January 15 : Admist a recent media frenzy surrounding bitcoin, the cross-chain DeFi protocol, MahaDAO, is seeking to take a step forward with the launch of ARTH – the first value coin in the world. A value coin, like its name signifies, purports to be stable in value regardless of movements in the market; unlike many other cryptocurrencies which experience frequent volatility.
ARTH, the algorithmic stable coin, was officially rolled out at 15:00 GMT on Ethereum today, with a launch on Matic also being expected in the coming days.
According to information provided to Crypto Daily, ARTH has been designed in order to improve upon existing stablecoins (which are said to spend lengthy periods in expansion or contraction phases), whilst also having the additional benefit of incentivizing DeFi users to pool cross-chain assets and mint MahaDAO’s native valuecoin.
As of today, assets can be deposited to MahaDAO pools (10+), including YFI, COMP, CURVE and MATIC.
In terms of how the project intends to maintain the price of its token, MahaDAO has implemented a ‘seigniorage share model’.
Steven Enamakel, co-founder of MahaDAO, said:
“we’ve engineered ARTH to ensure that it will be much more stable, making it suitable for a range of defi applications from lending to staking as well as real world, non crypto use cases.”
Going deeper into the tokenomics, according to MahaDAO, users who buy ARTH bonds will exert a direct effect on the Uniswap price of the ARTH-DAI pool without reducing the supply of ARTH; something which is said to exert a stronger effect on the ARTH-DAI price, resulting in greater price stability for the token.
Additionally, the project has informed Crypto Daily that there will also be a secondary feature which will utilize a stability fee to be paid in MAHA tokens, and will be to slow the rate at which users redeem bonds; further reducing ARTH price velocity.
The latest announcement follows the recent uproar regarding bitcoin’s illicit utilities and volatile value proposition, with the latter coming under much criticism, yeilding renewed discussions around the importance of stablecoins.
MahaDAO is therefore providing an interesting value proposition during a tumultuous time for cryptocurrency, and this latest launch of ARTH may provide many disillusioned people with the opportunity to experiment with an innovative new cross-chain protocol – all whilst interacting with the gamified reward system which has become a defining feature of the DeFi space.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other investment advice.
Title: MahaDAO launches the world’s first value coin on Ethereum
Sourced From: cryptodaily.co.uk/2021/01/mahadao-value-coin-ethereum
Published Date: Fri, 15 Jan 2021 15:00:21 +0000
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