ichi.farm
ichi.farm (ICHI) (Launched in 2020) is a Decentralized Autonomous Organization (DAO) that enables users to earn yield with any token using liquidity management strategies built on Uniswap V3.[1][2]
ICHI has a native token and is managed by a global community of DeFi investors and builders. The ICHI DAO is governed by the community of ICHI token stakers. Staked ICHI is represented by a separate token, called xICHI.[14]
On April 10, 2022, The ICHI governance token collapsed in value after cascading liquidations in the Rari Fuse Pool wiped out the pool's liquidity.[15]
About
ICHI.farm is a DAO that designs protocols that help other crypto projects to participate in DeFi more efficiently. ICHI’s core technology enables other crypto projects to create new, more sustainable liquidity programs called Vaults. ICHI works with leading DeFi projects including ShapeShift, Fuse, and 1INCH.[3]
Ichi. farm proposes the following plan:
- To mint stablecoins for every cryptocurrency community, each collateralized by their respective coin.
- To apply market forces to set the level of reserves backing the stablecoin between 0–100%. Capture excess reserves in each cryptocurrency.
- Fund adoption incentives with the excess crypto reserves through a community governance process.
Ichi. the farm will give the Bitcoin community, Ethereum community, and 8 other cryptocurrency communities a stablecoin and an excess reserve fund, governed by their respective communities and denominated in their respective coins.
ICHI creates products that allow a project to develop its stable asset (backed by its community’s token), and its liquidity programs that turn Total Value Locked into Protocol Owned Liquidity.[17]
Minting
Each ichi.farm stablecoin is a part of a system encompassing multiple coins:
ichi.farm Stable Coins: These are the stablecoins that can be minted by depositing $1 of value in two parts: part collateral, and part existing cryptocurrency.
Collateral coins: These are existing stablecoins. One can claim $1 worth of collateral reserves when redeeming an ichi stablecoin. At launch, USDC collateralizes the one ETH at a reserve rate of 100%. Subsequent stablecoins may be collateralized with ichi stable coins (ie, oneETH) or with USDC or DAI.[4]
Cryptocurrencies: These are typically scarce or fixed supply cryptocurrencies. When the stable coin's demand allows the reserve ratio to go beneath 100%, users will pay in the scarce cryptocurrency as part of minting an ichi. farm stablecoin. [5]
ichi Farms
In this farm, users are allowed to yield farm ICHI rewards with each new block based on staking ichiLP tokens they received from the pools, located at https://ichi.farm/farms
.Users enter into the farms of their choice and receive rewards in two parts:
- Regular Farming Rewards
When farming in an eligible pool, the users will receive a new distribution of ICHI with every block. At launch, there was 1 ICHI per block, divided by the proportional share of the pool.[6]
- Natural Farming Rewards
Additional distribution of 1 ICHI per block is given to farmers with winning ranks or farm workers who update farmer reward balances.
The regular farming APY calculation is based on the return in ETH to the daily USD value, based on the current block return annualized. The total APY includes natural farming rewards paid to farmers. It excludes payments to farm workers. [7]
It is not a fixed return, it is not a promised return, and it is not financial advice. It is based on ETH returns. [8]
Pool
ICHI pool enables liquidity providers to add their tokens to liquidity pools. Once they do so they receive one LP token (ichi. farm Liquidity Provider tokens). A user receives ICHI-ETH oneLP tokens when the user deposits $ICHI and $ETH into a pool.[9] One LP tokens represent a proportional share of the pooled assets, allowing a user to reclaim their funds at any point. [10]
Exchange
The ichi.farm exchange allows users to swap any ERC20 token into any other ERC20 token using automated liquidity pools.
The liquidity provided to the exchange comes from Liquidity Providers ("LPs") who stake their tokens in "Pools". In return, they get one LP (ichi.farm Liquidity Provider) tokens, which can also be staked in the "Farms". When users make a trade on the exchange they pay a 0.3% trade fee.[11]
0.25% of this trading fee is for the Liquidity Providers who provide liquidity for that pool and it is added to the pool balance.
The remaining portion of the trade fee paid goes to a pool called ICHIstake. The ICHIstake contract collects the fees from all the pools, and when the reward distribution command is called, it then sells all the fees turning them into ICHI (via ichi.farm exchange). [12] The new ICHI is divided up among the users together in the xICHI pool. When these users withdraw their xICHI it is worth more ICHI than when they put it into the pool. [13]
$ICHI Token
$ICHI is the governance token of the ICHI protocol, it is an ERC-20 on the Ethereum blockchain. It has a circulating supply of 4,983,927 ICHI coins and can be bought on the following exchanges.
Exchanges:
The ICHI DAO
The ICHI DAO is governed by the community of ICHI token stakers. Staked ICHI is represented by a separate token, called xICHI.
The xICHI token enables community ownership and active stewardship of the Protocol. xICHI holders govern the Protocol through an on-chain governance process.
ICHI holders can deploy their tokens to earn ICHI POWAH, a voting power to decide on proposals related to the DAO. [16]
