The thing about stablecoins is that they don’t always deliver on the stability promise. That’s because it’s just not as simple as it sounds. Every first-generation attempt has its flaws whether depending on fiat pegs or algorithmic balancing — but pioneers are there to be learned from, and give a leg-up to future success.
The time is right for a solution taking the best of what has worked across the asset class, and that’s the reason we’re excited about the Standard protocol -the first and only project from Korea to be awarded a Polkadot Web3 foundation grant.
A new approach to the tokenomics of stability brings us a collateralized, rebaseable stablecoin with an elastic supply, offering fair block rewards through automated market makers instead of auctions. This creates arbitrage opportunities as well as agility, because in addition to stability you need a permissionless liquid market to be accessible. Operating in the Polkadot ecosystem, the Standard protocol is a whole new paradigm for synthetic assets, introducing collateralization on top of the pure algorithm to aggregate liquidity and stability.
Furthermore, the Standard protocol enables the leveraged trading of virtual commodities and stocks, which are backed by oracle-minted synthetic assets. So this is very exciting, even for traders not yet in the DeFi world, and promises an effective on-ramp for new participants which will expand and develop the space (and its marketcap) even further.
Elegant 3-token interplay
The intelligent and experienced team behind Standard have created a sophisticated 3-token protocol, to address the complex tensions between the different needs of the stablecoin ecosystem:
Meter (MTR) is the medium of exchange and is generated by collateralizing digital assets. MTR can be used to purchase liquidated assets at a discounted price via Standard’s curated automated market makers (AMMs) which create decentralized and fair arbitrage opportunities. Meanwhile, there’s a liquidity token called Liter (LTR) that represents a share of the AMM module and rewards holders for providing liquidity. Finally, the underlying Standard (STND) token provides on-chain governance and can be used to pay fees, stake (validate transactions) for rewards, and participate in making key decisions such as changing the collateralization ratio.
The interactions of these elements create a total supply defined by oracle pricing, continually adjusted to maintain the stable USD peg, on a rebaseable and elastic basis. The unique curated liquidation process of the automated market maker algorithm means it is robust and effective, whatever happens to external market conditions.
A source of truth
This role of oracles is very important, for stable assets bridging the gap between the DeFi ecosystem and the physical world. So the protocol rewards oracle providers directly, with 20% of the total block rewards (validators get the 80%). Oracles are carefully selected, and rewarded for accuracy in each era — iterating toward perfect truth on a continuous basis.
The protocol design on Substrate is created to consistently distribute rewards in this way, so oracles can be used to generate synthetic assets from the MTR token (which can also be used to collateralize other digital assets, which can be traded on any exchange).
IDO on Polkastarter on April 29th 2021
Following rigorous testing and development and initial private funding rounds of $3.25m, the Standard team is right on track with their roadmap to throw open the doors.
To support fast, open, and fair trading, they’re going for an Initial DEX Offering on Polkastarter — so you can invest in STND tokens and access immediate marketplace liquidity with no exchange fees. Founder and CEO Hyungsuk Kang is the Head Ambassador for East Asia of Polkadot, Co-founder of PolkaKR, so this is a natural choice for the Standard IDO.
But it is also a fair and democratic pathway to the next stage of fundraising, exemplifying the democratic governance potential of the STND token, and enabling smart investors from anywhere to get a piece of the action.
So, you need to hurry and get whitelisted through their unique challenge or lottery processes asap, because this one is going to be hot. You get a chance to engage creatively by sharing memes and social interactions, and you only get one shot at the whitelisting — so make it count! You’ll see from the #standarddefi tag that this is a sale built around real community, but it’s a welcoming and friendly one, that will even help you with the quiz questions if you ask nicely.
This investment will not only reward loyal backers, it will enable the project to grow and fulfil its ambitious plans for growth.
So don’t get fooled by any scams from 3rd party marketers, the ONLY way to get your STND tokens is by being part of this fair and democratic process, which has recently been expanded by the team to maximize opportunity for all.
Telegram chat: https://t.me/standard_protocol
Telegram announcements: https://t.me/standardprotocol