Lead developer of Shiba Inu Shytoshi Kusama has noted that the project is exercising caution with the development of its stablecoin, SHI, following the de-peg of Terra algorithmic stablecoin, TerraUSD (UST).
To prevent a repeat of the Terra ecosystem collapse, which resulted in the wiping out of billions of dollars from the market, the Shiba Inu team has decided to proceed cautiously with the development of SHI.
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 developers have put forth several SHI proposals, noting that these proposals have been created to avoid the problems that plagued unsuccessful 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.
The upcoming stablecoin for the SHIB project will be an experimental project, just like every other Shiba Inu initiative that has gone live in the past, according to the project’s lead developer.
SHI’s Development Almost Complete
The Shiba Inu team has continuously made fun of SHI stablecoin in front of its community. SHI and three other elements of Ryoshi’s vision, including Shibarium and SHIBFE, are still being developed and will be finished this year, as Kusama stated in May 2022.
“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.
SHI is an algorithmic stablecoin pegged to the value of 1c as opposed to the majority of stablecoins pegged to the value of $1. Both layer-2 blockchain Shibarium and Ethereum will support the stablecoin’s functionality.
“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 Exercise Caution Following UST Collapse
The collapse of Terra’s UST warned the Shiba Inu team to proceed cautiously to avoid creating a stablecoin that might crash like TerraUSD, even though SHI was just about to go live. However, Kusama assured the SHIBArmy members that more thorough details about SHI would be made public later this year.