Standard
Search…
Diving into Standard Protocol

What is Standard?

Standard is the first diversified, community driven, decentralized treasury serving a mandate towards community driven impact. Assets held in the Standard treasury are Standard Assets, built on the fundamental principles of the Standard Digital Asset framework. The key differentiator with Standard is that the assets taken in are put to work in unique ways that are largely yet to be seen in the crypto market today in that they serve the fundamental growth and development of communities and individuals driven by Standard members.

Operating principles

Standard is a decentralized treasury and financial ecosystem that allows people from around the globe to invest in projects that are meaningful and valuable to them and their families. The workflow includes the following steps:
  • A community of Standard members proposes and decides on what they want to fund - for instance, a local solar power plant will provide a town with electricity. At the same time, the excess may be sold to generate revenue.
  • The participants fund the project and receive SDA (standard digital asset) tokens that give them voting power and the ability to be a member of the organization.
  • Standard uses the funds to carry out the project (purchase assets, fund development, etc.).
  • The assets and returns from the investment are accumulated by the treasury, increasing the number of assets managed by token holders (i.e., Standard members)

Participation in Standard

There are two main strategies for market participants: staking and swapping. Stakers stake their SDA tokens in return for more SDA tokens (SDA tokens already purchased on a DEX, CEX), while swappers exchange their assets (e.g., DAI) in return for SDA tokens after a fixed vesting period (typically 5 days). The SDA tokens received after the fixed vesting period will be automatically staked for the investor.

Value to Holders

Staking

The main benefit for stakers comes from supply growth. The protocol mints new SDA tokens from the treasury which are distributed to the stakers (not all minted SDA is allocated to the stakers). Thus, the gain for stakers will come from their auto-compounding balances, though price exposure remains an important consideration. If the increase in token balance outpaces the potential drop in price (due to inflation), stakers will make a profit.

Swapping

The main benefit for swappers comes from price consistency. Swappers commit capital upfront based on a promised fixed return after a fixed vesting period in SDA tokens. Over this time, a percentage of the swap reward is released each day and automatically staked for the swapper, adding a compound factor to the initial yield received. The swapper's profit would depend on SDA price and staking APR throughout swap maturity. Swappers benefit from either a rising or static SDA price.

Membership

Standard members gain access to ecosystem rewards as well as voting and proposal of mandates to support themselves and their communities. Membership benefits increase with increased activity in the platform and community.