Standard Protocol is the first Collateralized Rebasable Stablecoin (CRS) protocol for synthetic assets that will operate within the Polkadot ecosystem. It will act as the catalyst for the financial 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 a decentralized oracle.

Standard (STND) is network and governance token to use Standard system. Standard token can be used for 3 cases.

Network Staking

STND token holders also have an option to stake STNDs on the network. (Standard protocol validators or collators) By doing so, the staker receives the nomination reward and the network becomes more secured and decentralized.

Transaction

to use Standard protocol's system, you need to pay fee with STND. STNDs can be burned or given to validators depending on the module's transaction.

On Chain Governance

STND represents shares for Standard protocol. STND holders can participate in governance of Standard ecosystem.

Solutions

Standard tries to solve these problems with these solutions.

Elastic Supply

Ampleforth (AMPL) uses elastic supply to rebase its total supply of tokens. Standard rebases its stablecoin supply in each era, and utilizes overcollaterization to mint its stablecoin, Meter (MTR). Standard (STND) automatically rebases the collateralized stablecoin, in the manner of an algorithmic reserve bank with decentralized governance for STND holders. By rebasing the price in each era, the total supply of the stablecoin Meter (MTR) and the amount that can be issued are adjusted to peg Meter (MTR) to the value of USD.

Decentralized Oracle Ecosystem

Oracle clients from various sources (e.g. Binance, Coinbase, HydraDX, etc) can provide aggregated price information so that the price cannot be manipulated by a single entity. Standard Protocol builds an oracle module to share block rewards with oracle providers. Substrate enables developers to split block rewards to other network participants in every era. Block rewards to oracle providers maintain an 8:2 ratio between validators and the providers in an era. Oracles are used for generating synthetic assets from the stablecoin Meter (MTR). Standard Protocol treats oracles like validators for operating across the wide scope of the DeFi ecosystem. 

Market Efficient Liquidity

Instead of hosting an auction for liquidating collateral, Standard Protocol deposits liquidated collateral to its AMM pair so that Meter(MTR) holders can purchase other liquidated digital assets. Standard protocol uses a built-in AMM module to provide liquidation in a more market efficient way where liquidated assets are utilized to conduct arbitrage trades. Standard Protocol rewards stakeholders who find expired loans by giving them a percentage (10% or more) of the collateral. The rest of it goes to Standard Protocol's built-in DEX to provide arbitrage opportunities to stakeholders who use the exchange.