Kang Hyung-Seok, known as a genius developer who was invited to the Ethereum Devcon as a representative of Korea during his college days, was scouted as a former developer of Terra and participated in it, and launched the Standard Protocol in 2021. Also, he was famous as a Korean ambassador for Polkadot, and he announced USM (MeterUSD) in this standard protocol.
USM, a self-sovereign stablecoin, expands the stablecoin ecosystem in Kusama using XCM to be compatible with other parachains in Kusama, the current canary net of Polkadot, so that one stay compatible in cross-chain DeFi between parachains. It aims to establish itself as a blockchain.
Unlike UST, USM is a stablecoin that protects self-sovereignty over its own assets with NFT.
The utility NFT of the Standard protocol is different from the profile (pfp) NFT, if you have it in your wallet, you can use a specific smart contract like Vault, or other smart contracts recognize it and add a function that gives other benefits, the CEO said. For example, he said that it would be possible to implement a specific benefit such as a card company benefit, such as choosing BNPL’s payment method within the blockchain for a person with Vault NFT to purchase game items.
USM’s price uses DEX and invented a new leverage-hedge method instead of a 1:1 price swap like UST and LUNA, and the current price maintenance algorithm is successfully working in Metis layer 2. The leverage-hedge method is not a method of maintaining the price through intervention, but a method that is all decided by a smart contract. . However, when issuance from the beginning, the value of the stable coin is maintained by using an over-collateralization. When the price changes rapidly due to low liquidity in the DEX for a while, an algorithm is created that adjusts the issuance limit according to the price. to limit It also reduces supply and raises prices by raising fees and increasing the amount of USM recovered.
The standard protocol, which implements all the structures presented in the current white paper in the Ethereum virtual machine smart contract, strives to strengthen the utility of the standard token and the functionality of the USM in preparation for the current downtrend.
In the case of the standard (STND) token function, the representative not only establishes a DAO, but also introduces Votefi to select tokens that they want to be deposited in USM as over-collateralized as candidates, and deposits standard tokens for specific tokens and votes for the tokens selected as collateral. We are researching and implementing policies to receive rewards.
In addition, as a stable coin function, we are researching a method that allows the Vault smart contract account to deposit collateral to create a stablecoin in AAVE using the new Vault contract AAVE Vault to earn interest as collateral.