MahaDAO’s ARTH algorithmic stablecoin will go live on the Polygon network, a scaling solution to build on Ethereum’s Layer 2, effective June 22.
The MahaDAO team defines its native token as the world’s first valuecoin that fights US Dollar inflation and maintains its purchasing power over time. Compared to other stablecoins like Tether (USDT), which are tied to fiat currencies, ARTH is pegged to a basket of uncorrelated assets. Specifically, ARTH taps a complex system that consists of “5% bitcoin, 15% gold, 80% fiat,” which can be redeemed or bought when the peg is thrown off.
Layer-2 solutions such as Polygon offers a well-structured, easy-to-use platform for Ethereum scaling and infrastructure development, extending its network appeal to a wider user base. ARTH is also set to be deployed on Ethereum, Binance Smart Chain (BSC) and other blockchain networks at an undisclosed point in the future, the team said.
MahaDAO has also a governance token called “MAHA,” which allows holders to vote on savings rates, stability fees, direction, strategy and future course of action for the ARTH coin.
MahaDAO explains:
“After launching on June 22, MahaDAO will enable users to farm its new collateral-backed stablecoin, with rewards paid in MAHA and ARTHX tokens. A swap function will allow users to swap between the three stablecoins with virtually no network fees.”
Polygon Protocol Gathers Steam
Both early supporters and long term users who are keen to participate in the MahaDAO Genesis will get an opportunity of earning greater incentives. This includes distribution tickets to win a NFT as a part of a rewarding model once the new staking mechanisms are introduced for Polygon. For this purpose, investors can pledge collateral in the form of USDT, USDC, DAI, ETH, and MATIC in exchange for ARTHX tokens. ARTHX is a deflationary token designed to absorb the volatility of ARTH and guarantee its stability.
Polygon will incentivize long term users without releasing large quantities of ARTHX tokens into the DeFi ecosystem. This is a completely new form of staking, designed for keeping users in the system.
MahaDAO is the latest in a lengthening list of DeFi protocols migrating to or launching versions on a Layer 2 network for faster and cheaper transactions. Another primary reasoning behind this move is to avoid the congestion on the Ethereum network.
Polygon was chosen for its ability to offer yield farming and attract liquidity from big names in DeFi like SushiSwap and DFYN. The protocol essentially unites digital assets, lending and swapping into one platform governed by its native token.
Polygon uses an experimental solution called Plasma to improve the functionality of the Ethereum blockchain by drastically increasing its network scalability and overall transaction speed. The core idea is to deploy its own Proof-of-Stake (PoS) blockchain and Commit Chain connectivity to shift transactions off the clogged Ethereum base layer to a super-lightweight rail running parallel to it.