Decentralized, over-collateralized stablecoin protocol TheStandard has integrated Chainlink Automation and Chainlink Functions to power secure, data-driven redemptions for its USD-pegged stablecoin, USDs.
The redemption mechanism allows holders to burn USDs in exchange for underlying collateral when the stablecoin dips below its target value. This ensures USDs maintains its peg by helping to restore market confidence and incentivizing arbitrage. Chainlink’s decentralized infrastructure now permits this process to run on autopilot.
Automation is a decentralized service that allows developers to automate critical onchain functions at regular time intervals or in response to external events, increasing efficiency and minimizing potential for human error. TheStandard is using Automation to regularly check if the USDs pool falls below its redemption trigger price, at which point it pulls the next redeemable vault and appropriate collateral from onchain storage.
Functions is a serverless web3 development platform that allows decentralized applications to integrate a range of real-world data sources including public or password-protected APIs, IoT devices, and enterprise systems. Functions retrieves fresh vault data directly from TheStandard’s API and returns it securely to the smart contract, where it is stored for the next time Automation triggers USDs’ redemption mechanism.
Automation and Functions leverage Chainlink’s time-tested oracle infrastructure, which has securely enabled over $20 trillion in transaction value. The combined integration allows TheStandard to make its system more trustless, efficient, and resilient by facilitating reliable automation and accurate offchain data without the need for centralized bots or manual intervention.
To learn more about TheStandard, visit their website, X, Telegram, Discord, and GitHub.