# What is TheStandard? {% embed url="" %} This AI-generated podcast will give you a quick deep dive into the TheStandard protocols white paper. {% endembed %} ## What is The Standard Protocol? The Standard Protocol is an innovative decentralized finance (DeFi) platform that reimagines traditional financial services through blockchain technology. It offers a suite of financial tools designed to provide users with unprecedented control, efficiency, and transparency. ### Core Components of The Standard Protocol 1. **Smart Vaults**: Non-custodial, on-chain wallets that allow users to deposit various crypto assets as collateral. These vaults are represented as dynamic NFTs, enabling unique features like transferability. 2. **Zero-Interest Borrowing**: Users can borrow against their collateral without paying interest, a feature made possible through yield-generating mechanisms on the deposited assets. 3. **USDs Stablecoin**: A fully collateralized, decentralized stablecoin pegged to the US dollar, maintained through an over-collateralization mechanism. 4. **Yield Generation on Collateral**: Deposited assets are put to work in decentralized exchanges and liquidity pools, generating returns for users. 5. **TST (The Standard Token)**: The governance token of the protocol, allowing holders to participate in crucial decision-making processes. ### How The Standard Protocol Works 1. Users deposit crypto assets into their Smart Vault. 2. Based on the collateral value, users can borrow USDs. 3. Deposited collateral is allocated to yield-generating strategies. 4. Users can manage their positions, trade collateral, or repay loans at any time. 5. TST holders can participate in governance decisions. ### The Standard's Unique Value Proposition * **True Decentralization**: Eliminates intermediaries in borrowing, yield generation, and trading. * **Capital Efficiency**: Maximizes utility of locked assets through simultaneous borrowing and yield generation. * **User Empowerment**: Every action requires user authorization, ensuring complete control over assets. * **Innovative Stability**: Combines over-collateralization and yield generation for a robust stablecoin foundation. The Standard Protocol aims to become the leading decentralized borrowing and stablecoin issuance platform in the DeFi space, offering a more accessible, efficient, and user-centric financial system. # Vision Statement {% embed url="" fullWidth="false" %} Ai Generated a podcast on our vision statement. {% endembed %} ## TheStandard Vision Statement TheStandard envisions a world where financial freedom knows no borders, where individuals are empowered to control their economic destiny without intermediaries or centralized authorities. We believe in the transformative power of decentralized finance to reshape the global financial landscape. Our vision is built upon these core principles: 1. **Code is Law**: We trust in the immutability and transparency of smart contracts to govern financial interactions, eliminating the need for traditional intermediaries and reducing counterparty risk. 2. **Math as the Ultimate Regulator**: We rely on cryptographic principles and mathematical certainty to create a trustless environment, where financial stability is ensured by algorithms rather than fallible human judgment. 3. **Borderless Financial Freedom**: We strive to create a truly global financial system that transcends geographical boundaries, political jurisdictions, and traditional banking systems, providing equal access to financial services for everyone, anywhere in the world. 4. **Cypherpunk Ethos**: We champion privacy, encryption, and individual sovereignty in the digital realm, believing that financial privacy is a fundamental human right. We believe in Privacy for the weak, transparency for the powerful. 5. **Anarcho-Capitalist Principles**: We promote voluntary interactions and free market solutions, rejecting coercive centralized control in favor of spontaneous order emerging from individual choices. TheStandard aims to be the cornerstone of this new financial paradigm. By providing zero-interest loans, trustless yield generation, and over-collateralized stablecoins, we're building the infrastructure for a more equitable, efficient, and accessible financial future. Our goal is to become the world's largest cross chain decentralized borrowing protocol, empowering individuals to take control of their financial lives, free from the constraints of traditional banking systems and governmental monetary policies. Through continuous innovation, community governance, and unwavering commitment to our principles, we will usher in an era of true financial sovereignty, where every individual has the tools to build, grow, and preserve their wealth on their own terms. Join us in revolutionizing finance, one smart contract at a time. # What is DeFi? ### Decentralized Finance: A Paradigm Shift Decentralized Finance, or DeFi, represents a revolutionary approach to financial services that aims to address the longstanding issues plaguing traditional banking and centralized finance systems. These legacy systems have often been marred by corruption, inefficiency, and a lack of transparency, leading to incidents like the collapses of MtGox, FTX, Celsius, and BlockFi. At its core, DeFi seeks to recreate and enhance traditional financial functions using blockchain technology, with a fundamental principle: users should have full control over their assets through ownership of private keys. This ethos is encapsulated in the phrase, "Not your keys, not your crypto." ### The Power of Mathematical Regulation DeFi introduces the concept of "regulation through mathematics." Unlike traditional financial systems where rules can be bent or broken by those in power, DeFi protocols operate on immutable smart contracts. These contracts execute precisely as programmed, regardless of external pressures. In essence, 2+2 will always equal 4 in a DeFi system, providing a level of certainty and fairness that traditional finance often struggles to achieve. ### TheStandard Protocol: Empowering Users in DeFi TheStandard Protocol stands at the forefront of this financial revolution, focusing on three critical aspects of finance that traditionally required centralized authorities: 1. **Borrowing and Collateral Management**: Users can borrow against their own assets without relying on a centralized entity to hold their collateral. 2. **Yield Generation through Market Making**: The protocol enables users to become market makers and earn yields on their assets, with automatic compounding features. 3. **Collateral Trading**: Users can trade their collateral directly on decentralized exchanges (DEXs) without intermediaries. What sets TheStandard apart is its ability to seamlessly integrate these functions into a decentralized, user-controlled environment. Every action – from borrowing to yield generation to trading – requires the user's explicit authorization through their private key signature. This approach eliminates the need for third-party trust and places control firmly in the hands of the users. ### The Significance of TheStandard's Approach By developing these financial capabilities on-chain without the need for centralized authorities, TheStandard Protocol is advancing the core mission of DeFi. It's creating a financial ecosystem where: * Users have full custody and control of their assets at all times. * Financial operations are transparent and verifiable on the blockchain. * Smart contracts, rather than corruptible entities, govern the rules of engagement. * The risk of centralized points of failure is significantly reduced. In essence, TheStandard is not just participating in the DeFi movement; it's actively shaping a future where financial services are more accessible, transparent, and user-centric. By empowering individuals to manage their finances without relying on traditional banking infrastructure, TheStandard is contributing to a more inclusive and resilient global financial system. As DeFi continues to evolve, protocols like TheStandard will play a crucial role in demonstrating the viability and advantages of decentralized financial services, potentially catalyzing broader adoption and reshaping the landscape of global finance. # Key Benefits ## Key Features of The Standard Protocol The Standard Protocol offers a range of innovative features designed to revolutionize decentralized finance. Here are the key benefits that set The Standard apart: ### 1. Zero-Interest Borrowing * **No Interest Charges**: Borrow against your collateral without accruing interest. * **Cost-Effective**: Significantly reduces the long-term cost of borrowing compared to traditional lending platforms. * **Flexible Repayment**: No fixed repayment schedules, allowing users to manage their debt on their own terms. ### 2. Yield-Generating Collateral * **Active Collateral**: Deposited assets can be put to work in liquidity pools if the user chooses to generate returns. * **Offset Borrowing Costs**: Yields earned can potentially cover or exceed the costs associated with borrowing. * **Customizable Strategies**: Users can choose between stable and volatile pools to balance risk and reward. ### 3. Smart Vaults as NFTs * **Unique Digital Asset**: Each vault is represented as a dynamic NFT. * **Transferability**: Vaults can be transferred or sold without closing positions. * **Composability**: Potential for use as collateral in other DeFi protocols, enhancing overall ecosystem utility. ### 4. Decentralized Stablecoin (USDs , EUROs) * **Fully Collateralized**: Backed by a diverse range of crypto assets. * **Transparent**: All collateral is visible on-chain. * **Stable**: Maintained through over-collateralization and advanced stabilization mechanisms. ### 5. User-Centric Control * **Non-Custodial**: Users retain full control of their assets at all times. * **Self-Directed Management**: Complete freedom to adjust positions, add or remove collateral, and manage debt. * **Permissionless**: No KYC or credit checks required, accessible to anyone with a compatible wallet. ### 6. Capital Efficiency * **Dual Utility of Assets**: Collateral serves for both borrowing and yield generation simultaneously. * **Optimized Returns**: Potential to earn yields higher than borrowing costs, creating a positive-sum scenario. * Needing only 110% over collateralization. ### 7. Robust Governance (TST Token) * **Community-Driven**: TST holders can propose and vote on protocol changes. * **Stake for Rewards**: Earn a share of protocol revenues by working to stake TST. * **Aligned Incentives**: Governance participants are incentivized to act in the best interest of the protocol. ### 8. Enhanced Security Measures * **Audited Smart Contracts**: Regular third-party audits ensure code integrity. * **Risk Management Tools**: Built-in features to help users manage their positions safely. * **Transparent Operations**: All protocol actions are visible and verifiable on-chain. ### 9. Interoperability * **Cross-Chain Potential**: Future-proofed for multi-chain operations. * **DeFi Ecosystem Integration**: Designed to work seamlessly with other DeFi protocols and services. # USDs & EUROs ### USDs & EUROs mechanics USDs is TheStandard's USD-pegged stablecoin, central to the protocol's borrowing operations. **Minting Process:** 1. Users deposit collateral into a Smart Vault. This can be single or multiple collateral types. THere is a [list of collateral types here](/tst/introduction/collateral-types). 2. Based on the collateral value, users can mint USDs with 0% interest but they must always have a minimum of 110% collateral. 3. A variable minting fee is applied, typically aimed at around 1% of the initial debt. (Sometimes more, sometimes less. The interface will let you know what the current fee is. 4. This fee is added as debt on top of the requested loan amount. 5. The minting fee is distributed to TST stakers as a reward in the stablecoin. **Burning Process:** 1. Users repay their USDs debt to the Smart Vault. 2. The repaid USDs are burned, removing them from circulation. 3. Once the debt is fully repaid, users can fully withdraw their collateral. (In the mean time users can still trade their collateral and earn a yield from it.) The variable minting fee serves as a mechanism to control USDs supply when needed. By adjusting this fee, the protocol can influence borrowing demand and, consequently, the USDs supply. **Use Cases for USDs:** 1. Within the Protocol: * Borrowing * Liquidity provision in DEX pools * Collateral for other DeFi protocols 2. Outside the Protocol: * Stable store of value * Trading pair on various exchanges * Payment method in the broader crypto ecosystem # Collateral Types The Standard supports a variety of collateral types, including: * Wrapped Bitcoin (WBTC) * Ethereum (ETH) * Wrapped Ethereum (WETH) * Arbitrum (ARB) * Chainlink (LINK) * PAX Gold (PAXG) * GMX (GMX) * Radiant (RDNT) * SushiSwap (SUSHI) The collateralization ratio is always set at 110%, as Smart Vaults take into consideration all assets in a single smart vault collectively. Users can deposit a mix of different assets, and the vault evaluates the value as a whole, ensuring optimal collateral efficiency. # Important links and addresses ### Main links * The Standard.io Website & Resources: Website: * White Paper: * Video Overview of TheStandard.io: * Blog: * Github: ### Add TST and EUROs to your web3 wallet If you are using Metamask, we recommend using the add tokens links on the top menu bar or footer of . This will automatically add the coins and their logos to matemask. If you need to add them manually, here are the addresses for ARBITRUM ONE. [For a full logo pack please click here ](https://drive.google.com/drive/folders/1q6qTr8J0GLrTSIfMgTLX0ANuS7P-HOsy)
TST contract address on Arbitrum: \ 0xf5A27E55C748bCDdBfeA5477CB9Ae924f0f7fd2e\
USDs contract address on Arbitrum:\ 0x2Ea0bE86990E8Dac0D09e4316Bb92086F304622d\ ‍
EUROs contract address on Arbitrum: \ 0x643b34980e635719c15a2d4ce69571a258f940e9\ More networks below ### Social Media Channels: Twitter: Youtube: Facebook: LinkedIn: Medium: Reddit: Instagram: T ### TheStandard DAO Governance Snapshot (governance): OR ### ERC20 Listings & Contracts ### CoinGecko TST Coingecko Listing: USDs Coingecko Listing: EUROs Coingecko Listing: ### CoinMarketCap TST CMC Listing: USDs CMC Listing EUROs CMC Listing: ### ERC20 Contract Addresses: TST on Arbitrum One Network: (THIS IS WHERE WE ARE CURRENTLY DEPLOYED) \ 0xf5A27E55C748bCDdBfeA5477CB9Ae924f0f7fd2e TST on ETH Mainnet:\ 0xa0b93b9e90ab887e53f9fb8728c009746e989b53 TST on Polygon (MATIC) network:\ 0xe342ebb6a56cd3dbf0fe01a447fe367b9290ecf8 EUROs ETH Mainnet:\ 0xb399511642FE1666c6a07f83483e6E4feAed9A00 EUROs Arbitrum Mainnet:\ 0x643b34980e635719c15a2d4ce69571a258f940e9 WBTC Arbitrum Mainnet:\ 0x2f2a2543b76a4166549f7aab2e75bef0aefc5b0f\ LINK Arbitrum Mainnet:\ 0xf97f4df75117a78c1a5a0dbb814af92458539fb4 ARB Arbitrum Mainnet:\ 0x912ce59144191c1204e64559fe8253a0e49e6548 PAXG Arbitrum Mainnet:\ 0xfEb4DfC8C4Cf7Ed305bb08065D08eC6ee6728429 ### Bonus links TheStandard Smart vault URL: \ Bridge EUROs and TST: \ Arbitrums native bridge: \ Smart Vault Walkthrough tutorial: \ Add liquidity to EUROs/USDC.e LP: (edited) \ \ Full logo pack TST logo EUROs logo USDs Logo # Disclaimer PLEASE READ THIS DISCLAIMER CAREFULLY. IF YOU HAVE ANY DOUBTS ABOUT YOUR ACTIONS, CONSULT YOUR LEGAL, FINANCIAL, TAX, OR OTHER PROFESSIONAL ADVISOR(S). The information provided on TheStandard.io, including discussions about features, functionality, DeFi borrowing mechanisms, and yield generation, does not constitute financial, investment, trading, or any other form of advice. You should not treat any content on this website as such. TheStandard.io does not recommend buying, selling, or holding any cryptocurrency. Conduct thorough due diligence and consult your financial advisor before making investment decisions. **Accuracy of Information:** While TheStandard.io strives for accuracy, we bear no responsibility for missing or incorrect information. All information is provided "as is," and you understand that you use any and all information available here AT YOUR OWN RISK. **Price Risk:** Cryptocurrency prices, including Bitcoin and others, are highly volatile. Price fluctuations of 20-100% in a single day are common. This volatility can lead to significant profits or losses. DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE. Cryptocurrency trading may not be suitable for all users. Anyone considering cryptocurrency investments should consult a qualified, independent professional financial advisor. **Yield Generation and Third-Party Protocols:** TheStandard.io integrates with third-party protocols, including Gamma, to provide yield generation functionality. Users explicitly acknowledge that any interaction with these third-party protocols, including but not limited to liquidity provision and yield farming, is done at their own risk. TheStandard.io bears no responsibility for any losses, errors, or issues arising from the use of these third-party protocols. By using TheStandard smart contracts, the user acknowledges that all APY's listed within the DAPP or on the front landing page of TheStandard.io are approximates only and pulled directly from the Gamma protocol API. The full risk and responsibility for using Gamma through TheStandards smart Vaults or any other integrated protocol lies solely with the user. **Open-Source Nature and Developer Liability:** TheStandard.io and TheStandard Protocol are products of a dedicated team of developers creating free and open-source smart contracts for the DeFi community. The developers behind these products are solely engaged in coding and releasing these smart contracts without assuming responsibility for their functioning. While we strive to ensure the security and reliability of these contracts, we provide no guarantees. All risks associated with the use of these smart contracts, including any financial gains or losses, are borne 100% by the user/borrower. **Non-Custodial and Decentralized Nature:** TheStandard.io operates as a non-custodial, decentralized protocol. We do not hold or control user funds at any point. Users are solely responsible for managing their private keys and maintaining the security of their wallets and assets. **Regulatory Compliance:** Users are responsible for ensuring their use of TheStandard.io complies with all applicable laws and regulations in their jurisdiction. TheStandard.io does not guarantee the legality of its services in all jurisdictions and bears no responsibility for any legal issues arising from its use. **Smart Contract Risk:** Despite rigorous auditing and testing, smart contracts may contain bugs or vulnerabilities. Users acknowledge this risk and agree that they are interacting with these smart contracts at their own risk. **Intellectual Property:** All content on this website, including text, graphics, logos, images, and software, is the property of TheStandard.io or its suppliers and is protected by copyright laws. By using TheStandard.io, you acknowledge that you have read, understood, and agree to all terms and conditions in this disclaimer. If you do not agree with this disclaimer, you are not authorized to use or access TheStandard.io. # Quick Start Guide Welcome to TheStandard.io, your portal to decentralized finance (DeFi) borrowing. This guide will walk you through the steps to start using our platform for DeFi borrowing activities. It assumes that you already have the Arbitrum One network added to your Web3 wallet and have funds ready to borrow against. {% hint style="info" %} NOTE: If you need help adding the Arbirum network to your Metamaks or other web3 wallet then [we have a detailed guide for that](/tst/additional-resources/what-is-arbitrum-one/adding-arbitrum-one). {% endhint %} ### Step1: **Connect Your Wallet** 1. **Visit TheStandard.io**: Click on the open Dapp button, or simply [click here](https://app.TheStandard.io). 2. **Connect Wallet**: Click on the "Connect Wallet" button. Select MetaMask or your preferred Web3 wallet from the popup. Ensure you are connected to the Arbitrum One network. ### **Step 2: Create your first smart vault** Creating a smart vault allows you to borrow against your collateral with ease. Here's how to get started: 1. **Initiate Smart Vault Creation**: On TheStandard.io, click on "Create Smart Vault" for either EUROs or USDs (COMING SOON), based on your preference. 2. **Authorize Transaction**: MetaMask (or your chosen Web3 wallet) will prompt you to sign a transaction. This step communicates with the smart contract to create a new smart vault exclusive to your wallet. During this process, your dynamic NFT is also minted. While we'll delve into the specifics of the NFT later, understand it represents a novel way to sell or transfer your smart vault should you choose to. {% embed url="" %} ### **Step 3: Uploading Collateral** 1. **Select Collateral Type**: Choose the type of asset you'd like to use as collateral. Our platform supports a variety of assets including WBTC, ETH, ARB, LINK, PAXG, and more. 2. **Deposit Collateral**: Enter the amount of the asset you want to deposit as collateral. Ensure you have sufficient funds in your wallet for the transaction. 3. **Confirm Collateral Upload**: Review the transaction details and confirm the collateral upload in your Web3 wallet. The assets will then be securely locked in your smart vault. {% embed url="" %} ### **Step 4: Borrowing** 1. **Choose Borrow/Repay**:You will now see your borrowing and repayment interface. You will be on Borrow by default. 2. **How much EUROs you would like to borrow**: Input the amount of EUROs you would like to borrow and keep an eye on your health bar along the top right of the interface. This will let you know how close you are to the liquidation ratio of 110% collateral. 3. ```

The health bar updates in real time. Generally stay out of the red.

``` 4. **Initiate Borrowing**: Review all details carefully. Confirm and initiate the borrowing process in your wallet by clicking the withdrawal button. 5. Be sure you have added EUROs to your web3 wallet. \ EUROs Arbitrum Contract Addresses: 0x643b34980e635719c15a2d4ce69571a258f940e9 \ You can automatically add EUROs to MetaMask by clicking the "Add EUROs" button on the bottom left of this page.

The borrowing window with details about the transaction.

Underneath the amount the user wants to borrow they will see * the address they are going to mint the EUROs to, * that the interest is a fixed 0%interest loan, * what the one time minting fee currently is, * how much EUROs is being minted * how much EUROs will arrive in the users wallet. NOTE: All fees generated across the protocol get dropped onto people staking in the Yield account so it's definitely worth your while checking that out. {% embed url="" %} How to borrow against your crypto collateral {% endembed %} ### **Step 5: Managing Your Vault** * **Trading Locked Collateral**: You can trade portions of your locked collateral within TheStandard.io based on market trends. {% embed url="" %} Trade your locked collateral {% endembed %} * **Adding Collateral**: Boost your collateralization ratio by adding more collateral anytime. * **Repaying Debt**: Use the platform interface to repay your borrowed amount and unlock your collateral. ### **Step 6: Earning Crypto Through the Yield Accounts** {% hint style="info" %} Be sure to grab yourself some TST (TheStandard Token) You can get this directly on the yield page using the DEX interface. {% endhint %} 1. Click on YIELD ACCOUNT in the top navigation bar. 2. Make sure you grab yourself some TST 3. Stake an equal amount of coins TST and EUROs. This means if you want to stake 2000 EUROs, then you should also stake 2000 TST. {% hint style="info" %} NOTE: If you have placed 25K EUROs into the yield accounts but only 1K TST staked, then the Yield accounts will only ever use 1K of your EUROs to buy liquidated assets at the discounted rate of around 10%. We recommend having an equal amount of TST as EUROs in token amount. This will bring you the largest returns. {% endhint %} TST will attract all fees paid from Minting new debt. This will be placed into your yield account as EUROs. This is a great way of compounding your EUROs. \ \ The EUROs are used to buy up crypto at around a 9.91% discount. These cryptos come from * Assets from vaults that have been liquidated. * Fees are collected from swapping / trading locked collateral. Every time someone trades, a 1% fee is taken in the asset being traded out of. This crypto is sold to people who have placed EUROs in their yield accounts. {% embed url="" %} **Additional Features** Explore Yield Accounts for earnings and the option to sell or transfer your smart vault NFT for greater liquidity or wallet management.
# Connecting Your Wallet To interact with The Standard Protocol, you'll need to connect a Web3 wallet. This guide will walk you through the process, with a focus on MetaMask, though other wallets are also supported. ### Supported Web3 Wallets The Standard Protocol supports various Web3 wallets, including: * MetaMask (recommended) * Rainbow * Coinbase Wallet * WalletConnect While this guide focuses on MetaMask, the connection process is similar for other wallets. ### Connecting Your Wallet: Step-by-Step Guide #### 1. Navigate to The Standard Protocol Website Visit . You'll see a screen similar to the one in Image 1, prompting you to connect your wallet. #### 2. Click "Connect Wallet" On the main screen, click the "Connect Wallet" button as shown in Image 1.
#### 3. Choose Your Wallet A popup will appear (as seen in Image 2) displaying various wallet options. If you have MetaMask installed, it will appear under the "Installed" section. Otherwise, you can choose from the "Popular" options listed below.
#### 4. Select Your Account (MetaMask Example) If you're using MetaMask, a new window will open (as shown in Image 3). Here you can: * Select which account(s) you want to connect * Create a new account if needed * See the balance of each account Choose the account you wish to use and click "Next".
#### 5. Review Permissions The next screen (Image 4) will show you the permissions The Standard Protocol is requesting. Typically, this includes viewing your address, account balance, and activity. Review these permissions carefully.
#### 6. Confirm Connection If you're comfortable with the requested permissions, click "Connect" to finalize the wallet connection. #### 7. Start Using The Standard Protocol Once connected, you'll be taken to the main dashboard, where you can view your vaults, balances, and start interacting with the protocol. If you are brand new here you can create a brand new USDs smart Vault. ### Important Notes * Always ensure you're on the correct website () before connecting your wallet. * ALWAYS CHECK PERMISSIONS THAT YOU ARE GIVING ON ANY DEFI DAPP! * NEVER share your private keys or seed phrases with anyone, including The Standard team. * The Standard Protocol will never ask for your private keys or seed phrases. ### Troubleshooting If you encounter issues connecting your wallet: 1. Ensure your wallet has sufficient funds for network fees. 2. Check that you're on the correct network ( Arbitrum). 3. Try refreshing the page or reconnecting your wallet. 4. If problems persist, reach out to [The Standard's community support channels.](https://discord.gg/thestandard-io-836907456743079956) Remember, your wallet is your gateway to the decentralized world. Always prioritize security and double-check all transactions before confirming them. # Understanding Smart Vaults This article talks about the concepts behind the smart vaults. If you are after a full tutorial on using the smart vaults, please see the [quick start guide](/tst/getting-started/quick-start-guide). #### Full Control and Transferability of Smart Vaults An essential feature of Smart Vaults on TheStandard.io platform is the unprecedented level of control and security they offer to users. It's crucial to understand that TheStandard Smart Vaults are designed with autonomy and decentralization at their core. This section will explain how control over Smart Vaults works and the innovative mechanism of transferring control through NFT keys. ### **Autonomous Control** * **Web3 Wallet Integration**: Each Smart Vault is intrinsically linked to the Web3 wallet that created it. This ensures that the creator, and only the creator, has control over the vault's operations, including adding or removing collateral, minting debt against the collateral, and closing the vault. * **Direct Control**: The direct control mechanism means that as long as you hold the private keys to your Web3 wallet, you are the sole operator of your Smart Vault. There are no intermediaries, centralized authorities, or hidden mechanisms that can alter or influence your control over the vault. ### **NFT Key: Transferability of Control** * **Innovative Transfer Mechanism**: TheStandard.io employs a novel approach to transfer the control of Smart Vaults using NFT (Non-Fungible Token) keys. When a Smart Vault is created, an associated NFT key is minted. This NFT represents the control and ownership of the Smart Vault. * **Transferring Ownership**: Should you decide to transfer ownership of the Smart Vault, you transfer the NFT to another party. Upon receiving the NFT, the new holder gains full control over the Smart Vaults debt and collateral, just as if they had created it themselves. This process is secure, seamless and maintains the integrity and security of the vault. * **Benefits of NFT Key Transfer**: * **Security**: This method ensures that the transfer of control is deliberate and secure, reducing the risk of unauthorized access. * **Flexibility**: It provides users with the flexibility to sell, trade, or gift their Smart Vaults while maintaining the security and integrity of the underlying assets. * **Transparency**: The transfer of the NFT key is recorded on the blockchain, providing a transparent and immutable record of ownership.
### Understanding Your Role and Responsibility As the creator and controller of a Smart Vault, your role encompasses managing the collateral, monitoring the health of your vault, and making informed decisions about your financial strategies within the protocol. The transferability feature via NFT keys adds a layer of flexibility, allowing you to manage your assets and control in a way that aligns with your financial goals and security preferences. By integrating Smart Vaults with Web3 wallets and employing NFT keys for transferability, TheStandard.io ensures that users enjoy a high degree of control, security, and flexibility, embodying the principles of autonomy and decentralization that are foundational to the DeFi ecosystem. # Supported Assets All these assets are able to be used in TheStandard Smart Vaults.
Token TickerToken Name
ETHEthereum
WETHWrapped Ether
WBTCWrapped Bitcoin
ARBArbitrum Token
LINKChainlink Token
PAXGPaxos Gold
GMXGMX exchange Token
RDNTRadient Token
SUSHISushi Swap Decentralized Exchange Token
You can swap most tokens on most chains and instantly bridge them to Arbitrum using our the widget within the DAPP\ For a full exsample on how to use the in dapp DEX please click here # Cross chain DEX How-to ## How to Use the LiFi Cross-Chain DEX Widget on TheStandard.io This guide will walk you through the process of using the LiFi cross-chain DEX widget on app.thestandard.io/dex. We'll use the example of exchanging SUSHI on Ethereum for WETH on Arbitrum. ### Step 1: Access the Exchange Interface Navigate to . You'll see an interface similar to Image 1, with options to select the tokens you want to exchange. ### Step 2: Select the Source Token (From) * Click on the "From" field .
* You'll see a list of popular tokens and chains.
* Scroll down or use the search bar to find the token you want to send. * Click on the token you want to send (In the image examples we are choosing SUSHI on Ethereum to select it as your source token. ### Step 3: Select the Destination Token (To) * After selecting your token, the interface will update.
* Click on the "To" field. * You'll see another list of tokens and chains.
* Find and select The token that you want to arrive on the Arbitrum network. * We are going to WETH. * So in this example we are sending SUSHI on ETH and WETH will arrive on Arbitrum. ### Step 4: Enter the Amount to Exchange * In the "Send" field, enter the amount of SUSHI you want to exchange (Image 5). * The interface will automatically calculate the amount of WETH you'll receive.
### Step 5: Review Exchange Details * The widget will display the best return for your exchange. * You'll see the exchange rate, estimated gas fees, and transaction time. * If you don't have enough funds, a warning will appear (as shown in Image 5). ### Step 6: Initiate the Exchange * If you're satisfied with the exchange details and have sufficient funds, click the "Review bridge" button. * You'll be prompted to confirm the transaction in your connected wallet. ### Step 7: Confirm the Transaction * In your wallet (e.g., MetaMask), review the transaction details. * Confirm the transaction and pay the associated gas fees. ### Step 8: Wait for Completion * The widget will show the progress of your transaction. * Cross-chain transactions may take several minutes to complete. * Once finished, you'll receive your WETH on the Arbitrum network. ### Important Notes: * Always double-check the token symbols and networks before confirming a transaction. * Cross-chain transactions may incur higher fees due to the complexity of bridging assets between networks. * Market conditions can change rapidly, so the final amount received may differ slightly from the initial estimate. * Ensure you have enough ETH in your wallet to cover gas fees on both networks. # Borrowing Process Borrowing USDs from The Standard is a straightforward process: 1. **Deposit Collateral**: Users begin by depositing their preferred collaterals into their Smart Vault. (All smart vaults are fully under the users control.) 2. **Collateral Evaluation**: The collateral is evaluated by the smart contracts using chainlinks decentralized price feeds. The Smart Vaults value is calculated based on current market prices collected by those chainlink price feeds. 3. **Mint USDs**: Users can then borrow USDs against their collateral, up to the maximum allowed based on the collateralization ratio of 110%. The borrowing is done at 0% interest. # Staking TST and USDs ### Staking Options: * Users can stake TST (The Standard Token) and/or USDs (The Standard's stablecoin). * Each token type offers different reward structures. ### TST Staking: * Rewards: * TST stakers earn USDs fees generated from borrowing and repayment activities in Smart Vaults. * TST stakers also receive the full 1% fee of all collateral placed into yield earning pools across the entire protocol. Reward Calculation: `(User's Staked TST * Days Staked) / (Total TST Staked * Current Staking Period Length)` ### USDs Staking: * Rewards: USDs stakers earn various assets, primarily generated from collateral placed into yield earning pools and collateral swaps executed within Smart Vaults. * Additional Rewards: The protocol may occasionally airdrop other reward assets to the staking reward pool. Reward Calculation: `(User's Staked USDs * Days Staked) / (Total USDs Staked * Current Staking Period Length)` ### Staking Process: 1: Users connect their wallet to the staking interface. 2: They choose the amount of TST and/or USDs to stake. 3: The staking period begins immediately upon successful staking transaction. ### Reward Accumulation: * Rewards accrue in real-time based on the user's stake and the duration of staking. * Users can view their projected rewards in the Staking dashboard at any time. ### Claiming Rewards: * Users can claim their rewards through the Staking dashboard. * When claiming, all non-USDs reward assets are transferred directly to the user's wallet. * For USDs rewards, users have two options: a) Compound: USDs rewards are automatically added to the user's USDs stake. b) Withdraw: USDs are transferred to the user's wallet along with other reward assets. ### Stake Management: #### Increasing Stake: * All previously earned rewards are claimed. * USDs rewards are automatically compounded (added to the stake). * The staking period restarts. #### Decreasing Stake: * All previously earned rewards are claimed without compounding USDs rewards. * The staking period restarts. ### Staking Period: * The staking period restarts whenever a user claims rewards or adjusts their stake amount. * This reset affects future reward calculations. ### No Token Burn: No TST or USDs is burned or spent by users when earning rewards. ### Security: The new Staking contract has been audited by independent security researcher MaslarovK. All identified vulnerabilities, both low and high risk, have been resolved. # Liquidity and Peg Stability Certainly! Here's a detailed write-up for the Liquidity and Peg Stability section: ## Liquidity and Peg Stability Maintaining the stability of USDs and ensuring deep liquidity are critical to the success of TheStandard protocol. We employ two key mechanisms to achieve these goals: the Global Borrowing Limit and strategically managed DEX Liquidity Pools. ### Global Borrowing Limit The Global Borrowing Limit is a crucial mechanism designed to maintain the stability of USDs and safeguard the protocol during its growth phases. This limit acts as a guardrail, specifically set up to help bootstrap the project towards "escape velocity" - a point where the protocol has sufficient liquidity and market adoption to function without such constraints. Key aspects of the Global Borrowing Limit: 1. Cap on Total Borrowing: It limits the total amount of USDs that can be borrowed across all Smart Vaults. This cap is set to be less than the available liquidity on decentralized exchanges (DEXs). 2. Weekly Adjustments: The limit is reviewed and potentially adjusted on a weekly basis, allowing for controlled growth of the USDs supply in line with increasing liquidity and demand. 3. Prevents Over-issuance: By restricting the total supply of USDs, we mitigate the risk of over-issuance that could lead to a de-peg event. 4. Supports Peg Stability: Ensures that there's always sufficient liquidity in DEX pools relative to the circulating supply of USDs, supporting the stability of the USDs-USD peg. 5. Temporary Measure: The Global Borrowing Limit is not a permanent feature. As the protocol matures and liquidity deepens, we plan to gradually increase and eventually remove this limit. The Global Borrowing Limit plays a vital role in TheStandard's controlled growth strategy, balancing the expansion of USDs supply with the protocol's ability to maintain its peg and provide sufficient liquidity. ### DEX Liquidity Pools TheStandard leverages concentrated liquidity pools on decentralized exchanges to ensure deep liquidity for USDs. This approach offers several advantages over traditional liquidity provision methods: 1. Concentrated Liquidity: We utilize Uniswap V3 concentrated liquidity pools, which allow liquidity providers to focus their capital within specific price ranges. This results in deeper liquidity at the most relevant price points, particularly around the $1 peg for USDs. 2. Dual Pool Strategy: We implement two types of liquidity pools to balance stability and yield opportunities: a) Correlated Stable Pools (e.g., USDs/USDC): * Offer consistent, lower-risk yield * Minimal impermanent loss risk * Provide deep liquidity to support the USDs peg b) Volatile Asset Pools (e.g., ETH/USDs, WBTC/USDs): * Offer potentially higher yields * Come with increased impermanent loss risk * Allow users to maintain exposure to volatile assets while providing liquidity 3. Flexible Collateral Allocation: Borrowers can choose how to allocate their collateral between these pool types, allowing them to balance their risk and reward profiles according to their individual strategies and market outlook.
1. Automated Liquidity Management: We use Gamma strategies for trustless liquidity management, optimizing returns without users surrendering control of their assets. 2. Incentivized Liquidity: TST stakers receive a share of the trading fees generated in these liquidity pools, creating an additional incentive for users to provide and maintain liquidity. 3. Peg Support: The deep liquidity in these pools, especially in the correlated stable pools, helps maintain the USDs peg by allowing for efficient arbitrage when the price deviates from $1. By leveraging these concentrated liquidity pools, TheStandard ensures that there's always sufficient liquidity for users to trade USDs, borrow against their collateral, or exit their positions when needed. This deep liquidity is crucial for maintaining the stability of USDs and the overall health of the protocol. The combination of the Global Borrowing Limit and our strategic use of DEX liquidity pools creates a robust framework for maintaining USDs peg stability and ensuring ample liquidity. This approach allows TheStandard to offer its innovative 0% interest borrowing while still ensuring the long-term sustainability and stability of the protocol. # DeFi and Liquidity Pools Explained An educational section that introduces users to DeFi, liquidity pools, and their importance. In the evolving landscape of finance, Decentralized Finance (DeFi) emerges as a revolutionary force, dismantling traditional financial barriers and offering an array of services directly on the blockchain. Central to the operations of DeFi are liquidity pools, mechanisms designed to foster a seamless trading, lending, and borrowing environment without the need for conventional intermediaries like banks. **The Essence of DeFi** DeFi, or Decentralized Finance, is a term that encapsulates various financial activities conducted on blockchain technology, aiming to decentralize access to financial services. By leveraging smart contracts on blockchains, primarily Ethereum, DeFi platforms enable users to lend, borrow, trade, and earn interest on their cryptocurrency holdings in a trustless manner, eliminating the need for traditional financial intermediaries. **Liquidity Pools Unveiled** At the core of many DeFi protocols are liquidity pools, which are tokens locked in a smart contract. These pools provide the liquidity necessary for the ecosystem, enabling token swaps, loans, and yield farming activities. Liquidity pools are pivotal because they allow decentralized trading, ensuring users can exchange tokens anytime without depending on a counterparty. Users who deposit their tokens into these pools, known as liquidity providers (LPs), earn fees generated from the trades executed against the liquidity they've provided, proportional to their stake in the pool. **TheStandard's Innovation in DeFi** TheStandard.io introduces a novel approach to DeFi borrowing, allowing users to earn an interest on collateral and then mint debt against those collateralized assets. This platform eliminates the traditional borrower-lender dynamic, allowing users to leverage their assets without relinquishing control. With a focus on over-collateralization, TheStandard.io ensures a secure and flexible borrowing experience. # How to Deposit Collateral # Collateralization Ratio ## Collateralization Ratio: The Backbone of TheStandard's Stability ### What is the Collateralization Ratio? The collateralization ratio is a fundamental concept in decentralized finance (DeFi) that ensures the stability and security of borrowed assets. In simple terms, it's the ratio of the value of collateral deposited to the value of assets borrowed. In TheStandard protocol, we maintain a single, straightforward collateralization ratio: **110% for 0% interest borrowing** This means that for every 100 units of stablecoin borrowed, users must deposit at least 110 units worth of collateral. ### Why is the Collateralization Ratio Important? 1. **Security**: It ensures that borrowed assets are always backed by more value than what's been lent out. 2. **Stability**: It helps maintain the peg of our stablecoin by ensuring there's always enough collateral to back it. 3. **Trust**: Users can verify the collateralization on-chain, providing transparency and confidence in the system. ### TheStandard vs. Traditional Banking Here's where TheStandard truly shines: * **Traditional Banking**: The legacy central banking system is primarily backed by confidence. There's no mathematical proof or guarantee that your deposits are fully backed. * **TheStandard Protocol**: We ensure that there is always mathematically provable collateral of at least 110% backing all stablecoins in circulation. This isn't just a promise – it's verifiable on the blockchain. ### The Reality of Overcollateralization While our minimum collateralization ratio is 110%, the actual average ratio in the system is typically much higher: **Current Average Collateralization: Approximately 300%** This high level of overcollateralization occurs because: 1. Users are cautious and prefer to maintain a safety buffer above the minimum ratio. 2. It provides protection against market volatility. 3. Higher collateralization can offer users more borrowing flexibility. This means that in reality, for every 100 units of stablecoin in circulation, there's often around 300 units worth of collateral backing it. This extra layer of security further strengthens the stability and reliability of TheStandard protocol. ### Conclusion TheStandard's 110% collateralization ratio for 0% interest borrowing offers a unique blend of security and opportunity. By ensuring that all borrowed assets are always overcollateralized and verifiable on-chain, we provide a level of transparency and stability that traditional financial systems simply can't match. The fact that users typically maintain even higher collateralization ratios demonstrates the community's commitment to the protocol's health and stability. This collective behavior further reinforces the robustness of TheStandard ecosystem, making it a secure and attractive platform for DeFi participants. # Managing Your Debt Waiting for the new front end so that we can show screen grabs and walk through the processes. # Stable Pools vs. Volatile Pools # Impermanent Loss (Risks and Rewards) # Optimizing Your Yield # What is TST? ## What is TST? TST (The Standard Token) is the dynamic utility and governance token powering The Standard Protocol ecosystem. It's not just a token – it's your key to actively shaping the future of decentralized finance. By participating in the TST ecosystem, you're not just holding a token; you're becoming part of a revolutionary movement in DeFi. ### Key Features of TST #### 1. Active Governance Participation TST empowers you to have a real voice in the protocol's future: * Propose groundbreaking upgrades and parameter changes * Cast your vote on crucial decisions that steer the protocol's direction * Directly influence the evolution of The Standard Protocol #### 2. Work to Earn: Staking Rewards By actively working to stake TST, you're rewarded for your contribution to the protocol's health: * Earn a share of fees generated from borrowing activities * Receive a portion of all collateral used in yield pools * Participate in future liquidation rewards * Benefit from various protocol-generated revenues The more you participate, the more you can earn! #### 3. Expanding Protocol Utility TST is your Swiss Army knife in The Standard ecosystem: * Enjoy potential fee discounts for active participation (planned feature) * Exercise your voting power to shape the protocol * Participate in smart vault liquidations (upcoming feature) #### 4. Value Accrual Through Protocol Growth As you contribute to growing The Standard Protocol, you can benefit from: * Strategic buybacks and burns, potentially increasing TST scarcity * Enhanced staking rewards as the protocol expands ### Tokenomics: The Foundation of TST's Value Understanding the tokenomics of TST is crucial for appreciating its role and potential within The Standard Protocol ecosystem. #### Total Supply The total supply of TST is fixed at 1,000,000,000 (1 billion) tokens. This fixed supply ensures scarcity and provides a clear framework for token distribution and circulation. For a comprehensive breakdown of the tokenomics, please refer to our [detailed Tokenomics document.](https://thestandarddao.notion.site/TST-Tokenomics-Overview-bb86eef571954578b24afb0bcd87cdb5) #### Distribution The distribution of TST has been carefully designed to ensure a fair and community-centric allocation: All aspects are written and up to date in this document please refer to our [detailed Tokenomics document.](https://thestandarddao.notion.site/TST-Tokenomics-Overview-bb86eef571954578b24afb0bcd87cdb5) #### Vesting Schedule To align long-term interests and ensure sustainable growth, various vesting schedules have been implemented: * **Pre-Seed Participants**: 48-month vesting schedule, starting from September/October 2021. * **Seed Participants**: 12-month vesting schedule for different rounds, with some portions available instantly. * **Advisory Board**: 24-month vesting schedule for most advisors, starting from various dates in 2021 and 2022. * **Team and Development Fund**: Subject to vesting to ensure long-term commitment and alignment with the protocol's success. These vesting schedules are designed to: 1. Prevent large sell-offs that could destabilize the token price. 2. Ensure that key stakeholders remain committed to the project's long-term success. 3. Align the release of tokens with the project's development milestones. ### Join the TST Ecosystem Exciting ways to acquire and engage with TST: 1. [Trade on popular DEXs like Uniswap (Ethereum and Arbitrum)](https://app.paraswap.xyz/#/swap/0xEeeeeEeeeEeEeeEeEeEeeEEEeeeeEeeeeeeeEEeE-0xf5a27e55c748bcddbfea5477cb9ae924f0f7fd2e/1/SELL?version=6.2\&network=arbitrum) 2. Stay tuned for upcoming centralized exchange listings 3. Dive into protocol governance and development – check out bounties on our Discord! 4. Participate in our liquidity mining programs through MERKL rewards ### The Future is Bright: Upcoming Developments We're continuously innovating to enhance TST's utility: * Revolutionary governance mechanisms in the pipeline * Expanding staking benefits to reward active participants * Forging strategic integrations with leading DeFi protocols * Pioneering cross-chain functionality for broader accessibility ### TST: The Heartbeat of The Standard Ecosystem TST is more than a token – it's the driving force behind The Standard Protocol. By actively participating in the TST ecosystem, you're not just benefiting from the protocol's success; you're actively contributing to building the future of decentralized finance. Holding and working with TST gives you the power to shape the protocol's future and reap the rewards of your involvement. As The Standard Protocol grows, so does the potential of TST. Join us in revolutionizing DeFi – your participation matters! # How to Stake TST ## NOTE: Updated Docs coming soon. Please [discuss this in our Discord for now](https://discord.gg/thestandard-io-836907456743079956) ### Staking Options: * Users can stake TST (The Standard Token) and/or USDs (The Standard's stablecoin). * Each token type offers different reward structures. ### TST Staking: * Rewards: * TST stakers earn USDs fees generated from borrowing and repayment activities in Smart Vaults. * TST stakers also receive the full 1% fee of all collateral placed into yield earning pools across the entire protocol. Reward Calculation: `(User's Staked TST * Days Staked) / (Total TST Staked * Current Staking Period Length)` ### USDs Staking: * Rewards: USDs stakers earn various assets, primarily generated from collateral placed into yield earning pools and collateral swaps executed within Smart Vaults. * Additional Rewards: The protocol may occasionally airdrop other reward assets to the staking reward pool. Reward Calculation: `(User's Staked USDs * Days Staked) / (Total USDs Staked * Current Staking Period Length)` ### Staking Process: 1: Users connect their wallet to the staking interface. 2: They choose the amount of TST and/or USDs to stake. 3: The staking period begins immediately upon successful staking transaction. ### Reward Accumulation: * Rewards accrue in real-time based on the user's stake and the duration of staking. * Users can view their projected rewards in the Staking dashboard at any time. ### Claiming Rewards: * Users can claim their rewards through the Staking dashboard. * When claiming, all non-USDs reward assets are transferred directly to the user's wallet. * For USDs rewards, users have two options: a) Compound: USDs rewards are automatically added to the user's USDs stake. b) Withdraw: USDs are transferred to the user's wallet along with other reward assets. ### Stake Management: #### Increasing Stake: * All previously earned rewards are claimed. * USDs rewards are automatically compounded (added to the stake). * The staking period restarts. #### Decreasing Stake: * All previously earned rewards are claimed without compounding USDs rewards. * The staking period restarts. ### Staking Period: * The staking period restarts whenever a user claims rewards or adjusts their stake amount. * This reset affects future reward calculations. ### No Token Burn: No TST or USDs is burned or spent by users when earning rewards. ### Security: The new Staking contract has been audited by independent security researcher MaslarovK. All identified vulnerabilities, both low and high risk, have been resolved. # Staking Rewards and Benefits ## TST Staking Rewards and Benefits: Unlocking Massive Potential Staking TST isn't just about participating in governance – it's your gateway to a world of substantial rewards and benefits. As TheStandard protocol grows, so does the potential for stakers to reap impressive returns. Let's dive into the exciting sources of staking rewards that make TST a powerhouse in the DeFi space! All fees taken through the entire protocol get sent to the TST staking pool and distributed to the stakers. If you hold 5% of the pool then you will receive 5% of all fees collected globally. Bellow are the revenue streams that are collected ### Diverse Streams of Revenue #### 1. Borrowing Fee Share * Everytime someone mints a new debt they pay a minting fee of 0.5 - 5% . This is a variable fee that is sometimes high and sometimes low. Designed to slow borrowing by being able to wrench it up when needed. * The Fee is taken as USDs and added to the debt, so if someone mints a 1000 USDs debt then they will owe $1,010. That extra 10 USDs gets dropped into the staking pool. * As lending volume grows, so do your rewards! #### 2. Collateral Yield Rewards 🌱 * Everyone that places collateral into the yield pool will pay 1% of that collateral as a fee when they withdraw from the yield pool. So if a user places $10,000 worth of ETH into the yield pool and after a year they have $12,000 and choose to withdraw from the yield pool you will pay $120 worth of ETH to TST stakers. When billions of dollars are placed into TheStandard, this will be a substantial reward. #### 3. Trading Fee Revenue 📊 * When a user has collateral in their smart vault not earning a yield but simply sitting in the smart vault, users can choose to trade their collateral to another asset without closing their debt. * Capture a portion of the fees from in-protocol asset swaps and trades * High trading volume could lead to significant rewards for stakers #### 4. Liquidation Fees (Coming Soon) ⚡ * Participate in the liquidation process and earn fees from liquidated positions * This could be a major source of rewards during volatile market conditions #### 5. Cross-Chain Transaction Fees 🌉 * As TheStandard expands to multiple chains, earn from cross-chain transaction fees * The growth of cross-chain DeFi could drive massive fee generation ### 🚀 Compounding Growth Potential The beauty of TheStandard's reward system lies in its potential for exponential growth: * As more users join the protocol, more fees are generated * Increased fees attract more stakers, further securing the network * A more secure network attracts more users, creating a virtuous cycle of growth This compounding effect could lead to staking rewards that outpace traditional yield-generating assets! ### 🎁 Additional Benefits for Stakers #### 1. Boosted Borrowing Power 💪 * Stakers may receive preferential collateralization ratios, allowing you to borrow more against your assets #### 2. Fee Discounts 💰 * Enjoy reduced fees on various protocol actions, increasing your overall returns #### 3. Early Access to New Features 🎭 * Be among the first to try out new protocol features and products #### 4. Exclusive Governance Rights 🏛️ * Shape the future of TheStandard with enhanced voting power on crucial decisions ### 🌟 The Future is Bright As TheStandard continues to innovate and expand, the potential for staking rewards is truly exciting. With multiple revenue streams, compounding growth mechanics, and additional benefits, TST staking stands poised to offer some of the most attractive returns in the DeFi space. Remember, the earlier you stake, the more you stand to gain as the protocol grows. Don't miss out on this opportunity to be part of something massive! # The Role of the DAO ## The Role of the DAO in TheStandard Protocol The Decentralized Autonomous Organization (DAO) is the beating heart of TheStandard's governance system. It embodies the core principles of decentralization and community-driven decision-making that are fundamental to the ethos of DeFi. Let's explore the critical role the DAO plays in shaping and steering TheStandard protocol. ### What is TheStandard DAO? TheStandard DAO is a decentralized governance structure that allows TST token holders to collectively manage and evolve the protocol. While in the beginning it is being engineered by a small core group, the ultimate goal is that the protocol is not controlled by any single entity but instead operates based on the collective decisions of its members / users. ### Key Responsibilities of the DAO #### 1. Protocol Upgrades and Enhancements * Proposing and voting on protocol upgrades * Implementing new features or modifying existing ones * Ensuring the protocol remains competitive and at the forefront of DeFi innovation #### 2. Risk Management * Setting and adjusting key protocol parameters (e.g., collateralization ratios, liquidation thresholds) * Implementing and modifying risk mitigation strategies * Overseeing the overall health and stability of the protocol #### 3. Treasury Management * Allocating funds for development, marketing, and other initiatives * Managing the protocol's assets to ensure long-term sustainability * Deciding on potential investments or partnerships #### 4. Community Initiatives * Funding grants for developers and contributors * Organizing and supporting community events and education programs * Fostering ecosystem growth through various initiatives #### 5. Token Economics * Proposing and implementing distribution of TST * Managing token supply through mechanisms like buybacks or burns * Deciding on new utility features for the TST token ### How the DAO Operates 1. **Proposal Submission**: Any TST holder can submit a proposal for consideration by the DAO. 2. **Discussion Period**: The community discusses and debates proposals in dedicated forums. 3. **Voting**: TST holders vote on proposals, with voting power proportional to their TST holdings or stake. 4. **Execution**: If a proposal passes, it's implemented by the protocol's smart contracts or the development team. NOTE: There is current;y no receipt token (stTST) for staked TST that users can vote with. So if you are wanting to vote then you will have to unstake your TST > Vote and then restake your TST. This should not take long and voters will generally not miss out on rewards if done quickly. ### The Importance of the DAO 1. **Decentralization**: Ensures no single entity has unilateral control over the protocol. 2. **Community Alignment**: Aligns the protocol's development with the interests of its users and token holders. 3. **Transparency**: All decisions and their rationales are publicly visible and verifiable on-chain. 4. **Adaptability**: Allows the protocol to evolve and adapt quickly to market changes and user needs. 5. **Security**: Collective decision-making can help identify and mitigate potential risks or vulnerabilities. ### Participating in the DAO Participation in TheStandard DAO is open to all TST holders. By staking TST and actively engaging in governance, you can: * Have a direct say in the future of the protocol * Contribute to the growth and success of TheStandard ecosystem * Potentially earn additional rewards for active participation ### The Future of TheStandard DAO As the protocol grows, the role of the DAO will continue to expand and evolve. Future developments may include: * More sophisticated voting mechanisms and on-chain automatic treasury managment. * Delegation systems for more efficient governance * Integration with other DAOs in the DeFi ecosystem for cross-protocol collaboration By participating in TheStandard DAO, you're not just using a DeFi protocol – you're becoming an integral part of its governance and future. This is your opportunity to shape the future of decentralized finance! # How Voting Works ## How Voting Works in TheStandard Protocol Participating in the governance of TheStandard protocol will be a key right and responsibility of TST holders. Understanding the voting process is crucial for effective participation. Here's a comprehensive guide on how voting works in our ecosystem. ### Voting Platform: Snapshot TheStandard uses Snapshot, a popular off-chain voting system, for all governance votes. Here's why: 1. **Gas-free voting**: Snapshot allows TST holders to vote without paying gas fees, making participation more accessible. 2. **Decentralized**: Snapshot is a decentralized platform, aligning with our commitment to decentralization. 3. **Transparent**: All votes are publicly visible, ensuring transparency in the governance process. 4. **Flexible**: Snapshot supports various voting strategies, allowing for nuanced governance decisions. ### The Voting Process 1. **Proposal Creation**: Eligible TST holders can create proposals on Snapshot. 2. **Discussion Period**: Before voting begins, proposals are discussed on Discord (more on this below). 3. **Voting Period**: TST holders cast their votes on Snapshot during the designated voting period. 4. **Vote Counting**: Votes are tallied automatically by Snapshot. 5. **Implementation**: If a proposal passes, it moves to the implementation phase. ### Voting Power Your voting power is determined by your TST holdings. The more TST you hold, the more influence you have in governance decisions. ### Types of Votes 1. **Single Choice**: Vote for one option among several. 2. **Approval**: Vote for multiple options you approve of. 3. **Ranked Choice**: Rank options in order of preference. 4. **Quadratic Voting**: A more nuanced voting system that may be implemented in the future. ### Discussion Forum: Discord While voting takes place on Snapshot, all pre-vote discussions happen on our Discord server: 1. **Dedicated Channels**: We have specific channels for governance discussions. 2. **Community Feedback**: Proposal creators can gather feedback and refine their proposals. 3. **Expert Input**: Core team members and community experts can provide insights. 4. **Informal Polls**: We may use Discord polls to gauge initial community sentiment. ### Future Plans: Self-Hosted Forum We're committed to continual improvement of our governance process. In the future, we plan to transition to a self-hosted forum for governance discussions. This move will offer: 1. **Greater Control**: We can tailor the forum to our specific needs. 2. **Enhanced Organization**: Better categorization and searchability of discussions. 3. **Integration**: Potential for tighter integration with our voting system. 4. **Accessibility**: A more open platform for those who prefer not to use Discord. 5. Indexed and searchable on the open internet. ### Best Practices for Voters 1. **Stay Informed**: Regularly check the Discord governance channels and Snapshot for new proposals. 2. **Participate in Discussions**: Share your thoughts and concerns during the discussion phase. 3. **Research Thoroughly**: Understand the full implications of each proposal before voting. 4. **Vote Consistently**: Regular participation ensures your voice is heard in shaping the protocol. ### Conclusion Voting is the cornerstone of our decentralized governance model. By participating in votes, you directly influence the future of TheStandard protocol. Whether you're a large TST holder or a smaller stakeholder, your voice matters in our ecosystem. Remember, with great power comes great responsibility. Stay engaged, vote wisely, and help us build the future of decentralized finance together! # Submitting Proposals ## Submitting Proposals in TheStandard Protocol Submitting proposals is a key way for community members to actively shape the future of TheStandard protocol. Currently, we use Discord as our primary platform for proposal submissions and discussions. Here's a comprehensive guide on how to submit and manage your proposals. ### Current Proposal Submission Process #### Step 1: Join Our Discord If you haven't already, [join TheStandard's Discord server](https://discord.gg/thestandard-io-836907456743079956). This is where all initial proposal discussions take place. #### Step 2: Navigate to the Proposals Channel Head to our dedicated proposals channel: This channel is specifically for proposal submissions and related discussions. #### Step 3: Draft Your Proposal Before posting, draft your proposal carefully. A well-structured proposal should include: * **Title**: A clear, concise title that summarizes your proposal * **Summary**: A brief overview of what you're proposing * **Motivation**: Why this proposal is important for TheStandard * **Specification**: Detailed description of what you're proposing * **Benefits**: Expected positive outcomes * **Potential Drawbacks**: Any potential risks or negative consequences * **Timeline**: Proposed implementation timeline, if applicable #### Step 4: Post Your Proposal Share your drafted proposal in the designated Discord channel. This initiates the community discussion phase. #### Step 5: Engage in Discussion * Be prepared to answer questions and address concerns from community members * Be open to feedback and suggestions for improving your proposal * Actively participate in the discussion to refine and strengthen your proposal #### Step 6: Refine Your Proposal Based on community feedback, you may need to revise and refine your proposal. This iterative process helps ensure that the final proposal is robust and well-considered. #### Step 7: Formal Submission Once your proposal has been thoroughly discussed and refined, it may be moved to a formal vote on Snapshot. This step typically involves coordination with TheStandard's core team. ### Best Practices for Proposal Submission 1. **Research Thoroughly**: Ensure your proposal doesn't duplicate existing features or previously rejected ideas. 2. **Be Clear and Concise**: While details are important, make sure your main points are easy to understand. 3. **Consider All Stakeholders**: Think about how your proposal affects different users of the protocol. 4. **Be Responsive**: Actively engage with comments and questions about your proposal. 5. **Be Patient**: The discussion and refinement process can take time. This thoroughness is crucial for good governance. 6. **Seek Support**: If you're unsure about aspects of your proposal, don't hesitate to ask for help from more experienced community members. ### Future Plans We're constantly working to improve our governance processes. In the future, we plan to implement a more structured proposal submission system, potentially including: * A dedicated web portal for proposal submissions * Standardized proposal templates * An integrated system for proposal tracking from submission to implementation Stay tuned for announcements about these improvements! # Audits and Safety Measures ## Code Audits and Security Measures in TheStandard Protocol At TheStandard, we prioritize the security and reliability of our smart contracts above all else. To ensure the highest level of security, we employ a multi-layered auditing approach, leveraging the expertise of three distinct and highly respected auditing entities. This comprehensive strategy allows us to benefit from diverse perspectives and methodologies, significantly enhancing our ability to identify and address potential vulnerabilities. Past Audits {% embed url="" %} [Latest CodeHawks Audit ](https://codehawks.cyfrin.io/c/2023-12-the-standard) ([here is the github for this Audit](https://github.com/Cyfrin/2023-12-the-standard)) [Latest Rezolv Audit](https://github.com/kristiyanmaslarov/Audits/blob/main/PrivateAudits/TheStandard-security-review.pdf) [Latest Cyfrin Audit](https://cdn.discordapp.com/attachments/948523533653405737/1295293460458242069/2024-09-13-cyfrin-the-standard-smart-vault-v2.0.pdf?ex=67116b4a\&is=671019ca\&hm=d4d72c3c91f59b409a627d303fbdb717cf7bdd4a5bcea366a5b79ab2db577a23&) ### Our Auditing Partners #### 1. Code Hawks: Crowd-Sourced Security Expertise Code Hawks represents a revolutionary approach to smart contract auditing: * **Competitive Auditing**: Hundreds of white hat hackers compete to find vulnerabilities in our smart contracts. * **Bounty System**: Rewards are offered for discovering vulnerabilities, incentivizing thorough and creative security testing. * **Diverse Perspectives**: The crowd-sourced nature ensures our contracts are examined from multiple angles and expertise levels. * **Continuous Improvement**: Regular competitions keep our security measures up-to-date with the latest threats and techniques. #### 2. Cyfrin: Elite Smart Contract Auditing Cyfrin stands at the forefront of professional smart contract auditing: * **Senior Engineer Team**: Comprised exclusively of senior engineers, ensuring top-tier expertise. * **Chainlink Heritage**: Founded by early Chainlink engineers, bringing deep blockchain and oracle knowledge. * **Comprehensive Approach**: Known for their thorough and meticulous auditing process. * **Industry Leaders**: Recognized as one of the best in the field, despite higher costs. * **Proactive Security**: Their expertise helps us anticipate and prevent potential security issues before they arise. #### 3. Rezolv: Specialized Smart Contract Security Rezolv brings specialized expertise in smart contract security: * **Focused Expertise**: Specializes specifically in smart contract security auditing. * **Proven Track Record**: Distinguished themselves in the Code Hawks competitive audit by identifying critical vulnerabilities others missed. * **Comprehensive Services**: Offers a range of services aimed at enhancing both security and performance of smart contracts. * **Solution-Oriented**: Not only identifies vulnerabilities but also provides actionable solutions to address them. * **Continuous Partnership**: Ongoing relationship ensures our contracts remain secure as we evolve and expand. ### Our Audit Process Depending on the upgrade the DAO is rolling out, they will choose wich auditors to use. 1. **Initial Development**: Our team develops smart contracts with security best practices in mind. 2. **Internal Review**: Rigorous internal testing and review processes. Get a quote on wich Auditor to use for the upgrade that is rolling out. 1. **Code Hawks Competition**: Crowd-sourced audit to catch a wide range of potential issues. 2. **Cyfrin Audit**: Comprehensive professional audit by senior engineers. 3. **Rezolv Specialized Review**: Focused security audit with emphasis on critical vulnerabilities. **Resolution and Re-testing**: Any identified issues are resolved and the contracts are re-tested. **Ongoing Monitoring**: Continuous security checks and updates as needed. ### Commitment to Transparency We are committed to full transparency in our security processes: * All audit reports are made publicly available. * Any significant findings and their resolutions are communicated to the community. * We maintain an open bug bounty program for ongoing vulnerability reporting. # All About Liquidation ## What Happens during Liquidations? TheStandard's main goal is to always have more value locked up as collateral than the value of loans given out. We call this being "provably overcollateralized." Here's how it works: When you borrow from TheStandard, you need to put in more collateral than you borrow. For every 100 USDs borrowed, you must put in at least $110 worth of collateral. We call this the "110% collateralization ratio." Sometimes, the value of the collateral can drop, which is where liquidations come in. If the collateral value falls below $110 for every 100 USDs borrowed, the position can be liquidated. A liquidator pays off the debt (the borrowed USDs) and gets to keep the collateral. For example, if you borrowed 100 USDs with $120 of ETH as collateral, and the ETH value drops to $105, a liquidator could pay your 100 USDs debt and receive your $105 of ETH. This process ensures that all USDs in circulation are always backed by more real value in collateral, maintaining the stability and integrity of the entire system. ### The Importance of Liquidations Liquidations serve several critical functions: 1. **Maintaining Overcollateralization**: They ensure that the total value of collateral in the system always exceeds the value of borrowed assets. 2. **Protecting the Protocol**: By quickly addressing underwater positions, liquidations safeguard the protocol's overall health. 3. **Ensuring Stablecoin Stability**: Liquidations help maintain the peg of our stablecoin by ensuring it's always backed by sufficient collateral. ### Understanding Collateralization Ratio Before diving into liquidations, it's crucial to understand the collateralization ratio: * TheStandard requires a minimum collateralization ratio of 110%. * This means for every 100 USDs borrowed, users must provide at least $110 worth of collateral. * If the value of the collateral falls below this threshold, the position becomes eligible for liquidation. ### The Liquidation Process When a vault's collateralization ratio falls below 110%, it triggers the liquidation process: 1. The vault is flagged for liquidation. 2. Liquidators repay the vault's debt (in USDs). 3. In return, liquidators receive 110% of the debt value in collateral. **Example:** * A vault has 100 USDs debt and $110 worth of ETH as collateral. * If ETH price drops and the collateral is now worth only $105, the vault is undercollateralized. * A liquidator repays the 100 USDs debt. * The liquidator receives $110 worth of ETH (at current prices), making a profit. This process ensures that USDs are removed from circulation (burned) when collateral value decreases, maintaining the protocol's integrity. ### Evolution of Liquidations in TheStandard #### Version 3: Liquidation Pools * Utilized a complex system of liquidation pools. * Proved to be overly complex and gas-intensive due to on-chain filtering and distribution of multiple assets. #### Version 4 (Current): Centralized Liquidations * TheStandard core team manages an internal process to liquidate undercollateralized vaults. * This temporary solution ensures protocol stability while we develop a more decentralized approach. #### Version 4.1 (Upcoming): Decentralized Automated Liquidations * Will leverage Chainlink Automations and other technologies for on-chain liquidations. * Aims to adhere to TheStandard's goal of maximum decentralization. * Will reintroduce the ability for TST stakers to participate in and benefit from liquidations. ### Benefits for TST Holders One constant across all versions: TST holders are the ultimate beneficiaries of liquidations. * In V4.1, TST stakers will have the opportunity to participate directly in liquidations. * Profits from liquidations flow back to TST stakers, enhancing the token's value proposition. ### Conclusion Liquidations are a critical mechanism in TheStandard protocol, ensuring its stability, integrity, and overcollateralization. While our approach to liquidations has evolved to address technical challenges, our commitment to benefiting TST holders remains unwavering. As we move towards Version 4.1, we're excited to reintroduce a fully decentralized, efficient liquidation process that aligns with our core principles and provides additional value to our TST stakers. Stay tuned for updates as we continue to refine and improve this crucial aspect of our protocol! # Upcoming Features **Decentralized Front Ends (Coming Soon)** * **Smart Debt Management**: A forthcoming feature (planned for V4.1) will allow smart vaults to monitor the price of USDs. If the price drops below a certain threshold, the smart vault can automatically use collateral to buy USDs at a discount to reduce or clear the debt. This mechanism benefits the user by reducing their debt at a lower cost and supports the stablecoin's stability by adding buying pressure. * **Empowering Community Development**: In the near future, TheStandard.io will release a free SDK along with React components, enabling anyone to develop and deploy their own front-end interfaces for the platform. This initiative aims to foster innovation and customization within the DeFi borrowing ecosystem. * **Monetization Opportunities**: Builders creating their own white-label interfaces will have the opportunity to add a fee mechanism. This fee will serve as a revenue stream, rewarding them each time users mint debt through their customized interface. This feature not only democratizes the development of DeFi borrowing solutions but also incentivizes community contributions to TheStandard.io's ecosystem. By introducing decentralized front ends and providing the tools necessary for community-led development, TheStandard.io is paving the way for a more inclusive, customizable, and user-centric DeFi borrowing platform. This approach ensures that TheStandard.io remains at the forefront of innovation, catering to a diverse range of user needs and preferences. These features underscore TheStandard.io's commitment to innovation in the DeFi yield and borrowing space, offering users unprecedented control, flexibility, and opportunities to optimize their financial strategies. # Press Kit For our latest press kit please see the notion link below. # Troubleshooting Guide # Frequently Asked Questions # Community Resources Here are our Communities and Socials ### Social Media Channels: Twitter: Youtube: Facebook: LinkedIn: Medium: Reddit: Instagram: {% embed url="" %} # Developer Documentation A white-label version of the front-end interface has been developed by the DAO and will be fully released once the referral system has been implemented. This system will enable anyone to run a front end that will interface to TheStandard smart contracts further decentralizing the protocol. \ \ The referral system will enable people hosting a front end to earn from anyone using TheStandard through their hosted interface. Hosts will be able to determine their own fee structure. # What is Arbitrum one? #### Arbitrum and TheStandard [**Arbitrum**](https://arbitrum.io/) **one** is an Ethereum Layer 2 scaling solution designed to enhance the Ethereum network through increased transaction speeds and lower costs. It leverages optimistic rollups to process many transactions off-chain, while still benefiting from Ethereum's security.\ \ NOTE: Arbitrum have another L2 blockchain called Arbitrum NOVA which is focused on web3 gaming. TheStandard does not support NOVA, the protocol only supports "Arbitrum ONE"!
**Benefits of Arbitrum one:** * **Scalability**: Processes up to 40,000 transactions per second. * **Cost-Efficiency**: Significantly reduces gas fees compared to Layer 1. * **Security**: Secured by Ethereum's underlying infrastructure. **TheStandard's Choice**: TheStandard opted for Arbitrum due to these enhanced scalability and cost benefits, which align with their goal to provide a seamless and financially efficient platform. Building on Arbitrum allows TheStandard to offer users fast and secure operations, while offering the security that Ethereum offers as a base layer. # Adding Arbitrum one This guide will explain how to connect your web3 wallet, in particular MetaMask to the Arbitrum network\ TheStandard is currently only available on the Arbitrum blockchain (Full blockchain name is Arbitrum One). Arbitrum is a layer 2 to Ethereum so you will still have the full security of the ethereum blockchain but without the massive transaction fees. Before engaging with TheStandard.io, you'll need to add the Arbitrum network to your MetaMask. ### Step1: Setting Up Your Wallet 1. **Download MetaMask**: If you haven't already, download and install the MetaMask extension for your browser from the [official MetaMask website](https://metamask.io/). MetaMask is available for Chrome, Firefox, Brave, and Edge browsers. 2. **Create Your Wallet**: Follow the on-screen instructions to create a new wallet. Remember to safely store your seed phrase. 3. **Connect to TheStandard.io**: Visit TheStandard.io and click on the "Connect Wallet" button on the homepage. Choose MetaMask or your preferred Web3 wallet from the list of options. ### Step2: **Adding Arbitrum to MetaMask** TheStandard is currently only available on the Arbitrum blockchain. Arbitrum is a layer 2 to Ethereum so you will still have the full security of ethereum but without the massive transaction costs. Before engaging with TheStandard.io, you'll need to add the Arbitrum network to your MetaMask to interact with the decentralized app. **Manual Configuration:** 1. **Open MetaMask**: Click on the network selection dropdown at the top of the MetaMask app. 2. **Add Network**: Select "add network" "Custom RPC" from the dropdown list. 3. **Enter Arbitrum Network Details**: Input the Arbitrum network settings. You can find the most current Arbitrum network details on the official Arbitrum documentation. Typically, you'll need to enter the Network Name (Arbitrum One), New RPC URL, Chain ID (42161), Currency Symbol (ETH), and Block Explorer URL. 4. **Save and Switch**: Click "Save," and MetaMask will automatically switch you to the Arbitrum network.
**Using Chainlist.org:** Using chainlist.org is a great way to ensure you get connected to the fastest arbitrum node. It's a very good service for adding new networks to your metamask or web3 wallet. 1. **Visit Chainlist**: Go directly to [Chainlist.org](https://chainlist.org/?search=arbitrum). 2. **Connect Your Wallet**: Find "Arbitrum One" box in the list and click the corresponding "Connect Wallet" button. This will prompt MetaMask to add the Arbitrum network automatically. ### Step3: **Adding Arbitrum to MetaMask**

#### # Bridging crypto to Arbitrum ## How to Load Crypto on a Fresh Arbitrum Wallet Using TheStandard DEX Widget Welcome to the exciting world of decentralized finance (DeFi)! If you're new to the space, one of the first steps you'll need to take is setting up a wallet on the Arbitrum network. Arbitrum is a Layer 2 network on top of Ethereum. This means it's far cheaper to do things, but it keeps the security of Ethereum. This article will guide you through loading cryptocurrency onto a fresh Arbitrum wallet, emphasizing the importance of having ETH for gas fees and interacting with smart contracts like TheStandard. We'll also introduce you to TheStandard DEX widget, powered by LI.FI, for seamless cross-chain swapping. ### Step 1: Set Up Your Arbitrum Wallet Before you can load crypto onto your Arbitrum wallet, you need to have one set up. If you haven't already, create a wallet using a reputable service like MetaMask. Once your wallet is set up, make sure to add the Arbitrum network to it. You can find the network details on the official Arbitrum website or through your wallet provider. ### Step 2: Transfer ETH to Your Arbitrum Wallet ETH is the native currency of the Ethereum network, and it's also required for gas fees on the Arbitrum network. Before transferring any other cryptocurrencies, sending some ETH to your Arbitrum wallet is crucial. This will ensure you have the necessary funds to pay transaction fees and interact with smart contracts like TheStandard. You can use a centralized exchange (CEX) or a decentralized exchange (DEX) that supports the Arbitrum network to transfer ETH. Withdraw ETH from the exchange to your Arbitrum wallet address. Make sure to double-check the address before confirming the transaction. We recommend using a decentralized exchange. The good news is that we have one directly on [https://app.TheStandard.io/dex](https://app.thestandard.io/dex) that enables you to trade coins and any coin on any network across to any other coin on another! Welcome to the FUTURE!!!! ### Step 3: Use TheStandard DEX Widget for Cross-Chain Swapping Head over to [TheStandard DEX](https://app.thestandard.io/dex) for cross-chain swapping. This allows you to seamlessly swap assets between different chains without leaving the comfort of TheStandard's web app. Here's how to use it: 1. **Access the Widget:** Navigate to TheStandard's web app and locate TheStandard DEX widget. 2. **Select Origin Chain:** Choose the blockchain network where your assets are currently held. This is the chain you'll be sending assets from. 3. **Select Asset to Send:** Pick the cryptocurrency you want to bridge from the origin chain. This is the asset you'll be swapping or sending to another chain. 4. **Select Destination Chain:** Choose the chain you want to send your assets to. In this case, select Arbitrum. 5. **Choose Destination Asset:** If you don't already have ETH in your Arbitrum wallet, selecting ETH as your destination asset is recommended. This ensures you have the necessary gas fees for future transactions on Arbitrum. 6. **Review and Confirm:** Check the details of your transaction, including the assets, amounts, and estimated fees. Confirm the transaction if everything looks correct. 7. **Approve and Complete:** Your wallet (e.g., MetaMask) may prompt you to switch chains to the origin chain and sign a transaction. It might then ask you to switch back to Arbitrum to sign another transaction. This depends on whether the DEX performs the swap on the originating or destination chain. **Congratulations, you're done!** You've successfully bridged assets to your Arbitrum wallet. Now, you can send collateral to your smart vault and borrow at 0% interest against it. Always ensure you have a small amount of ETH in your wallet for gas fees, and double-check your transactions for accuracy. Happy swapping and borrowing! ### Important Tips: * **Always Have Some ETH:** Ensure you have a small amount of ETH in your Arbitrum wallet to cover gas fees for future transactions. * **Trading into Other Collateral Types:** After locking up ETH in TheStandard, you can trade it into other collateral types using TheStandard DEX widget. * **Bridging Other Cryptos:** If you want to bridge other cryptocurrencies to Arbitrum, transfer a little ETH first to cover the gas fees for those transactions. * **Beware of Gas Fees:** Keep an eye on the gas fees, as they fluctuate. Make sure you have enough ETH to cover the fees at the time of your transaction. Following these steps, you can easily load crypto onto your fresh Arbitrum wallet and explore the DeFi world on TheStandard. Remember to always double-check your transactions and keep your wallet secure. Happy swapping!
# Understanding Stablecoins Explaining different stablecoins as well as the CDP model that TheStandard ecosystem employs. In the quest for stability within the volatile cryptocurrency market, stablecoins have emerged as pivotal assets, offering the benefits of digital currency without characteristic price fluctuations. However, not all stablecoins are created equal, and the methodologies behind their stabilization mechanisms vary significantly, each with its advantages and drawbacks. ### **Centralized Stablecoins: A Step Backward** Centralized stablecoins, such as those pegged to the US dollar on a 1:1 ratio (USDC, for example), represent a paradox in the cryptocurrency realm. They necessitate a return to the very trust in centralized financial institutions that Satoshi Nakamoto sought to eliminate. These stablecoins are often backed by fiat currency reserves held in banks, which, by their nature, are not obligated to operate on a full-reserve basis. This discrepancy introduces a level of trust and opacity that contradicts the principles of decentralization and transparency foundational to blockchain technology. The irony is palpable – a full circle back to reliance on central banking systems, undermining the ethos of cryptocurrency's promise of autonomy and peer-to-peer transactions. ### **Algorithmic Stablecoins: A House of Cards** Algorithmic stablecoins take a different approach, attempting to maintain their peg through algorithms that manage the stablecoin supply based on its demand. However, this model has often proven precarious, as it relies on the stability of another "nonsensical" token created by the same entity, which can be manipulated (inflated or deflated) at will. The collapse of several high-profile algorithmic stablecoins, including Bitshares, Terra Luna, and others, has exposed the inherent vulnerabilities in such systems. These failures underscore the challenges of creating a self-sustaining, stable ecosystem without an external, stable reference of value. ### **Overcollateralized Stablecoins: The Superior Model** Enter the realm of overcollateralized stablecoins, a model epitomized by TheStandard.io. Unlike its predecessors, this approach allows users to lock up inherently valuable and scarce assets like Bitcoin, Ethereum, LINK, and others to mint debt against them. This model is superior for several reasons: 1. **No Reliance on Central Authorities**: It eliminates the need to trust a central authority to hold reserves, aligning perfectly with the decentralization ethos of cryptocurrency. 2. **Asset-Backed Security**: The collateral consists of tangible, valuable cryptocurrencies, ensuring that the stablecoin is backed by assets with intrinsic value, not just algorithmic promises. 3. **Transparency and Trust**: Using blockchain technology ensures that all transactions and collateralization ratios are transparent and verifiable by anyone, fostering trust in the system. 4. **Mitigation of Volatility**: Allowing users to borrow against their crypto assets provides a mechanism to leverage these holdings without selling them, offering a hedge against market volatility. TheStandard.io stands out as a beacon of innovation in the stablecoin landscape, offering a robust, secure, and transparent solution that addresses the pitfalls of both centralized and algorithmic stablecoins. By leveraging real-world value in the form of digital assets, it offers a sustainable model that provides stability and trust and aligns with the foundational principles of cryptocurrency. This makes TheStandard.io an alternative and a superior model in the ever-evolving stablecoin arena, promising a more stable, decentralized financial future. TheStandard.io introduces a novel approach to DeFi borrowing, allowing users to earn an interest on collateral and then mint debt against those collateralized assets. This platform eliminates the traditional borrower-lender dynamic, allowing users to leverage their assets without relinquishing control. With a focus on [over-collateralized stablecoins](https://docs.thestandard.io/tst/additional-resources/understanding-stablecoins), TheStandard.io ensures a secure and flexible borrowing experience.