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Standard Money

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Architecture Overview

Standard Money is a synthetic dollar protocol built on BSC (Binance Smart Chain) that creates USDsd, a synthetic, collateralized version of Tether. The protocol maintains USDsd’s peg through sophisticated delta-neutral hedging mechanisms and basis trading strategies.

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How It Works

1

Collateral Deposit

Users deposit supported collateral (USDT, USDC) into the protocol
2

USDsd Minting

The protocol mints USDsd tokens backed by the deposited collateral
3

Basis Trading

The protocol automatically executes basis trades by shorting perps and longing spot
4

Revenue Generation

Protocol earns revenue from basis trading profits and funding payments
5

Reward Distribution

Revenue is distributed to sUSDsd holders as rewards

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Supported Collateral

Provider: Tether Limited

Collateral Ratio: 1:1 (100% backing)

Liquidity: Highest liquidity on BSC

Risk: Minimal (primary collateral)

Provider: Circle

Collateral Ratio: 1:1 (100% backing)

Liquidity: High liquidity on BSC

Risk: Minimal (stablecoin collateral)

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Security Model

Multisig: All critical functions protected by multisig wallets

Timelocks: Important parameter changes have timelock delays

Upgradeability: Controlled upgradeability

Custody: Assets held in institutional-grade custody

Hedging: Automated hedging with multiple exchange partners

Monitoring: 24/7 monitoring of all protocol operations

Emergency: Emergency pause mechanisms for critical situations

Reserve Fund: Protocol maintains a reserve fund for negative funding

Risk Management: Comprehensive risk management framework

Insurance: Protocol insurance for extreme scenarios

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Protocol Revenue

The Standard Money protocol generates revenue through multiple sources:

Basis Trading Profits

Revenue from automated basis trading between spot and futures markets

Funding Payments

Revenue from perpetual futures funding payments

Liquidity Provision

Revenue from providing liquidity on perpetual order books

Cross-Exchange Arbitrage

Revenue from price differences between exchanges
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