How Do TheStandard.io Smart Vaults Work?
TheStandard.io is a revolutionary decentralized lending and stablecoin platform that aspires to set the global standard for stablecoin issuance and lending. Utilizing the Ethereum Virtual Machine, it leverages tokenized assets such as gold, Bitcoin, Ethereum, and more to ensure the stability of the currency and allows users to take advantage of fiat inflation. Starting with the launch of sEURO as the first stablecoin, the plan is to rapidly expand to include other fiat currency stablecoins like sUSD, sINR, sRUB, sGBP, sAUD, and more. A key feature of TheStandard.io is the introduction of “Smart Vaults.”
What are Smart Vaults and How Will They Work?
Smart Vaults are secure, non-custodial storage solutions built on Ethereum that enable users to store and manage a wide range of rare assets, including cryptocurrencies, tokenized gold, and silver. These vaults are non-custodial, meaning that users hold the private keys and have full control over their assets, eliminating the need to trust a third party with their assets.
Additionally, users have the ability to borrow against their collateral locked in the Smart Vault, as long as the collateral level is at least 120% of the borrowed amount. This allows users to leverage their assets and not have to sell their rare assets during an inflationary economy, but instead use a stablecoin. The benefits of this system include no capital gains tax requirements and the ability to leverage assets during an inflationary economy.
TheStandard.io’s “Smart Vaults” offers a user-friendly and secure way for individuals to store and manage their rare assets, including cryptocurrencies, tokenized gold, and silver. The process of utilizing the Smart Vaults is straightforward:
- First, users will send their rare assets (Bitcoin, Ethereum, Gold, Silver) to the Smart Vault (smart contract).
- Users can then borrow up to 80% of the value stored in their Smart Vault in sEURO.
- To unlock their collateral in the Smart Vault, users will need to pay back the sEURO loan.
Smart Vault Features
Each Smart Vault is designed to hold a variety of different coins and tokens as collateral, allowing users to diversify their holdings and manage risk. When borrowing, users will pay a 1% fee to the Standard Protocol, with 50% of that fee going to the protocol’s treasury and the other 50% going to stakers from the IBCO stage 3. Users also have the option to return the borrowed sEURO and pay the 1% fee to the protocol. Additionally, users can withdraw their collateral, as long as it doesn’t under-collateralize their borrowed sEURO. In case a vault becomes under-collateralized due to price changes, it will be liquidated, and the user will lose their collateral but keep the borrowed sEURO.
To ensure fair pricing and prevent unexpected liquidations, Smart Vaults use average prices determined by the market, which helps to mitigate the risk of sudden price changes and ensures that users can make informed decisions about their assets.
Summary
TheStandard.io’s Smart Vaults provide a non-custodial storage solution and enable users to borrow against their collateral while maintaining control over their assets, with the added benefits of no capital gains tax requirements and the ability to leverage assets during an inflationary economy. To join the IBCO and take advantage of the benefits of being involved early with TheStandard.io, visit the link below!
RECENT MEDIA APPEARANCE
See our protocol lead Joshua Scigala in his recent interview with Decentralized Dave, to discuss TheStandard.io and why over-collateralization is a key fundamental to a successful stablecoin protocol.
