The Win-Win Design of oneTokens

oneTokens provide the hard peg of centralized stablecoins without sacrificing on decentralization.

oneTokens keep their value at $1, are purely on-chain, and accrue a community treasury in each oneToken's cryptocurrency.

Table 1: Feature Comparison by Category of Stablecoin

Feature

Algorithmic

Fiat Backed

Crypto Backed

ICHI Stablecoins

Mint for Exactly $1

No

Yes

No

Yes

Redeem for Exactly $1

No

Yes

No

Yes

100% On-Chain Reserves

Yes

No

Yes

Yes

Community Treasury

No

No

No

Yes

Liquidation Risk

No

No

Yes

No

ICHI is a community run project that is governed by community voting.

FAQ

1.How is it possible to mint a new ICHI stablecoin for $1 of value?

Decentralized oracles (live price feeds provided by networks of computers) determine the price of two assets in US dollars: USDC (a stablecoin issued by regulated financial institutions, backed by fully reserved assets, and redeemable on a 1:1 basis for US dollars) and the member coin. You mint a new stablecoin by paying exactly 1 US dollar in two parts (part USDC and part member coin) as calculated by these oracles.

2. How is it possible to redeem an ICHI stablecoin for $1 of value?

You redeem a stablecoin for exactly 1 US dollar of USDC, less a redemption fee. The price of USDC in US dollars is provided by decentralized oracles.

3. What does 100% on-chain mean?

You can see the USDC collateral and the coins paid to mint on the Ethereum blockchain as well as the entire transaction history of minting, redeeming, and any treasury actions. If the coins or USDC are used by the coin's community to create DeFi (decentralized finance positions), you can see these transactions and positions in the corresponding smart contracts.

4. What is the community treasury?

You pay in member coins to mint a coin's stablecoin. These coins remain in a community treasury because you only get back USDC when you redeem the coin's stablecoins. The coin's community decides what to do with this treasury by voting with the stablecoin itself. A common action may include selling part of the community treasury to buy more USDC and deposit it back into the stablecoin's USDC collateral.

5. What is over-collateralization? How does it become over-collateralized?

There are two types of reserves backing an ICHI stablecoin: the USDC collateral and the coin's community treasury. Each of these reserve assets are visible on-chain. The stablecoin is 'over-collateralized' when the dollar amount of the sum of the USDC collateral and the community treasury is more than the number of circulating stablecoins. The possible drivers of over-collateralization may include the following:

  • Minting and/or redemption fees stay in USDC reserves.

  • Coins paid to mint are not paid back when you redeem and may grow in value.

  • Anyone can send coins into the community treasury.

  • Anyone can send USDC into the USDC reserves, including the community treasury.

  • USDC reserves and/or coins may be invested in yield-bearing DeFi positions by its community.

  • The stablecoin may be minted with a yield bearing coin.

This is not an exhaustive list and the implementation of some (or all) of these drivers is determined by coin's community.