Liandaodao Live Room丨Dialogue with South Korea's first Web 3.0 Foundation Grant Project Standard

At 20:00 on April 28, 2021, the Liandaodao live broadcast room's big name sharing meeting specially invited Standard Protocol consultant Momo to conduct a special live broadcast of #Standard——South Korea's first Web 3.0 Foundation Grant Project#. Sakura Xiaoying, the head of Liandaodao Media, will talk with Momo, and through the method of question and answer, the hottest content in the industry will be presented to you. ‍

Standard Protocol is the first hybrid collateral elastic supply stablecoin based on synthetic assets based on the Polkadot ecosystem, and has obtained a grant from the web3 Foundation. It is reported that Standard Protocol will be launched on Uniswap at 22:00 on the 29th, and will be launched on Gate and Kucoin at 22:40. The previous project IDO received more than 118,000 whitelist applications from 87 countries around the world. Since the Gate IEO started at 22:00 on the 28th, Gate has been oversubscribed by more than 700 times. As a new generation of hybrid collateral elastic supply stablecoin protocol, Standard Protocol has long been supported and promoted by top KOLs such as Mr Business and Ivan on tech, and has been recognized and invested by top funds such as CMS and DFG.

The following is the interview transcript: (with some minor omissions without changing the original meaning)

Question 1: First, please let Teacher Momo introduce the Standard project to us.

Momo: The Standard protocol is the first hybrid collateral elastic supply stablecoin based on synthetic assets based on the Polkadot ecosystem, and has obtained a grant from the web3 Foundation.

We have implemented a hybrid mechanism for minting stablecoins and included a new paradigm for liquidity. Compared with other algorithmic stablecoins, we indirectly adjust the supply and demand relationship through collateral rate adjustment, which is more secure in terms of capital adequacy. In addition, Standard realizes leveraged trading and arbitrage through built-in AMM, becoming a catalyst for financial activities of other parachains. Standard can also generate protocols that can be used in the synthetic asset market through decentralized oracles.

Standard can be summarized in one sentence as an algorithm-backed stablecoin. It has the characteristics of Dai, but with the elastic supply of Ampleforth. Our uniqueness lies in our three-token module system, which leverages blockchain leverage. Users will mainly participate in the yield farming and liquidity of the standard governance token. The three words include the three-token system, algorithm support, and liquidity supply capabilities. The Standard protocol is a hybrid collateralized rebasable stablecoin (Collateralized Rebasable Stablecoin) protocol based on the Polkadot ecosystem and synthetic assets. In addition to digital currencies, synthetic assets also include stocks, index funds, commodities, and legal money funds. Standard aims to connect traditional markets and cryptocurrency markets.

Question 2: Can you introduce the Standard team?

Momo: Standard is a global team. We already have very professional and experienced technical development and business development teams in the United States, South Korea, and China. Through existing partners, we will reach out to communities in many different regions, such as China, South Korea, the United States, the Middle East, Eastern Europe, and Southeast Asia. We are also contacting KOLs in Japan and Nigeria. Standard has received support from some large Polkadot ecosystem communities such as PolkaKR, PolkaBase, etc. In short, Standard has a global team, the best Substrate development members in South Korea, and the top Polkadot community in China.

Question 3: We know that Standard has received widespread attention from the market. What projects or ecosystems does Standard currently cooperate with? What solutions does it provide?

Momo: Our current partners include Plasm, Konomi, Bridge Mutual, Litentry, BarnBridge, Mask Network, etc. We are also in contact with the BSC ecosystem.

Regarding solutions, Standard was also created with the goal of solving practical problems.

The three major dilemmas of the DeFi ecosystem are:

1. The price of algorithmic stablecoins without collateral is unstable and volatile;

2. The oracle is too centralized and lacks a decentralized ecosystem reward mechanism;

3. CDP model auctions are difficult to track and have high barriers, resulting in whales controlling the auctions.

Standard’s solution:

1. Standard allows cross-chain digital assets to be used as collateral;

2. Standard has currently implemented a decentralized oracle reward mechanism;

3. Efficient liquidation based on automated market makers provides everyone with the opportunity to use MTR stablecoins to purchase assets at lower prices.

Question 4: Can you briefly tell us about the economic model of Standard tokens and its recent development?

Momo: Standard has three tokens with different uses. Stablecoin Meter (MTR), liquidity token Liter (LTR), governance token Standard (STND)

MTR is a stablecoin generated by the Standard system. Holders can use MTR as a medium of exchange. LTR is a liquidity provider token that represents the share from the AMM module, similar to the LP token in Uniswap.

STND is a governance token. STND holders can obtain block rewards and participate in governance by staking. STND is used as transaction fees.

Meter (MTR) is a stablecoin minted by collateralized digital assets. Similar to Dai, the value of the stablecoin is maintained at $1. MTR can be used to purchase other liquidation assets at a discount, and will only be recalculated when its price deviates sufficiently from the target peg (>3.5%).

Lite (LTR) is a liquidity token that represents the equity and rewards that the AMM module gives to holders who provide liquidity. Standard has a built-in AMM that facilitates peer-to-peer (P2P) transactions, such as trading to liquidate collateral for arbitrage opportunities.

Standard (STND) is a governance token that can be used to pay fees, earn staking rewards and participate in on-chain governance.

Question 5: What passive income methods does Standard provide? Staking, liquidity mining, yield farming? In addition, what incentives are there to ensure sufficient liquidity?

Momo: Yield farming and becoming a protocol oracle validator are passive income methods. Like other protocols, staking earns interest and transaction fee dividends.

Active income methods, such as becoming a community ambassador or strategic partner, will also receive corresponding benefits. We are indeed more than just an elastic supply stablecoin: we use synthetic assets as collateral and algorithms to adjust the token supply. Our founder Kang has established a new hybrid collateral elastic supply stablecoin.

We have allocated 30% of the tokens for Yield Farming to ensure sufficient liquidity, which is the largest proportion of our token distribution. Please refer to the figure below for details.

Question 6: Compared with other similar projects, what are the obvious advantages of Standard?

Momo: First of all, the technical advantages: Standard is not just a single application, but an ecosystem with multiple modules and many innovations, such as milestone innovations in elastic supply mechanisms and the integration of AMM DEX into liquidation. We hope to become a stabilization mechanism that other algorithmic stablecoins cannot achieve, and this goal can be achieved through the technology within the Polkadot ecosystem.

In terms of community, we have the advantage of Polkadot communities in China and South Korea. We also have a high degree of community and investor participation around the world. We are currently working with more than 60 KOLs and local PR companies from all over the world, and are also building local communities so that we can maintain barrier-free and transparent communication with the global community. Currently, the total number of English group users has reached more than 32,000, and the number of Twitter followers is more than 32,300.

Finally, in terms of partners, we have currently reached a cooperation with a financial institution called Gingko Bank, which has obtained the Korean government's permission and license for crypto transactions. We will access the offline payment module and introduce practical applications. We have already had a plan for actual cooperation. This is great news not only for us, but also for the entire DeFi industry. In addition, we have established a partnership with Plasm Network, a multi-virtual machine scalable smart contract platform on Polkadot, and will introduce a new standard for synthetic assets to the Plasm Network ecosystem.

Question 7: How does the Standard project itself achieve profitability? How can it successfully attract investors and traders?

Momo: Sources of project income: stability fees of the funding pool, interest on loan repayments, or some fees charged in DEX or liquidation.

Our promotional strategy to attract investors and traders consists of three steps:

#1. Conduct B2B cooperation with other DeFi and Polkadot ecosystem projects. Many projects are already in negotiation, and we are also a member of the Polkadot DeFi Alliance.

#2. Bring synthetic assets (such as virtual stocks, commodities, etc.) and integrate with social networks (such as masks) to make something similar to eToro or dHedge

#3. Apply NFT, for example, use it to establish a mortgage debt position.

Additionally, we are experimenting with launching an ambassador program, managed by local communities. We are also working on video guides on how to use the Stanadrd protocol, including how to use the Standard stablecoin and use it to invest in other crypto or synthetic assets. And, we have reached out to KOLs around the world to increase participation. In the weeks leading up to our IDO, you will already see a lot of publicity on discord, medium, Twitter, YouTube, etc!

Question 8: What challenges does the Standard protocol face? How do you plan to overcome them?

Momo: The biggest risk of stablecoins comes from the rapid price drop, and users liquidate assets, which leads to a rapid price drop and a death spiral. To address this risk, Standard adopts an efficient liquidation mechanism based on AMM, that is, when the pledged assets expire, they will be automatically liquidated at a discount through the AMM module, and users can purchase discounted assets for arbitrage.

At the same time, the price stability of MTR requires people to pay stability fees, which will lead to a weaker willingness of users to use it. However, in the Yield Farming module, we have designed a way to earn STND by staking MTR to encourage users to use MTR.

Question 9: Community support is one of the important factors for project success. Most projects have projects that interact with users. Do you have any special plans to attract and expand the community and improve user experience? And can you share with us the situation of the Standard community, how can users participate in Standard, and are there any corresponding tutorials?

Momo: I totally agree that the community is very important in the ecosystem. At present, our ambassadors from various countries and regions have provided us with a lot of help, including Europe, the United States, Vietnam, South Korea, Indonesia and other regions. Our project ambassadors are building or have built regional communities, Zhejiang helps us better communicate with local investors and users. In addition, in the past few years, members of Standard have also been community builders.

Regarding rewards, we are preparing to implement a program for community developers to receive STND rewards, namely the community module. At the same time, we will also grant whitelist status to early community participants and regional ambassadors.

Regarding the further popularization of the project, on the one hand, we will connect to the offline payment module and introduce practical applications. On this aspect, we have already had a practical cooperation plan with local banks in South Korea. On the other hand, our team has experience in building the Polkadot ecosystem community, which will play a significant role in accelerating the construction of Standard's community awareness. We will write more meaningful articles for publicity.

We have established Telegram (https://t.me/standardprotocol), Discord (https://discord.com/invite/BkcE8kR9B9) and Clubhouse English communities (https://www.joinclubhouse.com/club/standard-defi). The Chinese community is currently a Chinese Telegram group (https://t.me/standard_china), and the WeChat community is gradually being built. At present, the total number of users in the English group has reached more than 13,000, and the number of Twitter followers has reached more than 16,500. Welcome everyone to pay attention to and participate in the Standard ecosystem.

Question 10: Finally, can you tell us about Standard’s subsequent development plans and future goals? (Please take notes)

Momo: Our next time nodes are:

Gate IEO from 22:00 on the 28th to 20:00 on the 29th

Polkastarter IDO at 21:00 on the 29th

29th 22:00 Uniswap

29th 22:40 Gate, Kucoin

Welcome everyone to follow!!!

In terms of technology, the product Beta version will be released in mid-May. This version will cover all sectors except Yield Farming. In the second quarter of 2021, we hope to integrate Kusama parachain, crowdloan, etc. We have already tested on Kusama, and the goal is to run the first Concil. Yield farming will start at that time. By the third quarter, the Polkadot parachain and crowdloan will be fully integrated. By the fourth quarter, that is, by the end of this year, we hope to fully start yield farming on Polkadot parachains and connect them. We hope to apply the Standard protocol to other ecosystems (Cosmos, Ethereum, etc.).

It is worth mentioning that we are also in contact with BSC, and may be transferred to the BSC ecosystem in the future.

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Thanks to the community and media for their support (in no particular order):