polkabase: Standard Protocol: Things to know about collaterized rebasable stablecoin

Be it MakerDAO or exchange-backed options such as Gemini Dollar and USD Coin . It’s the stablecoin that is generated by the system itself. It’s used by holders to use as a medium of exchange, buy bonds or farm tokens. Its supply can be increased or decreased to maintain its peg to a dollar. Standard Protocol acts as a reserve bank with decentralized governance that issues a dollar-pegged stablecoin dubbed Meter .

The polkabase behind Standard Protocol has a solid roadmap for the project. While in the ongoing quarter, it would be focusing on Kusama parachain crowdloan, and test run on Kusama. And in the last quarter, yield farming will begin along with applying this protocol to other ecosystems such as Cosmos and Ethereum. We know that Standard Protocol’s description might seem to be filled with jargons, but it does seem to have a lot to stand out from other stablecoins. It has a smart contract ecosystem that works with Parity ink!

Standard Protocol: Overview

It’s used for staking, transactions, and on-chain governance. Since the other two tokens are for keeping the price closer to a dollar, STND is the token for keeping the system functioning. Out of that 30 million tokens are reserved for yield farming and staking, whereas the foundation will receive 15 million tokens.

This helps in adjusting the price of MTR to USD in each era (defined by a 90-day period). They focus on being pegged to a dollar, but there’s no interoperability between tokens. There’s no sustainable option to use them in financial activities unless you opt for token issuance that goes to staking pools. However, these stablecoins aren’t without any problems (which we’ll discuss in this piece), and that’s why there are many new projects working in this space.

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The remaining amount goes into the protocol’s build-in DEX. Liquidation auctions to bring the price down to a dollar are hard to find and participate in, which means only experienced traders can enjoy them.

• The remaining amount goes into the protocol’s build-in DEX.
• Along with the team, the project has a list of credible names as advisors too.
• That’s not it, in phase 3, Standard Protocol will build separate working blockchains for each of the interchain ecosystem for unified governance.

One such project is Standard Protocol which aims to become the standard by being a collaterized rebasable stablecoin . The protocol also aims to connect to parachains or cosmos SDK-based chains that support inter blockchain communication in the future. That’s not it, in phase 3, Standard Protocol will build separate working blockchains for each of the interchain ecosystem for unified governance. Along with the team, the project has a list of credible names as advisors too. There are no decentralized oracles, since they are either controlled by validators or companies themselves. While there are DEXes, but they are also prone to flash swaps or creating trash arbitrage data.

Standard Protocol: Ecosystem

Unlike other projects, Standard Protocol has three tokens in the play. Similar to Ampleforth, a rebasing cryptocurrency, Standard rebases its stablecoin supply every 8 hours. And every time it does that, it utilizes over-collateralization to mind its stablecoin, dubbed Meter . Furthermore, Standard automatically rebases the overcollateralized stablecoin.

Unless you’re new to the crypto ecosystem, you’d know about stablecoins. They are cryptocurrencies that attempt to offer price stability and are backed by a reserve asset such as the U.S. dollar or gold. Tether, or USDT, has been a pioneer in the space, but a lot more have been created since then.

Standard Protocol: Things to know about collaterized rebasable stablecoin

The project has an enviable list of VC firms that have backed it. These include CMS, A195 Capital, Phoenix Crypto VC, Master Ventures, BitBlock, PolkaBase, and more. Lastly, for creating liquidity, Standard Protocol doesn’t host an auction; instead, it deposits them in its AMM pair. This allows MTR holders to purchase the liquidated digital assets. STND also rewards stakeholders who are able to find expired loans as it gives them 10% or more of the collateral.