1inch Network to launch its own stablecoin

The DeFi project 1inch Network, in partnership with the ICHI platform, is launching a new internal-use stablecoin for the community — one1INCH. ForkLog has been informed of the development by project representatives.

“This stablecoin will provide a reliable form of payment for DeFi transactions and will allow us to offer better incentives and rewards for stakers and liquidity providers,” said 1inch Network.

Users will be able to use the new asset for:

• payments of operating expenses;
• providing liquidity;
• distribution of liquidity rewards.

The ICHI platform positions itself as the world’s first protocol for creating decentralised central banks that allow any DeFi community to issue a stablecoin based on their own tokens.

In the case of one1INCH, the coin will be minted using the project’s native token 1INCH and USDC.

As part of the launch, the 1inch Foundation will contribute $100,000 in 1INCH as collateral. This will enable issuing coins using 80% USDC and 20% 1INCH, whereas the typical ratio would be 95% and 5%, respectively.

“This will further boost demand for the tokens and preserve the value locked in 1INCH,” emphasised the 1inch Network.

The stablecoins issued through ICHI are always pegged at $1.

“We are pleased to collaborate with 1inch Network to launch the one1INCH token and give the project’s community full freedom in how to spend, invest, save, or otherwise use their money,” said an ICHI representative.

Earlier, 1inch Network launched a new protocol for limit orders and introduced an enhanced system for voting on protocol settings.

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