ShapeShift DAO Released Its First Token-Backed Stablecoin

Shapeshift DAO has just released its first token-backed stablecoin as it turned to the white-label ICHI stablecoin project as we are reading more today in our crypto news.

ShapeShift is joining seven other Defi projects as well and rolled out of the platform’s native “Branded dollar.” with a new partnership with the stablecoin platform ICHI, every oneFOX token will get pegged to the US dollar and backed by ShapeShift’s native FOX token and another popular stablecoin USD Coin. The oneTOKENS already exist for Uniswap, DODO, Perlin Network, Filecoin, 1Inch, Fuse network, and more.

Great news, #oneFOX, the stable coin powered by @ichifarm & ShapeShift #DAO, is officially live! ⛩x 🦊

ICHI Rewards begin in less than 14 hours, stake now to prepare🚀 🌝 https://t.co/Bj2fdmADda

— ShapeShift (@ShapeShift) November 13, 2021

Unlike traditional stablecoins like Tether’s USDT and USDC, oneTokens are controlled by the project that launches them. To mint the native stablecoin using ICHI, the community members have to supply one part native cryptocurrency and one part USDC with the ratio of the native asset to USDC varying from project to project. Perlin’s dollar for example has a minting ratio of 98% which means users need about $98 worth of USDC and $2 worth of PERL to mint one token. Filecoin is 95% and FOX token holders will get an 80% minting ratio.

Minting the native asset s beneficial for a project as Bryan Gross from ICHI said:

“Unlike both USDC/USDT and DAI, ICHI helps projects convert total locked value into actual assets under management.”

Instead of having to sell FOX tokens for a stable asset, the negatively affecting price action will lead to tokens being removed from circulation at the time of minting and this will increase the scarcity of FOX and boost its price.

ShapeShift DAO released its first token-backed stablecoin while back in July, it entered into a decentralized autonomous organization and airdropped FOX tokens to more than 900,000 users in order to boost governance participation. Before this change, Shapeshift was centralzied exchange that was founded in 2014 by Erik Vorhees. As a decentralized platform, the token holders will be responsible for voting on developments for the platform and not for a corporate entity. These same token holders today, will have access to a FOX-based stablecoin just for Shapeshift.

As recently reported, the noncustodial wallet and decentralized exchange aggregator ShapeShift announced another functionality for the FOX rewards token designed to mitigate the gas fees and the project will turn the token into a “Gas Guzzling Philanthropist of the DeFi Forest.”