TechFlow news — Agoric, a smart contract platform built on Cosmos, is launching Vaults, a minting application developed through Inter Protocol, as part of its ongoing platform expansion. Inter Protocol is a decentralized application on Agoric responsible for deploying Inter Stable Token (IST), the native stablecoin on the Cosmos network, at the application layer. Similar to MakerDAO's DAI, IST is a decentralized stablecoin pegged to the U.S. dollar.
Dean Tribble, CEO of Agoric, emphasized in a press release that Vaults will offer an alternative method for minting stablecoins, distinguishing decentralized tokens from fiat-backed ones. He stated, “A fully functional Vaults system enables holders of crypto collateral to leverage their assets and meet demand for IST, which in turn contributes to the Agoric economy through fees.”
Users can deposit price-stable assets such as USDC, USDT, and DAI into Vaults to mint IST at a 1:1 ratio. Additionally, ATOM holders may also use their holdings as collateral to mint IST. Currently, Vaults are overseen by a committee elected by the Agoric community. This committee evaluates and approves new collateral types and ensures IST maintains its dollar peg. In addition to the committee, IST is further supported and safeguarded by its own liquidation system and oracle infrastructure.
