MahaDAO and ARTH :Basic things you need to know about them.
Hey there. I am back again to decrypt some stuff for you again. Today I will be giving you an introduction to MahaDAO and ARTH valuecoin.
First of all What is ARTH?
ARTH is a decentralized algorithmic stablecoin that combines the best features of basket-pegged stablecoins and elastic stablecoins to create the world’s first “value-stable” cryptocurrency.
What makes it so different from other stablecoins?
It differs from other stablecoins as it is able to maintain its purchasing power over time, no matter which direction the market moves. This means as long as you invest for the long term, you will always be in profit.
How does it do that?
The ecosystem builds upon MakerDAO’s concept of DAI to pioneer new mechanisms, resulting in a coin that’s both value-stable and a raw measure of an asset’s buying power.
ARTH is able to do this as it is pegged to stable assets which are complete hedges of one other so that if one asset depreciates in buying power, the other appreciates. Thus, keeping the net buying power of the resulting coin stable.
What is MAHA?
MAHA is the governance and utility token that regulates the ARTH valuecoin and enables token holders to vote
Community members can use the MAHA token to vote on key aspects of the ecosystem in order to collectively manage the parameters that keep ARTH stable and in check such as:
- Savings rates
- Stability fees
- Protocol direction & strategy
- ARTH improvement proposals
Target Price of ARTH?
ARTH on the other hand has a target price that is dynamic and is based on an index (called as the GMU) that comprises of the following assets in its basket.
- 80% Fiat
- 15% Gold
- 5% Bitcoin
The price of ARTH shall start off from US$1. As the asset fluctuates, the index fluctuates as well. This means there will be periods with the ARTH’s cycle where the protocol will be in an expansion/contraction phase depending on the volatility on the target price as well.
UseCases of ARTH valuecoin
- No depreciation & loss of purchasing power
- Financial freedom with minimal volatility as it’s a value-stable currency that you control.
- Wealth creation, one of the foremost goals of human life
- Cross-border transactions
- Cross-chain liquidity enabling staking, lending, borrowing & trading of ARTH across chains
put into graphical representation, we can summarize it into this:
Top features of ARTH over other stablecoins
- Decentralization via Governance over protocol decisions
- Basket-backed collateral
- Elastic or algorithmic supply
- Pragmatic epoch durations
- Reasonable caps on debt and supply increases
That's all for now. For more information, check out their documentation. I hope this has given you an idea of what this new and amazing project is all about and the potentials of it skyrocketing this year and more years to come.
See you next time. Ciao!