Shiba Inu’s top Developer Kusama Shytoshi does not want the SHI stablecoin to suffer the same fate as TerraUSD (UST).
Following the de-peg of Terra algorithmic stablecoin, TerraUSD (UST), Shytoshi Kusama, Shiba Inu’s lead developer, has noted that the project is exercising caution towards the development of its stablecoin, SHI.
The Shiba Inu team has chosen to tread carefully in the development of SHI in order to avoid a repeat of the Terra ecosystem collapse, which saw billions of dollars wiped off the market.
He said: “Needless to say, Shi is a concern after watching other stable tokens collapse and billions in dollars get wiped off the market completely.”
Kusama acknowledged that several SHI proposals have been submitted by developers, adding that these proposals are designed in ways that would avoid those issues inherent in failed stablecoins.
“[These group of developers have] submitted a version of Shi that seems to avoid the issues found in other moonshots, while allowing Shi to be used to counter and balance payments that need to be done without market fluctuations,” Kusama said.
According to the SHIB’s lead developer, the project’s upcoming stablecoin will be an experimental project just like every other Shiba Inu initiative that has gone live in the past.
SHI’s Development Nears Completion
The team behind Shiba Inu has continuously teased its community about SHI stablecoin. As announced by Kusama in May 2022, SHI alongside three other components of Ryoshi’s vision, including Shibarium, and SHIBFE, is still being developed and will be completed this year.
“I refuse to give any hard dates at this time, but I expect to see one or multiple of these technologies before the end of summer or very early fall,” Kusama noted in a blog post published in May.
Unlike most stablecoins that are pegged to the value of $1, SHI is an algorithmic stablecoin pegged to the value of 1c. The stablecoin will function on both Ethereum and layer-2 blockchain Shibarium.
“The end goal is that SHI (operating both on ETH and the Shibarium) becomes a global stable currency that plebs across all countries are able to use as both a store of value and method of payment,” Shiba Inu’s pseudonymous founder Ryoshi noted.
SHI Developers Tread Carefully After UST Collapse
Although SHI was close to officially launching, the collapse of Terra’s UST signaled to the Shiba Inu team that there is a need to tread carefully to avoid building a stablecoin that may crash like TerraUSD. Kusama assured members of the SHIBArmy that more detailed information about SHI will be released later this year.