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Replies to post #15958 on Shiba Inu Token (SHIBUSD)
12/11/21 8:13 PM
12/12/21 11:28 AM
No longer just a memecoin, the Shiba Inu ecosystem continues to expand into new areas, with a SHI stablecoin potentially being one of the upcoming SHIB products.
Shiba Inu founder Ryoshi first mentioned SHI in a May 2021 blog post. SHI sits alongside the Shibarium Layer 2 and Oshiverse NFT game on the list of decentralised offerings in Ryoshi’s vision.
Here’s what a SHI stablecoin could look like.
What is SHI Stablecoin?
In their blog post, Ryoshi describes SHI as “an algo-stable coin that always pegs to 1c”. Alternatively, he describes it as “the global exchange of value for plebs”.
According to Ryoshi, the end goal is for SHI to become a “global stable currency that plebs across all countries are able to use as both a store of value and method of payment”.
Stablecoins ‘peg’ themselves to a more stable asset, often a fiat currency such as the US Dollar. This allows them to make use of the benefits of cryptocurrency while reducing the volatility associated with it.
For SHI, it would be pegged to $0.01, acting as a more stable store of value for the Shibarium blockchain. Shiba Inu’s volunteer project lead, Shytoshi Kusama, explained the necessity of this in a blog post. “This is especially important when dealing with businesses that have invoices that get paid 30 days out, or when dealing with transactions aren’t instantly settleable (credit cards),” they said.
To maintain their price stability, stablecoins often hold reserves - or collateral. However, Ryoshi did not lay out a specific idea for how SHI will manage its stability, instead touting various methods.
The first would see SHI lock up reserves to “to mint SHI that always pushes it back to 1c”.
Alternatively, Ryoshi also suggested a partially-backed (fractional-reserve) stablecoin. This would feature a “‘catcher coin’ to absorb the fluctuations in value to help maintain the peg”.
“Which way is better or is there another way, I am not sure,” Ryoshi said. “Whatever it is, it needs to be built with care not to rely on 3rd party oracles, they need to be built to be fully contained, perpetual and autonomous.”
SHI Stablecoin Release Date
Ryoshi did not give a release date for SHI, nor did they create a roadmap for the wider Shiba ecosystem. Indeed, Ryoshi emphasised the need for this to demonstrate the decentralised nature of SHIB.
“With Shiba, we have from the beginning made very clear that no-one is in charge. There is no man accountable, no person responsible, and no entity has the keys to the kingdom,” they said. “The end result of this is that you are responsible.”
We’ll keep this page updated when any more news about SHI comes out.
AI
