Standard Protocol is the first Collateralized Rebasable Stablecoin (CRS) protocol for synthetic assets. It introduces a new paradigm for liquidity aggregation. In contrast to the previous generation of algorithmic stablecoins, Standard rebases its stablecoin supply in each era. It will act as the catalyst for the finacial activities of other parachains, to enable leveraged trading and arbitrage via a built-in AMM. it will also include a protocol for synthetic asset markets by way of decentralized oracle.
Stablecoins are either over-collaterized, fiat backed, or algorithmic to secure its volatility. However, each of their examples were not able to decentralize their operations and often rely on centralized protocol reserves to the organization with central authority. On the other hand, Standard only provides unit of an account with smart contracts, providing full sovereignty with equal set of rules.
This enables users to:
Have full control over its monetary system : Users need to verify from their generated set of rules without relying on its leaders or operators
Leverage his or her finance into business : Users can build their protocol related to user’s account
No custodial risk of collaterization: Users do not put collaterals in protocol reserve. They put them in their accounts.
Unlimited scalability : Having a reserve currency from a project to back up its value means their funds are stuck in the network. Standard starts with the organic funds truly from its users and maintains its ecosystem only with algorithms representing each network value.
Standard’s goal is to provide a global unit-of-account with fair and transparent sets of algorithms. They evolve with policies from decentralized governance.
$STDN is the governance and network token of the Standard protocol ecosystem. However, Standard protocol has a 3-token system. $MTR, $LTR & $STDN.