Standard delivers the first Collateralized, Rebasable Stablecoin (CRS) protocol. It tempers the volatility of the previous generation of Algorithmic stablecoins, with the stability of traditional collateralized solutions.
Effectively acting as a reserve bank with decentralized governance, Standard issues a collateralized stable coin valued at $1 with an elastic supply determined by a rebase mechanism.
The purpose of an algorithmic stablecoin is to have a peg with a currency, usually the U.S. Dollar, by using a mathematical algorithm to control supply in order to maintain the peg at all times.
To keep the 1 token = 1 dollar peg, the algorithmic stablecoin’s protocol essentially must mint and burns tokens. It can do so by either buying and selling coins directly, or by creating incentives for users to buy and sell their coins.