Guide: How To Mint USM
Guide: How To Use DEX
© Digital Native Foundation Inc
Standard Protocol in 2022
Standard protocol was just a hackathon project team which got a reward from Encode in Mar 2021. Its design was to make the most decentralized money that can sustain itself without centralized control. Since I started to continue development communicating in a discord in 2021, now the project has grown with 15 team members, over 15k users using our beta platform, and $3.3M investment to support our goal.
Now Standard is being built with more than 20 partners to make self-sovereign money for web3.0. With our first product release, I would like to share our next goals for Standard in 2022, how the team plan to bring sustainable, web3.0 finance and more. Let’s go through our first product, USM.
USM: Self-sovereign, Non-reserve stablecoin
TL;DR: Unlike other stablecoins, USM provides Self sovereignty and applies non-reserve architecture to sustain its peg.
Borrowers can sell their vaults with NFTs proving the ownership of their vault. This will give full sovereignty to borrowers to manage the fund for their stablecoin. NFT for managing Vault(CDP)s, V1 will be listed in each NFT marketplaces in each evm network(e.g. Opensea, Looksrare, TofuNFT, Metacraft, etc)
USM, unlike other collaterized algo-stablecoin, does not lock up a fund in a multisig in reserve. This eliminates custodian risk which is shared in all stablecoin ecosystem which is sometimes exaggerated with “sifu risk”.
A simple monitoring graph for each stablecoin risk (source: @Brentsketit)
Funds in Standard stays in smart contracts with each purpose written in smart contracts. Liquidations does not go to a multisig wallet, instead they are sent to DEX pair between USM and its collateral, giving full opportunity to USM holders to buy liquidations at a discounted price. Those who generate new USM to buy liquidation will strengthen USM positions with deleveraged value of collateral.
Next, here are some of current challenges the team faces.
It was not as effective to bootstrap liquidity from our beta launch with farming as Olympus Pro. Instead of relying on mercenary LPs, Standard will change liquidity mining program from simple yield farming to Protocol owned liquidity management with bonds from Olympus Pro. Unlike Olympus, Standard will share 0.3% fee from its DEX to STND token stakers in dividend pool through buyback. This will make STND price to go up and turn STND into sustainable asset with accruing dividends from protocol revenue.
Community reported that there is not good enough UX to check their Maximum Extractable Value(MEV) in our ecosystem. Standard in 2022 will focus on showing account portfolio on each wallet’s position starting with dividend from our economic machine while keeping privacy. This will give more positive and clear experience of using our protocol with airdrops based on accounts activity to the system(e.g. amount of liquidity provided to our protocol, number of trades done in the dex, number of CDP repayment done in our stablecoin system, etc)
As for newcomers in defi, it may be hard for them to understand the collateral-debt-position or basics of Standard’s protocol system. To make general people understand us, Standard in 2022 will focus on releasing videos or guides on how to use Standard or understand overall economics and structure of its protocol with explanations and illustrations. We will make sure that everyone is able to explain others about our ecosystem, so we will make more blog posts, more documentations, and more tutorials for beginners to enjoy our defi experience.
What’s next for Standard?
Roadmap is still Work In Progress(WIP), here are some things that are necessary to ship in this year.
- More adoption. Not only with USM stable MTR token, Standard will focus on bringing other stablecoins pegged to other fiat currencies such as EUR, KRW, or JPY. Standard will eventually host the multichain forex between these stablecoins to be traded with all major crypto assets in each network.
- Better user experience and interface. As explained in previous sections, Standard will focus on wallet-focused user experience and rewards using onchain data with privacy by only tracking wallet data.
- Multichain expansion. Unlike crosschain protocols, Standard will have each protocol implementation proving all assets are legit through its algorithms in each chain. Standard will have multiple implementations starting with Polkadot parachain to accomodate stablecoins for transaction fee, then Cosmos, Solana and so forth.
- Financial NFTs. Not just V1 from vault, Standard will release multiple financial NFTs for managing defi with full sovereignty from user’s wallet. Money markets will be released with Bond NFTs in Q2, and LP providers will be able to borrow assets from LP tokens. Option NFTs will be released so that NFT holders can generate futures shorting or longing an asset.
- DAO. Standard will setup its own governance with STND stakers on voting APY so that those who stake STND to vote on proposals can be rewarded with dividend. We will also start electing councils to create proposals that are dedicated to create futures of Web3.0
As Standard grows, STND stakers will get permanent dividend with more value added to their position.
2022 will be the year where Standard finally ships its protocol and expand with strong fundamentals built from last year. STND holders and stakers will finally see its value added to the tokens and get sustainable dividends. Our team cannot wait to present new sustainable, self-sovereign finance for Web3.0. Happy new year everyone and GM.