Emerging DeFi service provider Inter Protocol has just announced the launch of Inter Protocol Vaults which, according to a statement from the project, takes the next steps in making IST usable in every corner of the Cosmos market.
Inter Protocol Vaults extends functionality beyond the existing Parity Stability Module (PSM) which already allows users to swap stable coins for IST tokens. Inter Protocol Vaults allows IST to be minted by offering interchain assets as collateral. Currently, ATOM is enabled, with future support for assets being decided by the community.
Inter Protocol Vaults: Empowering the Agoric & Interchain Ecosystems
Inter Protocol Vaults help to unlock the nearly unlimited potential of the Agoric ecosystem and the interchain. As a mode of payment for network fees on the Agoric network, IST tokens are integral to the system – and by unlocking interchain assets, the potential to scale is realized in full.
Inter Protocol Vaults work in unique ways – by introducing a hybrid collateralization structure, where there is both overcollateralization at the point of minting, and there is also a reserve that can be tapped into in the event that liquidation of the collateralized asset is not sufficient to adjust for volatility. The outcome is that IST becomes more resilient to the market shocks we have seen in this space.
The Inter Protocol Parity Stability Module (PSM) allows arbitrage between other stablecoins, such as USDT, USDC and DAI, and IST by enabling trading at a fixed 1:1 exchange rate, incentivizing the community to keep IST at parity with those stablecoins.
IST is the stable token that the interchain economy requires: a native, extensible stable token backed by fiat, interchain digital assets such as ATOM, and future mechanisms as the economy enlvoles. Inter Protocol Vaults provide crypto asset holders a unique solution to generate liquidity while preserving their underlying asset position. I am excited about what Vaults does for IST, driving it forward to be the stable token of choice within the interchain economy.
Dean Tribble, Agoric’s CEO said in a recent press release
The IST governance model also allows for enhanced stability – Marrying the benefits of stakeholder-driven decisions allowed by involving the community with the speed and expertise of an elected economic committee.
IST & the Future
Zaki Manian, the Director of Decentralized Cooperation Foundation (DCF) is also excited about the potential of IST in light of the new Vaults feature, saying in a recent press release:
“The introduction of Vaults brings a host of new elements to Inter Protocol that enhance the scalability of IST. The integrated liquidation system and price oracle reinforce the groundwork laid by the Economic Committee and the previously launched PSM.”
The extensibility of the Vaults feature, combined with the growing demand for cross-chain stable assets in Cosmos, sets the stage for a bright future for IST. Stay tuned to socials for more info on IST, Vaults, and Inter Protocol!
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