The Shiba Inu stablecoin known as SHI will soon begin testing, SHIB project lead Shytoshi Kusama has announced.
In his bumper blog post that included information on the Shibarium Hackathon and the Shiba Inu Game narrative, Shytoshi gave an update on the stablecoin’s progress.
Coming amid scrutiny for stablecoins following the Luna crypto crash, SHI hopes to avoid the problems TerraUSD (UST) faces.
Shiba Inu Stablecoin SHI Is Almost Complete
Alongside the Shibarium Layer-2 and ShibFe (Shibarium Financial Ecosystem), Shytoshi said that the SHI stablecoin project is almost finished.
“I’m happy that this project is also nearing completion,” he said. “With it, SHIB holders will have an incredible stablecoin solution.
While Shytoshi did say the timeline for SHI’s release is still to be decided, he added it is “finishing development and going into testing soon.”
Shytoshi also hinted that SHI will be linked to ShibFe, but did not go into further details about their connection.
This extended period of development and testing may relieve some prospective SHI holders, who will hope the development team takes steps to ensure it avoids a similar situation to the TerraUSD depeg.
SHI Is An Algo-Stablecoin
When devising SHI, Ryoshi - the founder of Shiba Inu - described it as “an algo-stablecoin that always pegs to 1c.”
Ryoshi did not provide specific details about how SHI will maintain this $0.01 pricing. He did, however, offer suggestions regarding locked-up reserves and catcher coins. While it seems LEASH may be involved with backing SHI, this has not yet been confirmed.
However, since the TerraUSD depeg and subsequent market crash, some members of the ShibArmy are now hoping the SHI development can take note and develop to avoid the issues Terra faced.
Indeed, it seems this is already the case. In the Leash channel of the Discord, Shiba developer Eric M touched on learning more about stablecoins.
“I keep learning every day about it, and now we definitely have a scenario to study and analyze,” he said. “It explains a lot about how crypto works.”