Introducing Account NFT
Account NFTs are new enhanced unit of an USM account from Standard Protocol to connect collaterals to smarter way of transactions.
Accounts in blockchain has been limited to sending funds to one another. However, in the world we live in web2.0, there are so much more way of executing transactions with money. There are cashbacks, discounts, mortgates, and others that provides personalized finance on one’s situation.
When crypto is now trying to be adopted more than ever before since 2017, decentralized stablecoin projects have not innovated for these fintech infrastructure. Projects have been emphasizing new pegging mechanism that can be the next internet money and connections with fiat industry, but they have not stated what benefits it can bring while relating with other defi or for mass adoption in web3.0 ecosystem.
Standard Protocol innovates this market with new enhanced unit of an account in NFT: V1. V1 is an USM Account in NFT to connect collaterals to smarter spending. V1 represents the ownership of USM and metadata of CDP that a USM Vault holder manages. Let’s go how it benefits with V1 in USM Cycle.
USM Cycle
In good times where crypto is appreciated and USM is sustainably pegged to 1 USD, USM not only acts as the reserve currency but also gateway to bonus offers. New defi projects or digital assets appear and they try to increase TVL to have market dominance within the ecosystem. Projects can provide bonus offers using tokens to those who absorbs their token volatility via generating USM. V1 can also act as a credit score where others can trust for how likely it is that they will be repaid on time if they give a person a loan. With this, NFTs can be bought immediately with cheaper price be paid later.
In bad times where overall crypto market value drop and collaterals start to liquidate, those who kept V1 status healthy are more likely to trade liquidated collaterals with USM on Standard DEX. They can keep V1 healthy for the next benefit they can receive in the next cycle while keeping their account safe. For those who got liquidated, the record can always be erased with buring V1 or start clean with new wallet.
Conclusion
We are all profit-maximalists at heart and cannot rely only on religion or idealism that crypto will eventually take over fiat. We have to use it and claim ownership to get benefits what we are supposed to have before in web2.0. Standard will provide sustainable but yet competitive web3.0 stablecoin that can be fiat currency of sovereign internet.
Appendix
CDP : Collateral-Debt-Position. A position which calculates ratio on collateral value to debt value
