WIP-24 Grant 1500 WING to ICHI to develop oneWING, a stable coin backed by WING (For)

Co-written by Masanobu Fukuoka of ICHI.

Summary

ICHI is a family of stablecoins on the Ethereum blockchain. These stablecoins hold their value at $1 USD, are purely on-chain, and accrue an economic stimulus fund in each member community’s cryptocurrency.

Proposal

Grant 1500 WING to ICHI to develop oneWING, a stablecoin on Ethereum backed by pWING & USDC.

Conditional: If approved, the proposal will only go into effect if the ICHI community also approves 10k ICHI rewards for oneWING liquidity on SushiSwap/Uniswap.

Details

oneWING will be…

  • mintable on Ethereum with pWING and USDC.
  • available to trade on SushiSwap/Uniswap through incentivized trading pools.
  • available to lend/borrow on Wing’s Flash Pool.
  • ICHI’s 4th stablecoin after oneBTC, oneETH, and oneLINK.
  • just as stable as USDC and USDT.
  • 100% on-chain and transparent.
  • governed by oneWING holders.

Why is oneWING helpful?

Having the ability to mint oneWING with pWING is another utility for WING beyond governance, insurance, and lending/borrowing. pWING is WING wrapped from Ontology onto Ethereum through the Poly Network.

If you hold WING and want access to a stablecoin, minting oneWING is economically better for WING than lending out your WING and borrowing DAI, USDC, USDT, or sUSD. Additionally, oneWING can be listed on the Wing Flash Pool to divert stablecoin farmers into lending and borrowing oneWING instead of unrelated stablecoins. This increases the APY and WING APY for oneWING lending and borrowing, which increases the demand to lock up WING to mint oneWING. This makes stablecoin farming on Wing more synergistic and less parasitic.

What is oneWING?

oneWING, like the other ichi.farm stablecoins, is 100% on-chain, decentralized, and community governed while being just as stable as centralized stablecoins. It builds a community governed treasury of WING while holding a large collateral reserve of USDC to guarantee that you can redeem a oneWING for $1 of value. This is very different from the soft pegged approaches of other decentralized stablecoins that depend on algorithms or lending markets. Over time, the minting ratio (the percentage of USDC required to mint oneWING) will decline as oneWING becomes over-collateralized by the WING treasury.

How does oneWING work?

Users mint and redeem oneWING against their own pWING and USDC balances. No counterparty or any other trusted party is needed. Whoever wants to mint oneWING can interface directly with the Ethereum smart contract via command line, call the function on Etherscan, or use a polished UI like https://ichi.farm/#/mint. The maintenance of the PEG is done by interfacing with Uniswap V2 contracts on Uniswap or SushiSwap. Neither ICHI nor Wing intervenes in any of these processes.

Who is ICHI?

ICHI is a protocol and community that enables member cryptocurrency communities to mint and govern a fully-autonomous stablecoin designed to help them maximize their economic benefits. Since its successful launch a few weeks ago, ICHI has organically attracted almost $20m in funds for stablecoins designed for Bitcoin and Ethereum oneBTC, oneETH, and oneLINK.

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Voting will being on the counter proposal in ICHI’s community in about 24 hours: https://snapshot.page/#/ichi.eth/proposal/QmPGYXrUhvhd9kaHz725MfEXwXPB8qji7JpwuJrxmFDQphWe are looking forward to this launch and will be happy to answer any Qs. Best, Masa

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This is a exciting proposal on so many levels. :+1:t3::+1:t3::+1:t3:

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Welcome Masa, looking forward to seeing the engagement on the proposal from ICHI’s side as well as from ours.

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A WING version stable coin is very attractive.

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Good idea! Exciting long term view !

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I agree with to the proposal the idea would bring more people into the community

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Great idea, more useage the better.

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it’s a good idea to let it happen. I vote for

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  1. Very good in monetization approach;
  2. Stabilization in price and tvl; and
  3. Mitigate risks
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Very good idea. I vote for it.

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I have mixed feelings on this and have been brooding about the positives and negatives for some time. Will be interesting to see how the community votes.

This seems to be a really smart move. You have my vote!

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What would be some positives and negatives about this proposal ???

Curious to hear your concerns. I think that this is a generally positive idea, with the main potential downside being any technical risks associated with the product itself.

I’ve had multiple conversations with Ichi and I haven’t seen any red flags from their development team or their existing stablecoins.

That being said, there will always be risks associated with stablecoin minters, which is why there are also high rewards.

We would be happy to do an AMA, meet 1-on-1, or address these concerns in writing. Please let us know your preference.

Also, we wrote knew ELI5 docs this week. Read them here: https://docs.ichi.farm/