Inflation is a massive issue in a number of countries, and due to COVID-19 pandemic and relief programs that many countries have come up with, it threatens to become an issue for a lot more nations in the future. 

One thing to understand about inflation is that it is an issue that can emerge anywhere, even in the US (currently, US inflation sits at approximately 5%). However, there are many other countries whose currencies are weakening, as well. What this means is that any money that their citizens managed to save and put aside, is losing its value. 

This is why many financial experts would advise people not to save up money, but to exchange it for more stable assets, such as gold. However, with crypto currencies playing an increasing role in the financial world, different solutions are being developed which will create a new world of retail banking - enter, the newly-launched TheStandard.io.

What is TheStandard.io?

TheStandard.io is a new decentralized finance project that aims to help solve the issue of inflation. It is a DeFi infrastructure project that allows users to secure their own financial future by using asset-backed loans without the need of intermediaries.

The protocol’s focus is on using both digital (Bitcoin and other cryptocurrencies) and physical (gold and other metals) assets as collateral. And, of course, as a decentralized project, it is 100% managed by the community of its token holders, rather than by any centralized authority.

But, What Does All of this Really Mean?

As mentioned previously, inflation is a growing issue around the globe, and it is causing many to move towards hard assets that will maintain value. However, this also means that the mentioned hard assets, such as gold, are just sitting in vaults around the world, gathering dust. Gold is a good store of value, but it is not great at helping users increase value, or access their money.

TheStandard.io’s approach is two-fold. The first thing that it does is that it actually makes inflation beneficial for people. This might seem strange at first, but due to the fact that loans become cheaper and easier to pay back, as inflation increases, it is a tangible benefit. Meanwhile, the second way in which it helps is that it issues liquidity to asset holders without them actually having to sell their assets.

Essentially, the project allows users to lock up their physical and digital assets in smart contracts. Those assets then act as collateral, allowing users to take out loans. There is no need for intermediaries or third parties of any kind. 

As the project’s co-founder, Joshua Scigala, said, 

“The project will allow users to create their own, private gold standard, instead of having to wait for the governments to do it for them.”

As a result, TheStandard.io will create an alternative to retail banking, which will be new, and fairer than the current system, according to another co-founder of the project, Laurin Bylica. He added that this approach will be a new competitor to retail banking, which the project’s officials call decentralized asset-backed banking.

There is also the project’s native cryptocurrency, the Standard Token, which grants its holders the ability to participate in the governance system of the protocol. Doing so comes with a few benefits of its own, including rewards for active voting , discounts on stability fees  as well as access to liquidated assets below the spot price.