So in this AMA we had ✨Topic: $USM, a self-sobereign, nin reserve web 3.0 stablecoin
Here’s Standard Protocol linktree
https://linktr.ee/standardweb3
Segment 1: Questions from Cryptoiz
- Hi Dixon, this is actually Standard’s third AMA in here. Our community has been familiar with Standard Protocol and now we are really excited to talk about Standard’s new product MeterUSD $USM, before we start talking about this, please kindly introduce yourself
Answer : Name’s Dixon, i am the product owner of Standard Protocol. My role mainly focuses in driving product directions as well as supporting the product operations in the team. As Dinda said, this is the third time we are invited here (thanks again!), i will just straight to the point. Standard Protocol, is now happy to announce that our stablecoin, MeterUSD, aka $USM, will be releasing in Feb. with the success of our former launch of our crosschain DEX on Shiden, Ethereum, and Metis. our stablecoin $USM will be the next product, aiming to be the first self-sovereign stablecoin available in the market.
2. So, can we talk furher about $USM? Please kindly enlighten us about this self-sovereign, non-reserve Web 3.0 stablecoin..
Answer : so for those who are not familiar to Standard Protocol design, recalling in 2021 we definted ourselves as a overcollateralized rebaseable stablecoin, which simply means, we adopt the overcollateralization model like MakerDAO to provide sufficient backing value for each $USM to be at $1 peg. while at the same time our supply, the minting process is rebasable, and hence maintain a dynamic relationsihp with the market situation.
both, have already provide sufficient stability as being a stablecoin in the market, but since 4Q2021 our tech team has decide to take the step further and challenge the current designs of most stablecoin in the market: why almost all contract owns the collaterals that support to be owned users?
aren’t we moving towards Web3, which each individual should have more control and ownership to their own finance?
since the launch of DEX, where we handle our liquidation in seamless format, the team innovate one new features for the protocol that’s, the CDP in NFT format. in layman terms, when someone mint USM by collateralizing their assets.
normal contract will take the asset, lock it as a reserve, then release the stablecoin. in Standard Protocol, we instead locked your assets in the NFT, and transfer back the NFT to your wallet in addition to the stablecoin.
this in fact open up opportunities not only individuals can now trade their NFT (with collaterals stored) as a form of assets (i can elaborate more the financial strategy later), but also enable new mechanics such as CDP staking which will enable the borrower to earn rewards in $STND to compensate their interests, aka stability fee.
if you are unfamiliar with the financial operation do not worry, just rise the questions later. but in short compare to the first gen of collateralized stablecoin. Standard Protocol now turn your liability (the collateral) into opportunities (as you can freely trade or stake), and all these and all these.
3. When will you launch this stablecoin anyway?
Answer:
early Feb, first on Metis. if you are unfamiliar with this L2 you better study about it, because $USM will properly the first native stablecoin on Metis and be one of the Defi foundation there. Meanwhile, our Testnet will be launching early next week on Ethereum testnet. So if you want to get a hand on it in advance, that’s your chance. in coming months, our plan is continue to roll out onto other L1 / L2 chains in addition to parachain auction on Kusaman and Polkadot. All these, shall enable the interoperability of our stablecoin (p.s. actually first stablecoin to be multichain native fyi), again. stay tuned. more coming.
4. Launching $USM means you guys are aware of the current stablecoin problems, can you share us what the problem we are currently facing regarding this? And how do you guys solve this problem?
Answer:
that’s indeed plenty of rooms to improve in the current stablecoin field.
price feeding is one of them, has impact on the stablecoin stability. for which Standard Protocol has our own decentralized oracle to support the price feeding,which will even used for supporting on synthetics assets in later phases
on the other hand
Second, collaterals liquidation has been exclusive to minority, like MakerDAO only allow those who have Maker to auction the collaterals during a bear market. for this we introduce our multichain DEX such that instead of stablizing the peg through a sovereign activity, we stream the assets directly to our DEX such that the collaterals will be available to the market in no time.
Third, is the collaterals reserve. almost 99% stablecoin contract own some level of reserve of the stablecoin that user has borrowed, making them despite being decentralized, user loses the sovereignty and the ownership of their collaterals. Standard Protocol instead innovate with the CDP NFT to house the collaterals, and keep the collateral not just accessible, but indeed owning their liability. our non-reserve contract has hence empower the self-sovereignty of our users. in other words, (financial) power is back to people, once again.
5. Which chain does Standard try to connect next?
Answer:
so basically you know we have Ethereum, Shiden and Metis, while Metis will be our first location to pilot our stablecoin USM.
moving forward, chains expansion will continue to focus on two narratives: as a new stablecoin for capital leverage on mature chains, and “capturing the flag” as the native & multichain stablecoin on emerging ones.
Polygon and Ethereum will surely be one of the candidates given their well established defiecosystem
but we are also eyeing on Astar & Moonbeam, both are prioneer medium between Polkadot/Kusama and the EVM.
some candidates are also on list such as BSC, which if you have used our app.standard.tech should know that we have our bridge and routing service ready on it.
And of course those popular L2s, Fantom, Avanlanche, etc. the L2 are blooming in Defi space indeed
and for a natively multichain stablecoin protocol, i think onboarding them are just a matter of time and priority
hence, 2022 will surely be exciting.
Segment 2: Questions from Community:
- What is the difference between USM and CDP? @rillashin691
Answer :
oh $USM is the stablecoin token, each unit of it will be softly pegged to $1 USD.
as for CDP, it’s Collateral Debt Position, a terms that we normally used for recording the $USM you have minted against your collateralized asset. normally CDP is just a record in contract by moving user’s assets onto the stablecoin vault contract and locking them, hence “collateralizing”. Standard Protocol instead lock your assets within our CDP NFT which will be issued along with the $USM you have minted. So dont confuse CDP as a token symbol or what, it is not
2. Where I can stake $USM to get passive income? @Tan70061142
Answer:
at the begining, $USM will be mainly used as a leverage tool (as if you collateralizing your asset for USM and buy more assets) OR as a profit anchor (when you see a bear is coming and you just want to lock your profit).
depositing $USM for passive income is indeed our 2nd phase
when we finish building our Money Market
in which you will be able to deposit your USM to earn interest by letting the community to borrow with interests as repayment
otherwise you can always stake $STND, our governance token, in the dividend pool, where we will collect the all the revenue from our protocol and distribute to our communtiy as a reward in the format of dividends
https://blog.standard.tech/behind-the-product-2-beyond-voting-rethink-dao-as-a-business-941ffeb8a386
3. Please re-explain the meaning of non-reserve, does that mean USM has no limited supply? @mas_rstu
Answer:
in general, yes, $USM do not have an upper cap on total circulation. Yet our rebase mechanics is the one which help to regulate how much $USM will be mintable in coming period of time, based on the healthiness of the existing collateral portfolio.
as for non-reserve contract, it does not mean that our stablecoin has no backing value. in fact, we adopt over collateralization model, meaning that each $1 of $USM must be backed by MORE than $1 of crypto / fiat asset. We name our contract a non-reverse one is because we have no intention to keep your asset, despite it’s now a collateral, under our contract, and hence the CDP NFT, a NFT vault that locked YOUR ASSETS as collateral and maintaining your ownership and sovereignty on it.
we’re non-reserve because the contract does not own any reserve that is not supposed to be owned by us. As a side note, we still have a treasury. those are different concepts
4. Metaverse, game, NFT, and DeFi s not a short term but long term trend due to its application in reality. But amongs tons of game project, what are your most special ad unique features that make you feel confident about your project @salsabimila
Answer:
We are proud to claim ourselves as a truly decentralized protocol with DAO and self-sovereignty empower to the community
as a DAO, we treat it much a like a business to ensure that we have a revenue model to reward our members.
as a stablecoin protocol, we ensure that we truly embrace the element and vision of Web3.0, by introducing a new mechanics on handling CDP for individual, and improve from the “reserve-on-contract model” to a non-reserve architecture, just to ensure members own what they should have been owning, we are not saying that this would be a mindblowing feature or whatsoever. we are saying that self-sovereignty should be an ambition that the crypto should long for. And Standard Protocol is presenting a choice here to all of you.
Self-sovereignty is now an option in crypto space.
5. Most of projects just like to speak about the long term vision and mission but what are your short term objectives, so what are you focusing right now? About all the investors hold token for short term. What are the benefits of holding USM token? @randy_hog
Answer:
short term: launch $USM, expand to more chain, establish more $USM use cases with other Defi or even Cefi partners
long term: be the pioneer in defining how self-sovereignty should be in the future Web 3.0 economy
and do not concern about the investor port
we will also move towards being a full DAO in 2022
simply put, ultimately we put the power back to everyone. Long roads ahead i guess haha
6. What is your strongest advantage that you think will make your team leading the market? @gilang231010
Answer:
no i dont think we will lead the market. the market is so big and we are here not to seek dominance, but collaboration to push the industry forward. We are a new option. A new option that paints how a stablecoin could be in Web3.0 vision
regardless, the team is the strength, the masterminds behind this project has been the best team that i have worked with. Solid background in crypto, top-notch engineers and influential advisors, all these you can check on our site and their linkedin for details. i just think that regardless of the project, it’s the people that make it and its vision possible, especially on a self-sovereignty topic
7. How are your tokens in circulation and what is your total supply? What is the schedule of unlocking of listed token. In short, please assist us with your structure of tokenomics @alfamilenia
Answer:
now this one is need some time to dig up from the whitepaper… haha
one thing worth mentioning is that we have delegate a 30% portion for yield farming and the community growth
total circulation is 100M
we are far from the cap
there has been some discussion on burning some surplus tokens but i think it’s too early and a bit too manupulative for the moment. but definitely an option when we see fit
otherwise, in general you can find everything on our wp
8. Staking is one of the strategies to attract users and hold them long term. Does your project has plan about staking? @opikbro
Answer:
there have been a few: for instance you can always join our LP staking on Ethereum, Shiden and Metis for earning our governance token STND. on the other hand, you can also stake $STND for $dSTND to yield the revenue from the ecosystem. later when $USM has launched, you will also be able to stake your CDP NFT to earn the oracle rewards. i think we have plenty of options there
9. Most of the existing solutions for bear markets are impractical or have high barriers to entry. What about the solution that Standard Protocol has, what are your solutions for this bear market? @adeliabilha
Answer:
during a bear market, if you believe your assets price has been bottomed, you may indeed to consider to collateralize it and mint $USM for leveraged trade, and get prepare for the later bull cycle
on the other hand if you have already minted USM at high point and liquidation is approach, you can indeed consider to sell your CDP (as NFT) to other trader, who might hold a different point of view than yours and believe the market recovers soon. in this way you will be able to gain back the liquidity without having the asset liquidated, or in other words, derisking your CDP to other players.
This is only possible in Standard Protocol due to the self-sovereign CDP design
otherwise, if you forsee the market will recover soon, you can also buy CDP from other player, and consider to stake it to earn extra yield while waiting the recovery. of course in this way you will need to take the liquidation risk
generally speaking, the CDP NFT architecture is new to the market and we are longing to see how members would utilize this remember. credit to the self-sovereignty non-reserve design. 🙂
10. Can you please tell me the role of NFT and AMM on your current product USM? @siderepenyanyikilat_
Answer:
AMM enables the direct-to-market liquidation when liquidation of collaterals do happen. members can then buy discounted (liquidated) assets through AMM. AMM also acts as part of a multichain defi hub and user can free to move their assets around using bridges and routers, and then trade for arbitrary with ease.
NFT format is used as our CDP design, which hence enable self-sovereignty for end user and unlock all the “advance technique” above. it is the vault that most stablecoin host reserve (in their contract), in Standard we just do this in a truly decentralized format as CDP NFT are owned by borrowers.
thanks for having us.
for those who wanna know more about Standard, do feel free to find us on Discord and TG, our core team is one of the most engaging teams there in the space and very willing to take on any conversation with you.
in the meantime, stay safe, stay healthy. and see you after $USM launch. 🙂
