ICHI, a stablecoin-as-a-service project, raises $3.5 million for DeFi expansion

ICHI lets DeFi tasks use their native tokens as collateral to mint its very very own dollar-pegged stablecoin. Now, the area of interest carrier has turned investors’ heads.

ICHI, a white-label stablecoin answer for DeFi projects, has just raised $3.5 million to continue its partnership drive.

Conducted by the ICHI Foundation, various firms together with Fundamental Labs, TRGC Limited, Lattice Capital, Lightshift Capita, and various others all participated in an ICHI token sale to elevate funds.

The capital raise will provide the stablecoin issuer with the crucial sources to proceed recruiting greater decentralized finance (DeFi) initiatives for its services.

The service is simple; as a substitute of promoting the native governance token in trade for stablecoins to behavior business or generate liquidity, ICHI gives the tooling to turn these native tokens into collateral for a stablecoin.

Called the ICHI oneToken, various high-quality DeFi projects are already involved.

There is, for instance, a oneUNI token for the Uniswap community, a oneFIL for the Filecoin community, and a oneFOX for the ShapeShift community.

Each of these oneTokens is worth $1 and redeemable at a 1:1 ratio with the market’s second-largest stablecoin, USD Coin (USDC).

Each token additionally has a unique minting ratio. The oneFOX token, for instance, is collateralized by 80% USDC and 20% FOX tokens, ShapeShift’s governance token. Conversely, the oneUNI token is collateralized via 98% USDC and 2% UNI tokens. These ratios and collateralizations are determined through ICHI’s governance mechanism.

There are currently 9 specific oneToken-branded bucks inside the ICHI ecosystem.

With new funding in hand, the goal is to add to this list.

“Stablecoins are foundational infrastructure for crypto and are experiencing parabolic growth. We assume this to proceed in the years beforehand as economic endeavor continues to pass on-chain,” a co-founder of Lattice Capital, Micahel Zajko, shared with Bitcoinsupport. “Token initiatives are rising as sovereign countries with their personal governance structures and missions to extend the value of the native asset. ICHI sits at the confluence of these two trends which positions it for vast boom in the years ahead.”

ICHI and decentralized stablecoins
One of the fundamental value propositions of ICHI is that it removes a project’s reliance on strictly centralized stablecoin vendors like USDC and Tether’s USDT.

Both of these initiatives have confronted criticism for both blacklisting certain addresses or a lack of transparency into how their tokens are collateralized. Each of these troubles flies in the face of crypto’s core tenets of censorship resistance and transparency.

Decentralized stablecoins such as Maker’s DAI, Terra’s UST, or even one of ICHI’s oneTokens, existing a possible alternative.

It’s a lot extra challenging to shut down or block transactions made in this variety of stablecoin, because the underlying collateral is a decentralized cryptocurrency (or at least a larger portion of the collateral is decentralized). Additionally, these stablecoins are not managed via a centralized entity, however by way of a collective of a range of token holders.

OneToken-branded stablecoins do, however, have a lengthy way to go before they are as plentiful as other, greater famous competitors. DAI and UST have market caps of $11.2 billion and $9.2 billion respectively, whilst the largest oneToken stablecoin, oneUNI, commands a market cap of just $11.2 million.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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