TheStandard.io- the stablecoin protocol aiming to succeed, where others failed
In the crypto world, stablecoins are one of the most important innovations, bridging the legacy system with Defi. Stablecoins are price-stable digital tokens (i.e., effectively pegged to another stable asset like gold or fiat currency). This means their value does not fluctuate wildly, as is typical with popular tokens such as Bitcoin or Ethereum.
Let’s introduce you to a new breed of physical and digital asset-backed stablecoin protocol. TheStandard.io is a blockchain-based stablecoin protocol that offers a solution to many of the problems inherent in traditional stablecoin models. The protocol is based on the Ethereum blockchain and uses smart contracts to create transparent digital tokens with built-in stability mechanisms. By utilizing these advanced features of blockchain technology, TheStandard.io can build a stablecoin that is cheaper and faster than other solutions while also being decentralized, trustless, and auditable.
How does TheStandard.io work?
The Standard protocol uses a straightforward method. You lock your physical and digital assets in a smart vault, and in exchange, you will get stablecoins which you can use as you like. Meanwhile, your assets are secured as collateral, and when you pay back the stablecoin value you minted, you will unlock your vault freeing your physical and digital assets.
The Standard protocol token TST can be earned by creating a bond between stablecoin sEURO and other digital assets. This is the initial phase of Operation Deep Liquidity. You can earn high-yield farming by staking the native token TST in the protocol. TST also allows users to participate in the protocol DAO voting.
What makes The Standard protocol different from other projects?
There are many crypto projects which offer similar solutions to the Standard protocol. There are already many other popular stablecoins on the market, but here are some key differences:
1. The Standard protocol charges a 0% interest rate.
2. They have a very transparent system that will ensure no manipulation from the core team or external authority to exploit the system by increasing the supply without any backing. That means the sEURO supply will be increased or decreased only based on the assets locked in the smart vault.
3. It’s an overcollateralized physical and digital asset stablecoin, which is quite unique.
4. They are not only focused on one stablecoin offering but looking to bring other stablecoins like sUSD, sINR, sGBP, etc., to the market.
The mechanism behind the sEURO?
The protocol itself uses a very simple but effective mechanism to hold its peg and maintain liquidity in the protocol. Users must first deposit their physical or digital assets as collateral to mint the sEURO stablecoin. When they return the sEURO to the protocol, sEURO will be burned, and the collateral will be unlocked and returned to the user.
In the IBCO stage one, you can use your assets to mint sEURO at a discount price. In stage two, you can create an Uniswap liquidity bond between sEURO and USDT to earn a strong yield in The Standard membership token (TST). TST holders can stake their tokens to earn sEURO rewards collected by deploying the protocol-controlled value in stages one and two. The next upgrade will release private smart vaults, enabling people to lock up assets and borrow sEURO at zero percent interest.
Wrap-up: The demand for stablecoins is growing. Investors are looking for a place to invest without the fluctuations of crypto assets. The market already has many stablecoin protocols, but most have issues with transparency, trust, or the mechanism itself. We saw how SEC opened the file against USDT for the lack of transparency on how the stablecoin is backed and how UST lost its peg and unraveled into a death spiral. TheStandard.io can be a haven for investors to use without any of those same issues.
I can see the project is doing great, with tons of partnership news every month. Keep an eye on their social media to keep updated. You will find all the links below this post