TheStandard.io Offers A New Way Of Protecting Users Against Inflation
A lot of financial experts these days are very concerned about the future of the financial world. The reason for this is the fear of upcoming inflation, which may or may not arrive in years to come. This pessimistic future outlook should concern everyone, but, on the bright side, there are new approaches for dealing with these kinds of problems.
Long-Term Effects Of COVID-19
The primary reason why so many people are worried about the future is COVID-19. More precisely, the massive amounts of extra money that were printed to help out hundreds of millions of people who needed it when the pandemic first started.
As many may remember, those first days of the coronavirus were marked by businesses shutting down, people losing jobs, families struggling to get by, and more. While the governments’ help did provide momentary relief, they will have a negative and heavy impact on the economy in the long run.
What Can Be Done About it?
For the most part, the upcoming issues are out of anyone’s hands. However, people can still protect themselves from inflation and other financial woes by using their money to purchase hard assets, such as gold bullion. That is actually what many wealthy people did — investing in assets whose prices will not go down once the native currency - US Dollar, Euro, or other - crashes.
However, that also means there are trillions upon trillions worth of gold reserves stuck in vaults around the world, gathering dust. A new project, TheStandard.io, wants to put these hard assets to better use.
What does TheStandard.io have in Mind?
First of all, TheStandard.io is a new DeFi infrastructure project that allows users to make use of their physical and digital assets alike. Essentially, the project lets people use both physical and digital assets as collateral and take out loans.
More than that, it takes away the fear of potential inflation, as the inflation would mean that these loans would be cheaper to pay back. The second benefit of using The Standard is how it issues liquidity to asset holders, without making them sell their assets.
The way it all works is rather simple. Users can use the power of blockchain technology, or rather, its smart contracts, to offer physical and digital assets as collateral against loans. These loans can then be received from the network automatically, with no need to use intermediaries, to pay for expensive third parties, or to wait for a long time to get the paperwork approved. In fact, there is no paperwork, at all.
The digital smart contract uses advanced algorithms and other information to determine the collateral’s worth, how big of a loan users are taking, when they should pay it back, what the interest is going to be, and so on.
TheStandard.io also has its native cryptocurrency, the Standard Token, which will grant those who hold it additional benefits. One benefit is accessing liquidated assets below the spot price, as well as a discount on the stability fee. Plus, those who hold Standard Token can participate in the project’s governance, meaning that they can vote on important decisions that will affect the future of the project.
Standard Token holders will even get rewards for being active participants, which could be an interesting way for users to make passive income without having to do much. All that is required is contributing a bit of their time to the project, and help make important decisions about its future.
The project’s entire vision is to take away the fear of inflation by using all the benefits that the crypto world and other alternative assets have to offer. In turn, this permanently solves one of the biggest financial issues that is already troubling numerous countries. That trend will only become more prevalent globally, yet there is still time to prepare for the worst.
