Ren is bringing decentralized stablecoins to Dogecoin (DOGE) and others 🚨 This article is 3 years old...
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Ren is bringing decentralized stablecoins to Dogecoin (DOGE) and others
Stablecoins created using Bitcoin, Dogecoin, Digibyte, and others can now be used for reliable payments & DeFi transactions.
2 min read
Updated: Aug. 11, 2021 at 9:05 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
RenVM and ICHI today announced a partnership to make decentralized stablecoins available to the Bitcoin, Dogecoin, Zcash and other popular cryptocurrency communities, including Ren.
These communities will now be able to mint and govern their own stablecoin for reliable transactions, the team shared in a release with CryptoSlate.
Stablecoins — cryptocurrencies designed to maintain a stable $1 value — have skyrocketed in popularity in recent years. The current market for stablecoins now exceeds $100 billion as traders turn to USDC and Tether as a way to reduce exposure amid declines in the prices of Bitcoin, Ethereum and other cryptocurrencies.
Yet, these stablecoins actually put the crypto economy at greater risk by increasing the severity of these market declines. This is because cryptocurrencies are sold to mint them and that selling pressure decreases the value of these cryptocurrencies (much like selling a stock decreases the value of that stock).
Bringing stablecoins to Dogecoin, Bitcoin, and others
ICHI’s Decentralized Monetary Authority (DMA) protocol solves this problem for the first time by enabling any crypto community to create a stablecoin that is backed by a blend of its own native coin and fiat-backed stablecoins.
This increases the demand for each community’s native coin and ensures value remains locked in the community. The new partnership announced today will enable ICHI to create a stablecoin for the popular cryptocurrencies — including DOGE, BTC, and others — that RenVM is bringing to the Ethereum blockchain.
This will enable these cryptocurrencies to be utilized for a variety of Decentralized Finance (DeFi) applications across the blockchain ecosystem.
“This partnership is a key step in allowing the fluid movement of liquidity between any blockchain,” said Michael Burgess, Ren COO, in a statement.
He added, “ICHI’s protocol creates value for any stakeholder within the Bitcoin, Dogecoin, Digibyte or other crypto communities we support by encouraging the adoption and use of these tokens and driving value back to the community in the form of yield.”
This partnership follows the collaboration between ICHI, Ren, and ConsenSys to develop a stablecoin for Filecoin. Since launching in June, more than $2 million in oneFIL stablecoins have been minted. ICHI has also successfully launched in-house stablecoins for 1inch Network, Fuse Network, and Wing Finance.
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Dogecoin is a cryptocurrency created in December 2013 as a joke by software engineers Billy Markus and Jackson Palmer.