TheStandard.io Integrates Chainlink Automation and Functions To Enhance Zero Interest Borrowing

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We’re excited to announce that TheStandard—a next-generation decentralized stablecoin protocol offering zero-interest loans—has integrated Chainlink Automation and Chainlink Functions, the standard for smart contract automation and custom computation, live on Arbitrum mainnet. TheStandard is leveraging Chainlink to enhance the stability of its USDs stablecoin and protect user positions. 

We chose Chainlink Functions because it provides smart contracts access to trust-minimized compute infrastructure, allowing us to fetch data from APIs and perform custom computation in a highly secure way. Smart contract sends source code in a request to a Decentralized Oracle Network (DON), and each node in the DON executes the code in a serverless environment. The DON then aggregates all the independent return values from each execution and sends the final result back to your smart contract.

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We decided to use Chainlink Automation to power TheStandard’s decentralized lending protocol because it is the most reliable, gas-efficient Web3 automation service, and solves a fundamental blockchain limitation: the need for manual transaction triggers. While traditional blockchain operations require user-initiated transactions, Chainlink Automation enables TheStandard's protocol to automatically execute complex operations when specific conditions are met. Chainlink Automation is operated by the same pool of time-tested, provably reliable node operators that currently help secure tens of billions of dollars in DeFi, even during record levels of network congestion and extreme volatility. The proven infrastructure of Chainlink helps ensure that the system automatically withdraws collateral from yield pools and enables smart vaults to repay debt at a discount using the USDs, creating a self-correcting mechanism that helps restore the peg while also giving the borrower a discount. 

TheStandard is leveraging Chainlink Automation for its innovative peg stability mechanism. When the USDs stablecoin deviates from its peg, Chainlink Automation triggers a self-correcting process that benefits both borrowers and the protocol:

• If USDs trades below its peg (for example, at $0.95), borrowers automatically repay their loans at a discount. A borrower owing 1,000 USDs (normally worth $1,000) could repay their debt by purchasing those USDs for approximately $950.

This creates a win-win situation—borrowers save on loan repayment, while the buying pressure helps restore USDs to its intended $1 peg. Without Chainlink Automation, this mechanism would require constant manual monitoring and user-initiated transactions, making it impractical at scale.

Chainlink Automation delivers the strongest security guarantees in the smart contract economy, with verifiable compute provided via Chainlink's OCR 3.0 consensus mechanism. With Automation’s high reliability and performance, transactions are assured to be identified and confirmed quickly. Chainlink Automation also lets developers offload any smart contract computation offchain in a verifiable and ultra-reliable manner, allowing them to automate even the most intricate Web3 use cases, with a broad set of triggers.

Some of the notable features of Chainlink Automation include: 

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• Highly reliable, performant, and decentralized automation — Chainlink Automation ensures transactions are identified and confirmed quickly even during periods of heavy network congestion by leveraging Chainlink’s battle-tested transaction manager.
• Time-tested and cost-effective infrastructure — Chainlink Automation enables projects to eliminate in-house automation infrastructure costs, reduce resources spent on DevOps, and increase speed and efficiency. Users can offload their expensive onchain computation offchain to Chainlink Automation’s decentralized oracle network, with a significant reduction in gas costs, while maintaining the same strong cryptographic guarantees. 
• Built to enable faster scaling — Chainlink Automation enables us to scale faster and avoid the challenges that come with building and maintaining the infrastructure needed to reliably automate across multiple chains.
• Unlocks new use cases — With smart contract automation, verifiable compute, and a broad set of triggers, we’re able to explore new use cases and unlock capabilities that would otherwise not have been possible.

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"We're thrilled to integrate Chainlink Automation and Functions into TheStandard's protocol," said Joshua Scigala, the Co-Founder of TheStandard.io protocol. "Chainlink's reliable infrastructure enables us to automatically maintain the stability of USDs and offer a seamless, self-correcting lending system, all while reducing operational costs, increasing scalability, and enhancing our security."

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About Chainlink

Chainlink is the standard for onchain finance, verifiable data, and cross-chain interoperability. Chainlink is unifying liquidity across global markets and has enabled over $18 trillion in transaction value across the blockchain economy. Major financial market infrastructures and institutions, such as Swift, Fidelity International, and ANZ Bank, as well as top DeFi protocols including Aave, GMX, and Lido, use Chainlink to power next-generation applications for banking, asset management, and other major sectors. Learn more by visiting chain.link.

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About TheStandard

TheStandard is a revolutionary decentralized finance protocol transforming the borrowing landscape through zero-interest loans, trustless yield generation on collateral, self repaying loans and overcollateralized stablecoins. Operating on Arbitrum, TheStandard empowers users to maintain control of their assets while earning yields through concentrated liquidity pools. The protocol's flagship stablecoin, USDs, is backed by yield-generating assets, ensuring stability and transparency. With a commitment to security, TheStandard has undergone rigorous auditing by leading firms including CodeHawks and Cyfrin, and operates under a community-driven governance model through its TST token. Learn more at TheStandard.io.

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TWEET

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Zero interest borrowing protocol @TheStandard_io has integrated the Chainlink standard for smart contract automation and custom computation.

Chainlink Automation and Functions help TheStandard execute the StableCore redemption process and monitor its smart vaults. 

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