the USDC and 1INCH token will be used. The 1INCH token will be minted at the value of $1 per coin and this will be supported by the contibutions from 1inch Foundation and ICHI. USDC and 1INCH tokens will be used in the ratio of 4:1 to mint the new stablecoin.
With the introduction of ICHI’s DMA, there is a possibility that the number of stable coins will multiply. Right now, USDT has the largest market cap to make it the biggest of them all. Nevertheless, there are other stablecoins in wide use and they include BUSD, USDC, and DAI. Others that are still tied to the dollar are Gemini Dollar, Paxos Standard, and TerraUSD.
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