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Here we collect the questions that we get asked frequently and place the answers on this page. If your answer is not on the list,  then please join the Discord server to ask the helpful community that make up the DAO

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The Standard Token (TST)

What are Standard Tokens?

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Standard Tokens are governance ERC-20 tokens that enable people to govern The Standard Protocol as well as enable staking rewards that are made up of all the stability fees paid as well as the profits made from the deployment of the PCV.

How are Standard Tokens created?

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A total of 1 billion Standard Token has been minted through the Ethereum blockchain. You can buy them on the secondary markets or partake in the liquidity bonding event that will soon take place. Please join the discord to make sure you don't miss out.

What is the Standard Tokens used for?

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The Standard Token enables holders to receive large staking rewards. These rewards are from people all around the world taking DeFi loans out against their collateral and paying stability fees. The other reward comes from the Protocol controlled value that is deployed by the DAO  into automated market makers and collects trading fees. All these rewards are airdropped onto people staking TST.

This takes TST off the market by locking them into staking smart contracts.

To receive the rewards, token holders do need to participate in the governance of The Standard Protocol.

How can I get Standard Token?

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The Standard will be launching an initial bonding curve offering very soon. This will enable people to grab TST and sEURO at a substantial discount.
All this will be easily done on TheStandard.io, which is building the reference interfaces to The Standard smart contracts.

How does the token distribution work?

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The next and major token distribution will happen through a 3 step bonding and staking mechanism.

Initial bonding curve
Users will buy sEURO at a discount starting at 80 cents. For every cent of value sent to the contract, the discount will be less until we reach 95 cents.  This rewards early participants and all funds collected make up the Protocol Controlled Value (PCV).
The funds in the PCV pool will get deployed by the DAO into AMM's and a percentage of profits from the deployment is rewarded to TST staking pools.

Liquidity Bonding

The next step is to incentivise people and bots that now have sEURO from the step above to place that into liquidity pools on UNISWAP and swap the Uni swap LPNFT for a 7 day maturing bond that pays a strong ROI yield in TST ready for staking.

Staking TST
You have now realised a large gain on your initial contribution in step 1 and can now stake that gain to receive rewards that are made up from deploying the PCV into AMM's. 80% of profits will be distributed to TST stakers and 20% will compound into the PCV.

Is The Standard Token (TST) a governance token?

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Yes, The Standard Token (TST) is used by its holders to vote on key decisions like what the allocation spread will look like when deploying the PCV to make it as profitable as possible for TST holders.  

TST holders will also vote on a number of different key decisions as well as stability fees that private smart vault holders pay to keep the output stablecoins stable.

What voting rights do Standard token (TST) holders have?

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TST stakers are able to vote and get rewarded for voting on Multiple topics, such as:

  • The minting and closing fee,
  • How best to deploy the PCV treasury to maximise returns for the protocol and TST holders.
  • Any new features like new collateral types,
  • Due-diligence requirements for hard asset custodians
  • Lifting the emergency stability fee from 0% to stabilise any stablecoins that might need it.
  • More to come




What responsibilities do Standard holders have?

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The primary responsibility of Standard holders is to govern the protocol.




How many Standard Token (TST) exist?

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There is a mathematical cap of 1 billion Standard Tokens (1,000,000,000 TST) No more will ever exist. The Standard DAO has full control of the treasury and its income from stability fees. The DAO can choose to burn income in which case the supply will slowly decrease forever. The DAO could also decide to airdrop any coins on all Standard token holders, use them for marketing or anything the community decides.




DAO/Voting

What is the Standard DAO?

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The Standard DAO is a decentralised autonomous organisation, responsible for governing and growing the platform.  It consists of the community of Standard Token holders who can manage the entire ecosystem by making key decisions utilising smart voting mechanisms and/or prediction markets.


The Standard is decentralised so there is no central authority that can be corrupted or taken down. We are a community of key holders (TST) that enable anyone holding TST to help govern, control and steer the protocol in any direction through a democratic egalitarian mechanism.

Are all Standard Token holders authorised to participate in the governance system?

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Yes, they are, provided their Standard Tokens are placed in the platform’s native wallet (or a compatible wallet). Token holders who store their Standard Token in external wallets will not be able to participate in the voting mechanism. We are also exploring another mechanism to enable people that hold TST in cold storage to simply sign a message once to prove ownership and then be able to participate.

How many votes do I get?

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Every token enables token holders to place one vote on one voting subject. Voting power is proportional to the number of tokens held.  Token holders can place votes on various subjects at the same time. For example, if a user holds 100 Standard Tokens, the user can place 100 votes on each and all open subjects.

What can Standard Token holders vote on?

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TST stakers are able to vote and get rewarded for voting on Multiple topics, such as:

  • The minting and closing fees,
  • How best to deploy the PCV treasury to maximise returns for the protocol and TST holders.
  • Any new features like new collateral types,
  • Due-diligence requirements for hard asset custodians
  • Lifting the emergency stability fee from 0% to stabilise any stablecoins that might need it.
  • More to come

How does the proposal system work?

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This is outlined in detail within The Standard white paper but below you will find a small exert.

Idea and discussion 

A rough idea is first published on the Discord server and sentiment about the idea is discussed. Once the author and community are happy to formally submit the idea for a vote, it must be published in the official forum as a high-level overview without too much detail. The Standard’s forum will be the main forum used for formal discussion on SIP’s. 

Once a proposal author is happy with community sentiment and some of the details have been fleshed out, they can submit an official high-level proposal to the forum proposals category. This will be discussed further on the forum for a min of 7 days. 

Gate 1 Signalling vote

The final draft is submitted to the first gate which is used to signal general approval for the Standard improvement proposal in question. The votes will happen on Snapshot.org and will determine if the proposal goes through the first gate or is rejected. A minimum of 5 million tokens are needed to vote and 51% are needed to approve the proposal to open the gate.

Validation discussion

This is where the proposal gets fleshed out and all details are discussed in the forum. 

Members can assess technical feasibility, scope, timelines and expected deliverables, execution plan and where it fits into the schedule. A forum poll and SIP number is required before going on to gate two. The SIP number will be assigned after a forum poll returns positive sentiment to move forward.

Gate 2 The Standard Improvement Proposal SIP

Getting through the second gate will determine if a SIP is approved for execution or gets rejected by the DAO. This is done by a vote on a voting platform (for example snapshot.org). A minimum of 10 million tokens are needed to vote and 70% need to approve the proposal to go through to be executed. 

Naming Convention

Proposals can or can not have a SIP number. It is expected that proposals follow the following naming structure to facilitate reading GATE # is the number of the gate they must pass through next

  • Without SIP # → [Gate # of #] Proposal title
  • With a SIP # → [SIP-#] [Gate # ] Proposal title,

In any case, the title has to be meaningful and honour the proposal in the discussion.

Will there be a prediction market system?

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The first version is set to launch without a prediction mechanism

Standard Euro (sEUR)

What is the Standard Euro (sEURO)?

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Standard Euro (S-EURO) is the first collateral backed stable coin to be released by The Standard Protocol. It is pegged to the EURO and issued by an initial bonding curve offering and then further issuance comes from people locking up digital assets like bitcoin, ethereum, and matic as well as tokenised physical assets like gold and borrowing against those assets using decentralised smart contracts. When users borrow against these assets they mint sEURO (with more stablecoins to come). The Standard aims at a 0% stability/interest fee for borrowing/minting.

How can I get Standard Euro?

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Users that participate in the initial bonding curve offering (IBCO) will be able to buy sEURO under the price of a euro. This mechanism enables the protocol to build deep liquidity and rewards early participants.

After the IBCO, Standard Euro is also minted into existence by leveraging a variety of fungible assets as collateral in a smart contract called a Smart Vault, unlocking its stored value. Standard Euro (sEURO) can also be sent and received peer-to-peer using compatible wallets. Additionally, Standard Euro can be acquired on secondary markets and cryptocurrency exchanges like UNISWAP.

How can I garner a yield with sEURO?

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The initial bonding curve event will enable anyone to add liquidity to liquidity pools and then swapping the LP tokens / LPNFT's for a 7 day maturity bond. This bond is a high yielding bond.

Stability Fee

What is Liquidation?

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The liquidation of a Smart Vault is the process in which a generated amount of Standard Euro gets repurchased by automatically liquidating a Smart Vault's collateral. The different minimum collateral levels are determined through a voting mechanism of the Standard token holders. Borrowers are incentivised to over collateralise Smart Vaults to prevent liquidation.

There are several mechanisms planned to help people to never be liquidated. For instance, people can set a mechanism to auto-trade a volatile asset like Ethereum to gold if ethereum is falling in price too fast.

TheStandard.io reference client will also have alarms that warn people if their loans are getting too close to becoming liquidated.

If there is a liquidation event then TST holders staking sEURO on the platform will be able to purchase the liquidated assets under market price.

Why does Liquidation exist?

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This process plays a critical role in the price stability of sEURO as it ensures that the protocol is always over collateralised. meaning that there is always more value locked up in smart vaults than there are stablecoins flying around. This is what set us apart from failed projects like LUNA that were not backed by anything. The Standard is backed by Bitcoin, Ethereum and Matic which we can not print out of thin air. The Standard protocol is also backed by tokenised physical assets like gold and silver.

What triggers a Smart Vault Liquidation?

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A Smart Vault gets liquidated when its collateral value falls below the minimum required level of collateral value. The collateral assets may differ in the minimum necessary collateral levels. The more volatile an asset is, the higher the required collateral level will be.

The minimum collateralization levels of the different assets supported by the protocol get determined through a voting mechanism of Standard token holders. Once a Smart Vault is created, the minimum collateralization level of the Smart Vault cannot be altered.

The Standard is building many tools to help users not to get liquidated. These include Alarms when prices of collateral fall too close to a liquidation event. as well as auto trades so that people can automatically trade the underlying collateral with tokenised gold.

Smart Vault

What is a Smart Vault?

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A Smart Vault is a smart contract in which users lock up tangible and digital assets as collateral to mint stable coins.

What assets can be deposited into a Smart Vault?

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Public and native tokens that have been approved by the Standard token holders' community that make up The Standard DAO.

What are Public tokens?

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Public tokens are cryptocurrencies like bitcoin, ethereum that can be used as collateral in Smart Vaults, if they've been approved by the Standard token holders' community.

But they can also be tokens backed by assets or a centralised organisation. Public tokens can be withdrawn from the Standard Protocol smart vaults .

Examples of public tokens are Ethereum, Pax Gold, wrapped bitcoin, chainlink and so on. Both native and public tokens need to be approved by the Standard Token community. While the onboarding process for public tokens can be simpler, native tokens face stricter onboarding requirements, as well as more technical development.

What are Native tokens?

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Native tokens are backed by assets that require a centralised organisation like a vaulting facility.

All native tokens are created by the Protocol's native custodians.  The Protocol has built-in functions that enable native custodians to tokenise their assets. Each native custodian is subject to a first time and periodical audit by the Standard DAO. Audit protocols might change, depending on the vote of the DAO.

Stability

What are the stability mechanics that keep The Standard Stablecoins pegged?

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The Standard has three mechanisms that keep the stablecoins issued on the protocol. For ease, we will simply talk about sEURO in this FAQ answer but it is the same for all stablecoins minted through The Standard.

THE STABILITY POOL

The Standard holds a pool of funds called Protocol controlled value that it will collect during the IBCO. This pool is used to always buy and sell sEURO with a maximum spread of 200 basis points. This means that people can always buy sEURO at 1.01 and or sell it back to the pool at 0.99 cents.

SMART VAULTS

People borrow from smart vaults and take these loans out in sEURO.

  1. If sEURO goes above 1 euro then people are incentivised to borrow more and sell it for a profit. This new supply will quickly drop the price of sEURO back to 1.
  2. If sEURO falls below 1 euro, borrowers are incentives to buy sEURO from secondary markets to pay back their debt for a discount. This buying pressure helps lift the peg back to 1 EURO.

EMERGENCY STABILITY FEE

As a last resort, we have implemented the ability for The Standard DAO to vote on lifting the interest rate of 0% up to what is needed to regain the peg. The higher price of debt will encourage borrowers to go to secondary markets, buy sEURO and pay off their loans.
NOTE: The Standard aims to always have 0% interest for borrowers, the Emergency stability function is purely for rare black swan events.

What makes The Standard Protocol better than TERRA LUNA?

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TERRA LUNA UST was a pure algorithmic stablecoin with nothing backing the value of UST but their own worthless LUNA coin. LUNA was infinite in its issuance amount. So the network was giving a 20% APY that it was printing out of thin air. you can read about the massive fail and

how The Standard is diametrically different to LUNA.
Custodians

What are Asset Custodians?

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Custodians are parties that register with the Protocol’s online platform to become an official “Standard Custodian”. Custodians of assets are approved by Standard Token holders via a voting mechanism. The entity registering to be a custodian must go through a vetting process similar to KYC/AML checks before being approved by Standard Token holders. Bullion providers looking to join the network must apply to the Standard DAO. If they pass a set of conditions decided by the Standard DAO community, a set of access keys is issued.

What are Independent Custodians?

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Independent Custodians are asset-backed asset providers who have issued their own asset-backed tokens.

It is the responsibility of The Standard DAO to set the security standards and audit the physical vaulting facilities of independent custodians. Once the DAO’s security criteria have been met, the protocol will onboard independent custodian tokens that can be used as collateral in Smart Vaults.

What are Native Custodians?

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Native custodians are usually precious metals dealers or asset vaulting providers who are experts in securing and dealing with hard assets. Such custodians have legal contracts with the Standard DAO to ensure compliance with its custodian security framework. Users can access their vaulted assets balances via the Standard Protocol platform.

A Native Custodian uses the Standard Protocol to tokenise the assets within the platform. These tokens cannot be withdrawn from the platform. Instead, they provide a secure accounting mechanism between the Smart Vaults and the hard asset custodians as well as hold the ability for the hard asset vaulting fees to automatically be paid monthly.

Example: Alice is a customer of a custodian - XYZ Bullion Limited (XYZ). Her XYZ account has five kilos of gold in the vault. Alice decides to generate Standard Euro by placing her gold in a Smart Vault (a mechanism similar to a Collateralised Debt Position). The process of converting her allocated gold to tokenised gold is as easy as clicking convert on the XYZ Bullion website and then sending it to her smart vault all this only requires Alice to connect her wallet to the custodian. The custodian then calls the Standard.io Protocol’s API and credits Alice’s Smart Vault with tokenised gold as collateral. Alice has access to S-Euro within seconds.

Miscellaneous

What will I be able to do on my Standard Dashboard?

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The Standard dashboard is an easy-to-use interface that enables you to control your Smart Vaults and participate in the governance of the Standard Protocol by: managing collaterals, opening, closing and managing Smart Vaults and much more.

What is the Glass Books Transparency Protocol?

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One of the essential components of centralised collateral assets is transparency. The Glass Books Transparency Protocol will interface between the physical and blockchain space and prove the underlying asset is truly purchased and sitting in the vaulting facility. (Find out more)

What are Standard Tokens?

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A total of 1 billion Standard Token has been minted through the Ethereum blockchain. You can buy them on the secondary markets or partake in the liquidity bonding event that will soon take place. Please join the discord to make sure you don't miss out.