IST will be a stable token controlled by smart contracts on the Agoric blockchain but used primarily in decentralized finance applications on external chains.
In this initial launch, IST will be minted only by the Parity Stability Module (PSM) contract, which may have multiple instantiations. Each PSM is willing to trade IST for a single external stable token and vice versa. These external stable tokens are chosen by governance in the form of a vote of all BLD holders. Governance may elect to only allow one external stable token, in which case only one PSM will be instantiated.
The Parity Stability Module has two primary functions:
wantMinted - user gives PSM the accepted external stable token; PSM mints IST and gives it to the user
giveMinted - user gives IST back to the PSM, which is burned; PSM returns the external stable token
Once the user has received IST, he or she will transfer it to an external chain over the Inter Blockchain Communication (IBC) protocol.