The Standard White Paper

A proposal for the ultimate decentralized stablecoin suite backed by rare assets

White Paper Abstract

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Trillions of US Dollars worth of rare assets, like gold and cryptocurrencies, are locked away in vaulting facilities and digital wallets around the world. The, a next generation monetary system, unlocks this vast stored value. It enables users to generate a stable virtual currency called “Standard Euro”. This is achieved by locking up tangible and intangible assets as collateral in decentralised smart contracts, called Smart Vaults. This allows people to spend their locked up funds without selling their assets.

The protocol is governed by a community of “Standard Token” holders which form a Decentralized Autonomous Organization (DAO). The Standard DAO will manage the protocol by making key decisions utilizing smart voting mechanisms and prediction markets.The innovative concept of stable virtual currencies backed by rare assets constitutes a new privatized and decentralized Gold Standard for the 21st century.

“You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.”
- Buckminster Fuller

Initial Bonding Curve Offering (IBCO) paper

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The Standard DAO proposes an Initial Bonding Curve Offering (IBCO) event to mint sEURO for the first time.

All contributed funds in the IBCO will be used to back the initial cohort of sEURO by building deep Protocol Controlled Value (PCV).

The PCV will be deployed to fund secondary markets for sEURO and back the sEURO minted during the IBCO. This innovative offering constitutes a smooth mechanism to lead sEURO to its 1:1 peg of fiat EURO. It shall be mutually beneficial to the protocol's liquidity, as well as to IBCO participants buying the stablecoin sEURO under a discount. 

Problems that the IBCO is solving.
Stablecoins are growing in popularity, because of increasing adoption in and outside the Defi space. However, many decentralized stablecoin projects have struggled to gain sufficient liquidity early on, which made them vulnerable to price volatility and market manipulation. When evaluating the data as to why other decentralised stablecoins failed, the research suggested that most suffered from a lack of liquidity. Not only does low liquidity inhibit trading and confidence but it also significantly impacts the stability of the peg. The problem is simple: Stablecoin prices will shift if there is not enough liquidity,  regardless of the pegging mechanism.

Any new stablecoin project entering the market faces usually three hurdles:

  1. The new stablecoins are usually not accepted as a form of payment, as they lack the first market validation.
  2. There are no options on how users can generate a yield on new stablecoins. 
  3. New stablecoins suffer from long acceptance curves of approx. 1-2 years until deep liquidity has been built up.