LONDON, March 24, 2022 (GLOBE NEWSWIRE) — Standard Protocol, the pioneer of the self-sovereign stablecoin project that welcomes the visions and truly decentralized forms of Web3, has announced the launch of its stablecoin, USM. In a market characterized, predominantly, by price fluctuations and volatility, stablecoins have become a solid reference; stabilizing the market.
Built on the principle of decentralization and transparency, USM has been designed to address a few sticking points.
Aimed at solving real-world problems plaguing stablecoin protocols, Standard Protocol introduces NFTs which will give borrowers full ownership of Collateral Debt Positions [CDP]. Besides that, CDP (NFT) will likely be leveraged as users now have full control over their debt, meaning that they are free to adjust, buy, sell in the secondary market, and partnered protocols can consider to use the CDP as well with users’ permission (e.g. CDP as high risk collaterals, etc.) to spend not only the borrowed USM, but also the CDP.
Yet another impressive and problem-solving feature of the self-sovereign, web3 stablecoin is its non-reserve facet. The introduction of a reserve fosters intermediary processes like voting, disinterest in voting by community members, and division caused by having different opinions on how the project should run. USM, being a non-reserve stablecoin will obliterate these complexities and difficulties, and guarantee a stable and sustainable protocol.
Blazing off to an untrodden path, Standard Protocol introduces the concept of collateral liquidation on AMMs. When liquidation happens, the collaterals are sent to the collateral-USM pair on the AMM, ergo meaning that the amount of USM stays constant while the collateral increases. This creates an opportunity for anyone to employ the arbitrage trading strategy where they can benefit from trading USM via the AMM.
USM, unlike other stablecoins, does not run on a custodial technique where protocols lock up funds in a multiple signature [multisig] wallet. This dispels all custodial risks associated with existing stablecoins. On the Standard Protocol, funds stay in the user-owned smart contract with each purpose written in it. As hitherto mentioned, liquidations are sent to the DEX pair between USM and its collateral, in the process allowing holders of this stablecoin to buy liquidations at a lower price, guaranteeing a return on investments.
The launch of USM, a self-sovereign, non-reserve, and Web3-enabled stablecoin will not only address the problems facing incumbent stablecoins but will offer greater ROI to holders.
With a realistic roadmap, albeit still a work in progress, Standard Protocol will hope to roll out a plethora of features, one of which includes the launch of other stablecoins that are pegged to fiat currencies.
About Standard Protocol
This is a self-sovereign stablecoin protocol that embraces the visions and concept of true decentralization and Web3. Powered by a decentralized autonomous organization [DAO], Standard Protocol will grant its users total control over their monetary system through multiple chains DEX. A recipient of the Polkadot Web3 Foundation Grant, Standard Protocol aims at innovating the next generation while priding itself as the leader of the global self-sovereign movement.
Please read more: https://medium.com/@hyungsukkang/what-is-usm-and-how-does-it-work-9a1939018b05
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