Why TheStandard Chose to Build on Arbitrum

Why TheStandard Chose to Build on Arbitrum

At TheStandard.io, we are committed to revolutionizing the decentralized finance (DeFi) landscape by offering unparalleled borrower flexibility and innovative financial solutions. As an Arbitrum-native CDP (Collateralized Debt Position) protocol, our focus is on creating a seamless and efficient user experience. Here's why we strategically chose to build on Arbitrum and how it aligns with our mission.

TheStandard: A New Paradigm in Borrowing

TheStandard stands out in the DeFi ecosystem with features designed to maximize borrower flexibility and enhance financial inclusion:

• Multi-Collateral Vaults: Users can lock up a diverse portfolio of assets into a single account-abstracted vault.
• Collateral Trading: Leveraging Arbitrum's Uniswap, users can trade between collateral types within the platform.
• 0% Interest Loans: Soon to include yield-bearing vaults, allowing users to earn while their collateral is locked.
• True 110% Collateralization: Ensuring no arbitrary third-party redemptions, with liquidation pools to maintain a healthy collateral-to-debt ratio.
• Income Distribution: Fees from collateral trading and debt minting are distributed to staking pools.
• Multi-Stablecoin Output: Starting with EUROs, with plans to introduce USDs soon.
• Dynamic NFTs: Representing CDP smart vaults, enabling the sale of debt and locked collateral in a single transaction.
• Yield Bearing Vaults: V4 Vaults will include a chance to earn yield on your locked collateral.

Why Arbitrum?

Our choice of Arbitrum as the foundational layer for TheStandard.io was driven by several compelling reasons:

1. EVM Equivalence

Arbitrum maintains full compatibility with the Ethereum Virtual Machine (EVM), ensuring seamless integration with existing Ethereum-based smart contracts and tools. This compatibility allows developers to write smart contracts in familiar languages like Solidity and Vyper without modifications, facilitating a smoother development process and enhancing interoperability with the Ethereum ecosystem.

2. Lower Transaction Costs

Arbitrum significantly reduces transaction fees through its optimistic rollup technology. By batching multiple transactions into a single block, Arbitrum minimizes the gas fees associated with individual transactions. This cost efficiency is crucial for TheStandard.io, enabling us to offer low-cost financial services and attract more users to our platform.

3. High Scalability

Arbitrum's optimistic rollups provide exceptional scalability, allowing for up to 40,000 transactions per second (TPS). This high throughput is essential for TheStandard as it supports our goal of providing a responsive and efficient user experience, even as we scale and attract more users.

4. Robust Ecosystem

Arbitrum boasts a vibrant and growing ecosystem with over $6 billion in Total Value Locked (TVL) and widespread support from top DeFi protocols like Uniswap, The Graph, and Chainlink. This thriving ecosystem provides TheStandard with ample opportunities for integrations and collaborations, enhancing our platform's capabilities and reach.

5. Censorship Resistance

Arbitrum's design includes mechanisms to ensure censorship resistance. Transactions are processed by sequencers and posted on Ethereum, with provisions to handle any delays or malicious actions by sequencers. This ensures that TheStandard can offer a secure and reliable platform for all users.

Strategic Focus on Arbitrum

By concentrating our efforts exclusively on Arbitrum, TheStandard.io aims to avoid the dilution of liquidity across multiple chains and enhance the user experience within the Arbitrum ecosystem. Our research and development initiatives are focused on integrating liquidity from various networks into Arbitrum, allowing users to leverage their assets more efficiently for borrowing purposes.

Future Expansion Plans

While our immediate focus is on deepening liquidity and optimizing the user experience on Arbitrum, we are actively exploring opportunities to deploy TheStandard.io on other blockchain networks in the future to become multi-chain. This strategic approach will enable us to provide even greater flexibility and accessibility to our users as we expand our presence in the DeFi space.

TheStandard.io's decision to build on Arbitrum aligns with our mission to provide the easiest and cheapest way to borrow against a diverse portfolio of assets. Arbitrum's EVM compatibility, lower transaction costs, high scalability, robust ecosystem, and censorship resistance make it the ideal platform for realizing our vision. As we continue to innovate and expand, we are committed to leveraging the strengths of Arbitrum to deliver exceptional value and flexibility to our users. Additionally, by exploring future deployments on other chains, we aim to further enhance the accessibility and versatility of our platform.