ARTHX Genesis Extension and AIP16

Published in

MAHA

5 min readJun 29, 2021

In this article, we explain what is going to happen with the ARTHX Genesis, the steps we are taking, what Genesis holders can do with their tokens, and what it means moving forward.

Genesis is now extended by 3 days to July 2nd at 3 pm GMT.

Debt pools to launch allowing ARTH/ARTHX holders to redeem at a special price

The debt pool allows users to deposit their tokens into a pool and earn rewards from the pool in the form of USDC, with the caveat that the pools are deposit-only (ie there is no ability to withdraw from this pool).

This is done so that the protocol can create debt to all those users who deposit tokens into the protocol and pay the debt back using fees that the protocol will generate over time.

Participate in the pools here: https://polygon.arthcoin.com/#/lock-deposit

This has the benefit of ARTH v1 holders being able to redeem their ARTH tokens at $1 and ARTHX holders being able to redeem their ARTHX tokens at $0.012

These pools will be deposit-only; which means that once you deposit your ARTH/ARTHX, you won’t be able to withdraw them back. The deposited tokens are burnt out of circulation and debt is minted.

This in effect also reduces the ARTH/ARTHX circulating supply whilst giving ARTHX holders the option to redeem at 0.012$ as debt if the ARTHX price drops below 0.012$

The ARTHX pool is given a higher preference in being paid off first. All debt/fees will be paid out in USDC.

What to do if you are a ARTH holder?

As of now, the best thing is for you to deposit your ARTH tokens into the debt pool and await the protocol to collect enough fees to pay off holders.

The swap for ARTHX for ARTH holders has been disabled. So to avoid a rebase, depositing into the ARTH debt pool is your best option.

If you already swapped to ARTHX prior to the announcement, then we recommend you to deposit into ARTHX pool and reduce the ARTHX in circulation.

What to do if you are a ARTHX holder?

If you are a ARTHX holder and can bear the volatility that will come with ARTHX then you can continue to hold ARTHX. If not, then you will have the option to deposit into the pool and take debt from the protocol.

As an ARTHX holder, your choice is more flexible and we’ve made it so to give a preference to the initial holders.

Distributing fees to pay off the debt

As a stablecoin project, we expect that over time the protocol will generate enough fees to pay off this debt and allow for future growth whilst keeping the community together.

Out of all the fees generated by the protocol, over 25% of it will be used to directly pay all the participants in the debt pools. Overtime as the protocol and the ARTH stablecoin grows, the fees generated would be substantial to redeem.

Morever the team will be using the distribution contracts that were used from the Basis cash protocol to distribute the fees which implies that users get paid off instantly (in pieces) as and when the protocol generates those fees.

How to use the debt pools?

Once you open the website, you will find a new page with instructions on how to enter into the debt pool. There are two pools that will allow you to deposit either the ARTH or the ARTHX tokens.

Select either pool and you should be able to deposit your tokens into those pools. Once deposited, you will be paid over time as the protocol generates fees.

Participate in the pools here: https://polygon.arthcoin.com/#/lock-deposit

FAQs

How long will the debt pools be opened up for?

The pools will be open for 3 days however the ARTHX pool will be opened up for slightly longer.

This allows the initial ARTHX traders to have an option of depositing into the ARTHX debt pool should the price go below the starting 0.01$ price.

Will I be affected by the rebase?

The rebase is only for ARTH holders who don’t deposit into these pools.

You won’t be hit by a rebase if you’re an ARTHX holder and if you’ve already deposited into this pool.

Can I swap ARTH to ARTHX?

No. As per the recent proposal, the swap function has been disabled and a new debt pool has been introduced to that effect.

Can I still commit collateral to get ARTHX?

Yes. Users can commit collateral until July 2nd, in the form of USDC, USDT, Matic, WETH, WBTC to get a 30% discount on ARTHX.

I have both ARTH and ARTHX. What should I do?

ARTH holders should participate in the debt pool to avoid the negative implications of a rebase. ARTHX holders can choose between either; participating in the debt pool or holding ARTHX.

Please note: Participants/inhabitants from China, South Korea, Singapore, Japan, Canada, USA, Puerto Rico, Brazil, France, Malaysia, Nigeria, Philippines, Russia, UK, US Virgin Islands, & any other possessions of the United States are not permitted to participate in any kind of sale conducted by MahaDAO because of restrictions enacted in the said regions.

About MahaDAO

MahaDAO is a community-powered, decentralized autonomous organization on a mission to empower billions to preserve their purchasing power through the world’s first valuecoin, ARTH.

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