According to a blog post by Shytoshi Kusama, the lead developer of Shiba Inu, a group of independent developers in the decentralized network has been working on a stablecoin “SHI” which is set to be unveiled before December 31 if all goes as planned.
In the latest correspondence, the pundit stated that they were aware of the concerns after watching other stablecoins collapsing and billions of dollars getting wiped off the market. To avoid this, the developers were working on an experimental protocol of SHI in a bid to seal the loopholes that could place the said stablecoin at risk.
In May, the crypto market was sent into a spin after Terra’s stablecoin TerraUSD and its sister coin LUNA imploded, sending over $44 billion worth of crypto assets down the drain. The event, which was triggered by huge withdrawals of TerraUSD cast serious doubts over the “stability” of stablecoins, leading to a severe deleveraging event for the DeFi lending ecosystem and a widespread call for regulations.
Kusama noted that the team was dedicated to ensuring that SHI would be “used to counter and balance payments that need to be done without market fluctuations.” However, the pundit failed to shed more light on the project, noting that “a more detailed and complex set of information will be released about this token as it is finalized.”
Kusama also hinted at introducing TREAT, a new reward token for SHIB’s metaverse. The token, which has been quietly in design will be used to derive rewards for the Metaverse and “help provide balance to” Shiba Inu’s stablecoin. A limited supply of TREAT would also be reserved for the project’s most loyal members, the blog stated.
Launched in August 2020, Shiba Inu is so far the world’s second-largest meme cryptocurrency after DOGE with a $6 billion Market Cap. The Shib ecosystem features a decentralized exchange Shiba Swap and two ecosystem tokens namely BONE and LEASH.
Shiba Inu developers have been working towards expanding the ecosystem through the introduction of Shibarium, a layer 2 protocol that will support the deployment of other native decentralized applications. The team has also been developing a metaverse for the ecosystem which will be supported by the said stablecoin.
Meanwhile, the Shiba Inu’s “SHIB” token continued to display strength in the wake of the news and has been trading in a tight range for the past three days. Despite suffering a painful beatdown in the past half, the token has risen by over 45% in the last three weeks with more investors accumulating the token amid speculations of the Shibarium protocol.