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𝙎𝙏𝘼𝙉𝘿𝘼𝙍𝘿 (anything but)
The stable coin industry has seen massive growth from $6B-$54B b/w march 20-march 21 and is set to continue this trend.
Standard protocol is the first ‘collateralized rebaseable stable coin (CRS) for digital asset standard.
The stable coin industry has seen massive growth from $6B-$54B b/w march 20-march 21 and is set to continue this trend.
Standard protocol is the first ‘collateralized rebaseable stable coin (CRS) for digital asset standard.
This new concept is the brainchild of founder and CTO Hyungsuk Kang, who after working for Terra (stable coin in the cosmos ecosystem) noticed flaws in both premining and the price volatility in other algo stable coins.
Not only does Standard deliver collateralized digital assets it is also INTEROPERABLE and developed on SUBSTRATE. Think of it as an omni stable coin protocol across different blockchains as a form of smart contracts in each network.
WHAT IS STANDARD? WHAT PROBLEM(S) DOES IT SOLVE?
The stable coin (Meter) is collateralized to an index of digital assets within its vault. As the price of these assets increase so does the price of Meter. This results in an increase to the supply of Meter to maintain the $1 peg.
The stable coin (Meter) is collateralized to an index of digital assets within its vault. As the price of these assets increase so does the price of Meter. This results in an increase to the supply of Meter to maintain the $1 peg.
When the price of these digital assets (e.g stocks) decreases, Meter price also decreases and now the vault issues bonds to remove Meter from the circulating supply. This increases demand and stabilises the price back to $1.
3 PROBLEMS WITH CURRENT ALGO STABLE COINS.
1) PRICE INSTABILITY
- due to assets NOT being collateralized
- lack of sustainable interoperability use cases.
1) PRICE INSTABILITY
- due to assets NOT being collateralized
- lack of sustainable interoperability use cases.
2) ORACLES
- are too centralised, without an incentivised ecosystem to
reward them.
3) LIQUIDATION AUCTIONS
- difficult to track and again centralised, suffer from barriers
to entry which leads to elitism.
- are too centralised, without an incentivised ecosystem to
reward them.
3) LIQUIDATION AUCTIONS
- difficult to track and again centralised, suffer from barriers
to entry which leads to elitism.
STANDARD BRINGS THE SOLUTIONS.
1) COLLATERALIZED and ELASTIC.
- Leverages both the characteristics of DAI & AMPL.
- Rebase occurs every 8 hours to achieve price stability with
seasons equal to 90 day periods or 270 rebases.
1) COLLATERALIZED and ELASTIC.
- Leverages both the characteristics of DAI & AMPL.
- Rebase occurs every 8 hours to achieve price stability with
seasons equal to 90 day periods or 270 rebases.
2)FAIR BLOCK REWARDS
- To oracle providers with a 8:2 ratio b/w validators and
providers achieved via substrate technology.
3) CURATED AMM’s
- where liquidated collateral creates arbitrage
opportunities.
- To oracle providers with a 8:2 ratio b/w validators and
providers achieved via substrate technology.
3) CURATED AMM’s
- where liquidated collateral creates arbitrage
opportunities.
STANDARD’s 3 TOKEN SYSTEM EXPLAINED.
1) METER (MTR)
- 1:1 stable coin, aspiring to be the most used crypto in the polkadot ecosystem.
- synthetically generated.
- 3 benefits for Meter holders
1) METER (MTR)
- 1:1 stable coin, aspiring to be the most used crypto in the polkadot ecosystem.
- synthetically generated.
- 3 benefits for Meter holders
a. Can be used as a medium of exchange
b. Can be used to buy bonds.
c. Can be used to farm tokens in the Standard system.
- Transactions are fast, cheap and accessible worldwide.
b. Can be used to buy bonds.
c. Can be used to farm tokens in the Standard system.
- Transactions are fast, cheap and accessible worldwide.
2. LITER (LTR)
⁃LP token - a share from the AMM module
⁃Can be burned in the AMM for deposited assets (like LP tokens in Uniswsap).
⁃Can be used in yield farming.
⁃LP token - a share from the AMM module
⁃Can be burned in the AMM for deposited assets (like LP tokens in Uniswsap).
⁃Can be used in yield farming.
3.STANDARD (STND)
- Governance token
- holders can stake for block rewards and participate in on-chain governance.
- Token can be used as a transaction fee.
- Governance token
- holders can stake for block rewards and participate in on-chain governance.
- Token can be used as a transaction fee.
HOW DO YOU USE STANDARD PROTOCOL?
IN BULLISH CONDITIONS
http://1.MTR is generated by collateralizing other digital assets and this MTR can be used to purchase more collateral, typically DOT which allows leverage trading to maximise profits with ones existing assets.
IN BULLISH CONDITIONS
http://1.MTR is generated by collateralizing other digital assets and this MTR can be used to purchase more collateral, typically DOT which allows leverage trading to maximise profits with ones existing assets.
http://2.MTR holders can alternatively generate synthetic assets from oracles such as virtual stocks and commodities.
IN BEARISH CONDITIONS
⁃MTR holders can still profit by purchasing other digital assets from liquidation
⁃MTR holders can still profit by purchasing other digital assets from liquidation
⁃These assets can then be sold on other DEXes/CEXes and are cheaper for MTR holders as liquidations from expired vaults present discounted digital assets.
WHAT ABOUT ADOPTION YOU SAY?
Standard currently have a collaboration with the private bank ‘Ginko’ who are officially licensed by the Korean government to experiment with crypto in terms of banking cryptocurrency and trading it with fiat assets.
Standard currently have a collaboration with the private bank ‘Ginko’ who are officially licensed by the Korean government to experiment with crypto in terms of banking cryptocurrency and trading it with fiat assets.
Standard aim to build a bridge b/w fiat (KRW) and the stable coin MTR.
Other collaborations to boost real world adoption are in talks currently.
CONCLUSION : WHY I’M SO BULLISH ON STANDARD
⁃First movers advantage in CRS
Other collaborations to boost real world adoption are in talks currently.
CONCLUSION : WHY I’M SO BULLISH ON STANDARD
⁃First movers advantage in CRS
⁃Quality and dedicated team with high level experience from Plasm, Terra and PolkaKR
⁃Top notch advisors involved with PolkaBase, Bizantyne capital and Blocksync Ventures.
⁃Backed by industry heavyweight VC’s including 4SV, AU21 Capital, A195 Capital and Master Ventures.
⁃Top notch advisors involved with PolkaBase, Bizantyne capital and Blocksync Ventures.
⁃Backed by industry heavyweight VC’s including 4SV, AU21 Capital, A195 Capital and Master Ventures.
⁃Will be vowing for a parachain on both Kusama and Polkadot
⁃Have a web-3 grant
⁃Member of the polkadot defi alliance where the best in the east meet the best in the west.
⁃Fair tokenomics with real use case for their tokens.
⁃Have a web-3 grant
⁃Member of the polkadot defi alliance where the best in the east meet the best in the west.
⁃Fair tokenomics with real use case for their tokens.
⁃Well structured roadmap ahead.
⁃Looking to implement collateralized NFT’s from prominent projects in the future.
⁃Looking to implement collateralized NFT’s from prominent projects in the future.
Imo Standard could be that ‘GAME CHANGER’ the crypto-sphere needs to evolve and move forward. In years to come I believe Standard could potentially be looked upon as the catalyst for being the ‘GOLD STANDARD’ in the algo stable coin ecosystem via its several use cases.
