Concepts and Definitions

ICHI terminology

Stablecoins

A coin designed to remain at $1 of value. You may mint stablecoins by depositing $1 of value in two parts: part collateral coins, part member coins. These are typically named oneX where X is the member coin. For example, oneBTC is Bitcoin's stablecoin and oneETH is Ethereum's stablecoin.

Liquidity Pools

ICHI leverages Uniswap and Sushiswap liquidity pools to maintain the price of stablecoins. Here is a resource that explains this concept: https://uniswap.org/docs/v2/core-concepts/pools/

Liquidity Farms

ICHI distributes rewards to liquidity providers who deposit to liquidity pools sponsored by ICHI.

Definitions

  1. Collateral: These are existing stable coins. You may claim $1 of collateral reserves when redeeming an ichi stable coin.

  2. Member Coins: These are scarce or fixed supply cryptocurrencies that have their own ICHI stablecoin.

  3. Community Treasury: A treasury of member coins for a specific stablecoin.

  4. Outstanding Stablecoins: Number of stablecoins currently in circulation.

  5. Reserve Ratio: The USD value of (Collateral + Treasury)/Outstanding. ICHI is designed to maintain a 100+% reserve ratio.

  6. Minting Ratio: The collateral ratio required to mint a stablecoin. For example, oneBTC at a 91% minting ratio would be minted with 91% USDC and 9% wBTC. The minting ratio goes up/down 0.2% every hour depending on whether the stablecoin's price is slightly below/above $1.

  7. Minimum Minting Ratio: This is the minimum minting ratio set by the stablecoin's governance. It starts at 90% for most ICHI stablecoins.

  8. Minting Fee: This is the fee that you pay to mint a stablecoin. It stays in collateral. For most ICHI stablecoins, this is set to 0%.

  9. Redemption Fee: This is the fee that you pay to redeem a stablecoin. It stays in collateral. For most ICHI stablecoins, this is set to 0.5% and will be lowered to 0% over time.

  10. Liquidity Pool: A liquidity pool is a collection of tokens in a smart contract to enable swapping of tokens.