Blocksync Ventures has added Standard Protocol to our investment portfolio. We’re delighted to announce our collaboration with this Collateralized Rebasable Stablecoin protocol for synthetic assets operating across the Polkadot Ecosystem.
The blockchain industry is going through a hugely significant time. Now more than ever, cryptocurrencies are coming into the mainstream consciousness. The altcoin market and DeFi in particular is exploding which means vast amounts of wealth is currently being traded on-chain. With the influx of institutions into the market, now more than ever, stablecoins are necessary to keep wealth on chain in a stable state.
Blocksync Ventures is proud to be amongst many great crypto institutions investing in Standard Protocol. AU21 Capital, Master Ventures, Lotus Capital, Spark Digital Capital and Altvest are just a few of the many big names involved in this exciting project.
A More Decentralized Stablecoin
The biggest problem with many stablecoins currently on the market, is that the price actually lacks stability. The asset lacks collateral and as a result of this the value can fluctuate to a degree. Furthermore, oracles are too centralized and there is no incentivized eco-system built around them.
Standard Protocol is a collateralized stablecoin like DAI but with elastic supply like AMPL. With Standard Protocol users can earn MTR (the stablecoin) by collateralizing digital assets. MTR can be used to purchase other digital assets until the price of the coin deviates too far from $1. At this point it is rebased.
The Ecosystem also provides a decentralized oracle system. Oracle providers, decided by governance, are incentivized with a 20% share of the block rewards. Automated Market Makers (AMMs) are used to create arbitrage opportunities, keeping the coin stable.
Standard Protocol has a three token system. Meter (MTR) is the stablecoin. Liter (LTR) is the liquidity provider token. LTR can be burned in AMM to receive deposited assets and also be used for yield farming. Finally, Standard (STND) is the network and governance token. STND holders can steak for block rewards and take part in on-chain governance.
Standard Protocol takes the best of both collateral and algorithmic protocols to maintain the stability of its coin. Unlike FIAT backed stablecoins, MTR can be trusted because its value is ensured by a decentralized system. Ultimately, Blockchain and cryptocurrencies are built on the philosophy that decentralization is the fairest and most transparent way to do things. Standard Protocol applies that philosophy to its stablecoin and we are proud to be part of their journey.
We’re delighted to secure this partnership with Blocksync Ventures. The road ahead is an exciting yet challenging one and we’re glad to have such a trusted partner to share it with. Together we can build the most reliable and decentralized stablecoin
- Hyungsuk Kang (Founder & CTO of Standard Protocol)