Standard Protocol — a self-sovereign, Web3 and non-reserve stablecoin protocol — has just announced the launch of USM, its stablecoin. USM will bank on the principle of decentralization to grant total control and ownership to tokenholders and is designed to dispel all of the problems plaguing stablecoin protocols in the trillion-dollar crypto space,
The concept of borrowing
Described as one-of-a-kind, USM will serve as the lending coin on Standard Protocol. Prospective borrowers will be required to provide valuable collateral to qualify for this loan. Unlike most protocols, however, Standard Protocol will grant total and unconditional freedom to borrowers.
Ordinarily, when borrowers collateralize assets in exchange for stablecoins, they do not get full ownership of both the borrowed funds and the collateral. Standard Protocol, through the launch of USM, will allow borrowers to own not only the USM borrowed but also the collateralized assets as well — promoting, in the true sense, the concept of decentralization.
Furthermore, when liquidation happens, the collaterals are sent to the collateral-USM pair on the automated market maker, meaning that the amount of USM stays constant while collateral increases and capital efficiency improves, as the asset is not exclusive to a small group of stakeholders — e.g., the MakerDAO auction.
Standard Protocol will introduce the concept of nonfungible tokens (NFTs) into the lending and borrowing technique powered by USM. When a collateral debt position is opened by a borrower, an NFT is minted in concomitance with the debt borrowed. Challenging the existing status quo, Standard Protocol will grant the borrower full ownership of both USM and the trade-in asset that has been collateralized.
While the concept of lending and borrowing in decentralized finance may sound alien to newcomers, Standard Protocol will focus primarily on educating the populace through videos and comprehensive guides as part of its long-term plans to rally everyone around the nascent protocols. In addition, it will offer an intuitive user interface and experience.
The STND token: Standard Protocol’s governance token
In addition to the launch of USM, which will offer tokenholders a ton of benefits, Standard Protocol will take things up a notch by rewarding holders of its native token, STND. Tokenholders will receive rewards in the form of fees obtained by Standard Protocol through its decentralized exchange.
In running a democratic project where community members make decisions based on majority votes, STND will act as the governance token of Standard Protocol. Fees gathered from lending USM will be distributed, albeit based on the total number of tokens held, to all STND holders.
Aimed at being an all-around protocol, Standard Protocol has partnered with a ton of brands in and out of the blockchain space. Its recent partnership with Celer Network, a cross-layer and inter-blockchain communication platform, will allow the protocol to foray into the world of layer 2 while delivering multiple chain connections to users.
Standard Protocol has designed a viable roadmap with a ton of amazing products lined up, some of which include the introduction of new stablecoins that are pegged at fiat currencies, a decentralized autonomous organization-powered community, the release of financial NFTs and more.
About Standard Protocol
A recipient of the famous and highly coveted Polkadot Web3 Foundation Grant, Standard Protocol is a self-sovereign, non-reserve stablecoin protocol that appreciates the vision and truly decentralized form of Web3. Aimed at offering users total control of their monetary activities, Standard Protocol, through the launch of USM, will strive to change the existing status quo — guaranteeing borrowers’ freedom and ownership of both their collateralized assets and USM borrowed. Read more here.
- Company: Standard Protocol
- Contact: Chapman Ho, Crystal Chow, marketing
- Website: Standard.tech
- Email: firstname.lastname@example.org
- Twitter: Twitter.com/StandardWeb3
- Telegram: T.Me/Standard_Protocol
- Medium: blog.Standard.tech
- Discord: Discord.gg/wYudHv83hc