28 June, 2023 – With the launch of IST Vaults, Inter Protocol, an emerging leader in the decentralized finance space, takes the next step in the evolution of the IST stable token. Vaults creates the ability to mint IST based on key interchain assets, starting at launch with ATOM.
IST Vaults, developed on Agoric’s JavaScript smart contract platform, empowers users to mint IST through the use of interchain assets. At launch, users will be able to mint IST by depositing ATOM as their collateral. Their ATOM can be reclaimed by returning the minted IST. Users also have the flexibility to modify their vaults at any time, within the collateral limits. While IST Vaults will only support ATOM at launch, the functionality is extensible and support for other assets will follow, as determined by the community.
IST stable tokens can be used for network fees on the Agoric chain and with a growing network of partners. Inter Protocol earns fees from Vault creation and from liquidation penalties.
“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.” said Dean Tribble, CEO of Agoric.
Vaults incorporates two key mechanisms that give IST a competitive edge in the stable token sphere. First, Vaults are designed with a hybrid collateralization structure; overcollateralized at inception, and subject to liquidation if the underlying asset experiences unfavorable volatility. In addition, Inter Protocol provides further support through a reserve fund, which steps in to enhance stability when overcollateralization falls short.
Second, Inter Protocol’s governance also utilizes a hybrid approach, balancing community-driven decision-making with the rapid response capabilities of an elected Economic Committee. This structure ensures that Inter Protocol can swiftly adapt to changing market conditions while maintaining an inclusive, decentralized approach to governance.
Zaki Manian, Director of Decentralized Cooperation Foundation (DCF), noted,
“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.”
Vaults is the latest addition to Inter Protocol’s application lineup, following the successful introduction of the Parity Stability Module (PSM), which allows users to mint ISTs in exchange for recognized stablecoins such as USDC, USDT, and DAI, at a 1-to-1 ratio.
Website: https://app.inter.trade/
Twitter: https://twitter.com/inter_protocol
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Contact Name: Bob Calabritto
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About Inter Protocol
Inter Protocol is a decentralized, community-driven project and the home of the IST stable token. The protocol is built on the Agoric L1, using their Hardened JavaScript smart contracting platform. The introduction of Vaults is the latest major feature release designed to empower users to create IST, contribute to the Agoric economy, and take part in the burgeoning interchain ecosystem. Learn more at https://app.inter.trade and on Twitter at @inter_protocol
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