Difference Between MakerDAO and TheStandard.io

What is MakerDAO?

MakerDAO is a decentralized autonomous organization that provides services like savings, borrowing, and lending on the Ethereum blockchain network. It allows users to borrow stable cryptocurrency DAI by locking their ETH in a smart contract. Users pay ETH as collateral to get DAI as a loan, and when users repay their loaned DAI, the smart contract will unlock their ETH to be acquired by them. Its peer-to-peer saving, lending, and borrowing work as a Defi solution powered by MakerDAO protocols token MKR.

How does MakerDAO work?

Maker Vaults generate new Dai via the Maker Protocol. Users may retrieve their collateralized crypto by paying back the Dai they minted with a stability charge. The MKR token may also be used to govern the Maker Protocol. Proposals to be voted on are called Ethereum smart contracts and may be deployed by any Ethereum address. A community of MKR holders may then vote on which bid they prefer, and an Ethereum address that receives more approval votes in the form of MKR is granted administrative access to make the desired adjustments to the Maker Protocol.

MakerDAO protocols token

MakerDAO has two tokens in its protocol. One is for governance purposes, and the other is a stablecoin given as a loan backed by the user’s collateral assets. MKR and DAI are tokens that work as the protocol’s core component and serve many essential functionalities.

MKR:

MKR token is a governance token in the MakerDAO protocol. It gives user governance the right to regulate the development of the protocol. Besides, if the collateral does not cover the amount of DAI loans in circulation, the MakerDAO protocol mints MKR tokens and sells them to cover up the loans.

DAI:

DAI is a stable token pegged to US dollars. It follows economic primary supply and demand functionality and serves as a medium of loans against the collateral placed by users on the protocol.

MakerDAO

Pros

1.MakerDAO is one of the largest Defi projects with the highest TVL in a Defi application, showing it’s a secure and well-tested protocol.

2. DAI is the third largest stablecoin with over 400 apps and exchanges with many trading pairs. This makes DAI highly usable in the secondary market.

Cons

1.MakerDAO is a decentralized platform built on the Ethereum blockchain. If the Ethereum blockchain were to change in a way that is not compatible with MakerDAO, the platform could be rendered unusable.

2.MarkerDAO builds upon the Ethereum blockchain and only supports Ethereum blockchain-based assets. This keeps a wide range of users out of the protocol.

What is TheStandard.io?

TheStandard.io is an over-collateralized stablecoin protocol backed by physical and digital assets. Users can lock up various digital assets(ETH, USDC, USDT, DAI) and tokenized physical assets(gold) in a smart contract and mint sEURO(TheStandard DAO stable token) to use in the secondary market. They can get their assets back by repaying loaned sEURO into the protocol. It’s similar to MakerDAO, but it supports a wide range of assets than MakerDAO, and the user doesn’t have to pay any stability fees. Also, there is zero % interest on the user’s loan.

How does The Standard DAO work?

Users will lock their assets in a smart contract to mint sEURO by paying small minting fees. They will return their assets once they repay their loan in sEURO, which will be burned from circulation. sEURO can also be used to participate in bonding events. Users will get back TST(Protocol governance token) as yield. ROI for bonding events will differ based on its maturity date. TST can be staked to get sEURO with a high yield from the protocol.

TheStandard.io protocol’s token-

TheStandard.io has two tokens within the protocol. Asset back stable token sEURO and TheStandard DAO protocol token TST. Both have essential parts within the protocol.

TST

TST is the governance token of TheStandard DAO. It gives users the voting right to regulate the stablecoins protocol. Also, TST can be used in yield farming. Users who stake TST will get sEURO as ROI collected from the protocol. The rewards will be airdropped directly to the user’s wallet. TST also gives users the right to participate in auction events for buying liquidated collateral.

sEURO

sEURO is the first asset-backed stablecoin in the protocol. This is an over-collateralized asset backed stablecoin. That means there will always be assets backing the total sEURO circulating in the market. sEURO gives the power to create a bond within the protocol.

TheStandard DAO

Pros

1. Over-collateralized asset-backed stablecoin. That means the possibility of sEURO depeg or its value going to zero is impossible.

2. Supports Multichain assets and physical assets. This will cover a wide range of users across the crypto space.

3. The user who stake Governance token TST will get PCV airdropped, which will be collected from the protocol.

Cons

1. Users will have to pay storage fees if they lock physical assets like tokenized gold.

Key Difference between MakerDAO and TheStandard.io

On 28 November 2022, TheStandard.io is going to held IBCO(Operation Deep Liquidity). Early IBCO participants will get exclusive rewards and a chance to mint sEURO at a discount.

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