Introducing ARTH Bonds ($ARTHB)

The ARTH platform is now live & kicking. We are extremely proud to say that we have won half the battle by conducting a successful expansion phase and the price of ARTH is now finally below its peg; $1. The next biggest milestone for the entire community is to successfully see through the next phase: Contraction. If we are able to do this, we have apparently created a system that can algorithmically stay stable.

Today, we are officially entering into what will be the first contraction phase for the ARTH valuecoin. While it was seemingly easy to understand what needed to be done in the expansion phase to earn rewards while the supply was expanding, it is obvious that some community members & participants are finding it difficult to wrap their heads around the idea of a contraction phase.

First off, we would like to say that the contraction phase is one of the key aspects of any algo coin & while many algo coins have struggled to get past their extremely long contraction phases, MahaDAO is optimistic that we should be able to see a favourable outcome with our contraction phase, due to the measures we have taken to establish our system. These measures are summed up in our Gitbooks. The links to which are as follows:

• Stabilizing mechanism in ARTH -Read here
• Tying ARTH Bonds to the Uniswap price — Read here
• Providing seigniorage distribution to LP— Read here
• Stability fees in MAHA — Read here

Introducing ARTHB — What they are?

ARTH Bond are tokens that are issued when ARTH is trading below its target price (currently $1). Thus, anytime the 12-hr TWAP price of ARTH is below 0.95$, ARTH tokens are issued & sold by the protocol as a measure to encourage users to bring ARTH back to its target price. Read more about ARTH Bonds here.

ARTH Bonds are not issued directly as rewards to current ARTH Holders. Almost anybody can buy ARTH Bonds, as it is a highly lucrative asset that can often offer a high ROR.

$ARTHB: Price & Discount

ARTH Bonds or $ARTHB is always issued at a discounted price than the ARTH price. Currently, this discounted price is at a 20% discount from the 1 hr TWAP price of ARTH.

As an example, if the 1-hr TWAP is .80$, ARTHB can be bought at .64$

ARTHB: Returns

Because ARTHB is offered at a 20% discount from the 1-hr TWAP, there is a chance of a higher ROR.

As an example, if the 1-hr TWAP is .80$, ARTHB can be bought at .64$ & later redeemed at a 1:1 ratio with ARTH when ARTH’s price is above $1. This means a 56.25% ROR (not taking into consideration tx fees & 1% stability fees in MAHA).

How to buy $ARTHB

ARTH Bonds are always issued at epochs when the 12-hr TWAP of ARTH is below $0.95. A user has to buy ARTH Bonds with DAI. Thus, the only pre-requisite to buying ARTHB is having DAI.

Here are the steps involved in buying ARTHB:

• Visit https://arthcoin.com/#/bonds
• Click on Unlock wallet, if you haven’t yet connected your wallet
• Click on Approve DAI & confirm the transaction on Metamask
• Click on Approve ARTH & confirm the transaction on Metamask
• Once approved, click on Purchase, this will open a popup
• Enter the amount of ARTHB, you would like to buy
• Click on Purchase again & confirm the transaction

How to redeem $ARTHB

ARTH Bonds can be redeemed when the current price of ARTH is above $1. A user has to pay a 1% stability fee in MAHA. Thus, the only pre-requisites to redeeming ARTHB is having the required amount of MAHA in your wallet & the ARTHB you purchased. If you don’t have MAHA, you can purchase the same from one of the exchanges MAHA is listed on, for example, Uniswap.

Here are the steps involved in redeeming ARTHB:

• Visit https://arthcoin.com/#/bonds
• Click on Unlock wallet, if you haven’t yet connected your wallet
• Click on Redeem in the Redeem ARTHB card
• Click on Approve ARTHB & confirm the transaction on Metamask
• Enter the amount of ARTHB, you would like to redeem
• Click on Redeem again & confirm the transaction

Please note: ARTHB can be redeemed at any price above $1 but is always rewarded at a 1:1 ratio with ARTH.

FAQs

When are ARTH Bonds issued?
ARTH Bonds are always issued at epochs if the 12-hr TWAP of ARTH is below $0.95

Do I need $MAHA to buy/redeem ARTH bonds?
Although, you don’t need $MAHA to buy ARTH Bonds, while redeeming ARTH Bonds, a 1% fee is charged in MAHA. Thus, you will need MAHA to redeem bonds.

Do I need to buy ARTH Bonds or they are rewarded if I hold ARTH?
ARTH Bonds are not rewarded but need to be bought.

How are ARTH Bonds holders paid when they redeem their bonds? ARTH Bonds can only be redeemed when ARTH’s price is $1+. When ARTH price officially gets over its target price, new ARTH is minted. Out of all the ARTH minted, 90% is used for paying back ARTHB holders who want to redeem their Bonds.

Can ARTHB expire ever?
No, ARTH Bonds never expire. You can redeem them whenever you like until the price is more than the current target price (currently $1).

What is dynamic epoch?
More on this can be found here — https://docs.arthcoin.com/arth-201/dynamic-epochs

When is the 12-hour TWAP updated?
The 12-hour TWAP is updated at every epoch.

Questions from the community…

If I add more liquidity to my currently existing liquidity, does the lockup for the entire LP reset itself to another day?
Yes.

If I buy ARTHB. Then later ARTH goes above 1.05 and hence in the expansion phase. I have two options- one is to redeem my bond, second is not to. If I hold my ARTHB, will I be getting the share out of the 90% of the newly minted ARTH? By keeping ARTH?
Yes, it’s not a reward but rather paying back the ARTHB holders; ARTHB goes in and ARTH comes out. When ARTH price officially gets over its target price in the following epoch, new ARTH is minted as the system is now in expansion. Out of all the ARTH minted, 90% is used for paying back ARTHB holders who want to redeem their Bonds. The remainder 10% is then distributed as Seigniorage if we are in expansion mode as per the following:

When I redeem my ARTHB after ARTH is more than $1, do I receive back DAI or ARTH? A user can choose between the 2. If DAI is selected, then the protocol will further sell the ARTH equivalent for DAI

Can ARTHB be redeemed only at the price target of $1, not at $1.01 or above? If it can be redeemed at a higher rate, do I get the current redeemed price or $1?
ARTHB can be redeemed at any price above its target price. However, ARTHB is always redeemed at a 1:1 ratio with ARTH.

How is ARTH & ARTHB different from other algo stable coins like ESD, DSD and others that are stuck in debt and bonds/coupons don’t work?
ARTH is different than other algo stablecoins on various parameters.

The major difference being that ARTH Bonds are only minted when arth is bought back from uniswap. While, in ESD/DSD coupons are minted when esd/dsd is burnt. Burning coins have a weak impact on the price. But buying back and burning coins has a stronger impact on the price.

More differentiating parameters can be found here — https://docs.arthcoin.com/arth-201/arth-vs-other-stablecoins

At the moment the ARTH target price is $1, when will the target price be calculated using the GMU?
The GMU Target price will be updated every week.

How exactly governance will be organised, do you have any specific plan which you can share with community?
MahaDAO governance will come into the picture very soon. All MAHA holders will have a right to vote on multiple parameters & improvements in ARTH & the entire ecosystem.

What is the max supply of ARTH?
Because ARTH is an algo stablecoin, there is no max supply for ARTH. It is based on how much demand there is for ARTH, more demands means supply will increase per Epoch.

About MahaDAO

MahaDAO is a community-focused decentralized autonomous organization that is launching the world’s first valuecoin, ARTH.

MahaDAO Official Links

Telegram | Telegram ANN| Twitter | Discord | Github| Website | Gitbook

Disclaimer: None of this should be considered as financial advice. Please do your own due diligence before participating in any of the activities listed above. 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. Moreover, this is not to be construed as financial advice.