ATOM holders can now mint stablecoin IST

Agoric, a blockchain network built on Cosmos, aims to empower developers in building DeFi applications using JavaScript. The Inter Protocol application, operating on the network, has launched its new minting application called Vaults.

Inter Protocol is a decentralized application on Agoric. It is an application layer that is responsible for implementing the Inter Stable Token (IST), a native stablecoin on the Cosmos network. 

Dean Tribble, CEO of Agoric, noted in a press release reviewed by Blockworks that Vaults will offer an alternative way to mint stablecoins “setting decentralized tokens apart from their fiat-backed equivalents.”

“Fully functioning Vault systems allows crypto collateral holders to leverage their assets and fulfill their demand for IST, which in turn contributes to the Agoric economy through fees,” Tribble said.

IST itself is similar to Maker DAO’s DAI — a decentralized stablecoin pegged to the US dollar. 

Blockworks Research analyst David Rodriguez said IST has the opportunity to become a premier decentralized stablecoin in the Cosmos ecosystem. 

“With the ability to mint IST using ATOM collateral, it reinforces the idea of ATOM as the reserve currency of the Interchain,” Rodriguez said.

With their initial application, the Parity Stability module, users could deposit price-stable assets such as USDC, USDT and DAI and mint IST at a 1-to-1 ratio. With Vaults, users are now able to mint IST with the ATOM token.

These assets will be used as collateral for IST, and users will be able to reclaim their deposits at any time in exchange for their minted IST. 

Vaults is currently overseen by a committee elected by the Agoric community. This committee is responsible for evaluating and approving new collateral and ensuring that IST remains pegged to the dollar. 

On top of the committee, IST also has its own liquidation system and oracle build.

IST’s decentralized oracle network consists of five experienced chainlink node operators and is managed by Simply Staking. Liquidation is triggered when the Vault’s collateral-to-debt ratio dips below the protocol’s preset safeguard.

Zaki Manian, the director of the Decentralized Cooperation Foundation (DCF), said these new components will continue to improve the scalability of IST. 

“The liquidation system and price oracle build on the foundations established with the Economic Committee and PSM operations,” Manian said.

Updated June 28, 2023 at 6:50 pm ET: Added information about the Parity Stability module.

---

Get the news in your inbox. Explore Blockworks newsletters:

• Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
• Empire: Start your morning with the top news and analysis to inform your day in crypto.
• Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
• 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
• Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
• The Drop: For crypto collectors and traders, covering apps, games, memes and more.
• Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.