Unorthodox is the canary network on Kusama of Standard Protocol.
Standard Protocol is Polkadot's stablecoin for synthetic assets, building a new paradigm for a liquidity aggregation platform. Unlike most existing algorithmic stablecoins, Standard rebases its stablecoin supply in each era. It will act as the catalyst for other parachains' financial activities, enabling leverage trading and arbitrage in AMM created from liquidation. It will also open a protocol for a synthetic asset market with a decentralized oracle ecosystem.
Decentralized Oracle Ecosystem
Oracle clients from various sources (e.g. Binance, Coinbase, HydraDX, etc) can
provide aggregated price information so that the price cannot be manipulated by a
single entity.
Standard Protocol builds an oracle module to share block rewards with oracle
providers. Substrate enables developers to split block rewards to other network
participants in every era. Block rewards to oracle providers maintain an 8:2 ratio
between validators and the providers in an era. The total block rewards in each
era is 10% (governance controlled) of total STND produced in the era.
Oracle providers are selected using the phragmen algorithm. Selected oracle
providers have no fee.
Block can only have upto certain number of oracle transactions recorded. This is
to prevent too many oracle transactions taking up one block.
a. Oracles are used for generating synthetic assets from the stablecoin Meter
(MTR). Standard Protocol treats oracles like validators for operating across the
wide scope of the DeFi ecosystem.
Market Efficient Liquidity
Instead of hosting an auction for liquidating collateral, Standard Protocol deposits
liquidated collateral to its AMM pair so that Meter (MTR) holders can purchase
other liquidated digital assets. Standard protocol uses a built-in AMM module to
provide liquidation in a more market efficient way where liquidated assets are
utilized to conduct arbitrage trades.
Standard Protocol rewards stakeholders who find expired loans by giving them a
percentage (10% or more) of the collateral. The rest of it goes to Standard
Protocol's built-in DEX to provide arbitrage opportunities to stakeholders who use
the exchange.
Stable Base Price
By being algorithmically stabilized through rebasing, Standard Protocol provides
cash which can act as a base price. For speculating on a digital asset, Meter can be
used to estimate how much the asset is worth with the price pegged to USD.
Interoperable Ecosystem
Standard Protocol is a collateralized, rebasable stablecoin (CRS) protocol, working
across different blockchains as a form of smart contract in each network. Together,
the Standard Protocol ecosystem for interoperability represents a blockchain hub.
Standard Protocol will be able to share price information to other chains or fiat assets
without charging fees due to its self-sustaining oracle reward ecosystem.
