sEURO & Why Borrow Against your Rare Assets?
TheStandard.io is aiming to revolutionize stablecoins in the cryptocurrency market. Stablecoins have emerged as a pillar of cryptocurrency, particularly decentralized finance (DeFi). They are cryptocurrencies whose values are tied to other tangible assets. The sEURO will be pegged to the EURO in at a 1:1 ratio with a vision of creating a full suite of fiat-pegged stablecoins for all major fiat currencies.
These pegged cryptocurrency assets give institutional and individual investors access to programmable money that is familiar in value and doesn’t experience the same volatility as many cryptocurrency assets now available on the market. Stablecoins are essential for the widespread adoption of cryptocurrencies because they give investors security and stability.
Stablecoins are most frequently used for DeFi projects, which enable users to receive a yield for putting their cryptocurrency into different smart contracts. Because they eliminate all the inefficiencies of traditional finance, the profits on these smart contracts are greater than those of the banking system. In order to prevent collapse, the Standard protocol aims to become the next-generation monetary system that is overcollateralized by rare assets.
User’ current assets, including cryptocurrencies like Bitcoin and Ethereum as well as physical assets like gold and silver, are to be placed in private Smart Vaults in which the user will hold the private keys as security against the value of the sEURO. Investors are then able to borrow at 0% interest at approximately 85% of the total value within their Smart Vault.
WHY BORROW AGAINST YOUR RARE ASSETS?
A financial mechanism that only the ultra-wealthy have had access to is to be able to borrow against their assets at a low fixed interest rate. TheStandard.io is opening this tool to the masses so what does this mean and what are the benefits?
Firstly, if you wanted to purchase a car and owned a substantial amount of Bitcoin or Gold for example you would usually need to sell those assets for fiat currency which in most jurisdictions, triggers a capital gains tax event if those assets have risen in value. Instead, if you have borrowed against those assets you have not sold and therefore no tax event has occurred and you have avoided the inefficiencies of the traditional banking system by using TheStandard.io smart contract to do so.
As TheStandard.io allows users to mint sEURO at a fixed 0% interest rate for an indefinite period there is also another key benefit. Let’s take an example here, if you have currently borrowed against your Bitcoin with a value of 100,000 Euros (85,000 Euros worth of sEURO) and have decided to pay back that loan to release the Bitcoin, during inflationary economic conditions, inflation will help pay off that debt because your position is effectively shorting the Euro. When you decide to pay back the loan, inflation has dropped the value of the fiat currency and will be cheaper to pay back that said loan. In addition, rare assets during inflation usually perform well as they have a limited supply (deflationary) and therefore are used as a great store of value.
HOW TO GET INVOLVED IN THE sEURO IBCO LAUNCH EVENT?
Do you want instant yields from our IBCO and get in early on a project that is aiming to change money? Check out the protocol’s initial stablecoin offering!
Users can now buy sEURO at a massive discount. As more liquidity comes into the pool, the discount will become less until we reach a 1:1 peg. The earlier you join, the bigger the discount.
Visit https://app.thestandard.io now to get started!
Check out thestandard.io for more details on how the IBCO works and instructions to do so!
RECENT MEDIA APPEARANCE
See our protocol lead Joshua Scigala in his recent interview with alternative finance legend David Morgan, in an intriguing discussion around CBDC’s, Precious metals, and the role DeFi can play in the near future for monetary freedom.
