Umbrella Network Announces Partnership With MahaDAO

Published in

Umbrella Network

3 min readFeb 16, 2021

Umbrella Network is pleased to announce a partnership with MahaDAO, a stablecoin platform that has launched the world’s first valuecoin, ARTH(arthcoin.com). ARTH is a stablecoin platform that is not pegged to the US Dollar, but instead pegged to the Global Measurement Unit (GMU) and hence is able to appreciate over time against the US Dollar. Under this partnership, MahaDAO’s algorithmic stablecoin ARTH will use Umbrella Network’s oracles to securely price its GMU, which is a mixture of assets that keep its token price stable.

TL;DR

MahaDAO’s ARTH stablecoin is pegged to a non-correlated and well-diversified basket of assets also known as the GMU.
Umbrella Network’s oracles will securely and scalably provide the diverse set of asset data, both real world and crypto, to MahaDAO.
To this end, MahaDAO will use Umbrella’s oracles to determine the price of the assets in their GMU, which is critical in keeping the ARTH price value-stable.

MahaDAO’s ARTH stablecoin uses a non-correlated and diversified mixture of fiat and crypto assets to keep the token value-stable. Determining the current prices in real-time is essential. As standalone entities, blockchains do not have access to off chain information, and must rely on oracles like Umbrella Network to access real-world data.

Unlike conventional oracles that process one datum per transaction which can be both slow and expensive, Umbrella Network’s Merkle Tree architecture enables batch processing of thousands of transactions, while ensuring data-integrity, which can translate to a significantly lower transaction cost. As a 100% decentralized, community-owned oracle, Umbrella is able to meet the needs of MahaDao to provide secure, verifiable, scalable and low cost oracle data so that they can maintain the ARTH stablecoin’s asset basket for accurate price discovery.

Additionally, as a fellow Polkastarter project, MahaDAO’s partnership with the Umbrella Network is a further step forward for the Polka community as like-minded projects collaborate and continue to grow and develop together.

Speaking on the partnership, Sam Kim, Partner at Umbrella Network said, “We are excited to partner with another fellow member of the Polkastarter community. Umbrella Network’s oracle solution will provide MahaDAO with all of the asset data they need and with the speed and verifiability necessary to support the critical job of maintaining ARTH as a stablecoin through the accurate price determination of its highly diversified mix of both traditional and digital financial assets.”

Steven Enamakel, Creator of MahaDAO, said, “Algorithmic stablecoins are the future of DeFi and we’re honored to be one of the pioneers. I’m glad that the Umbrella Network shares our vision for the future and will be working with us to provide secure and accurate community-driven oracle data to make our ARTH stablecoin the world’s first non-depreciating currency.”

About MahaDAO

MahaDAO is a stablecoin platform that is governed in a decentralised manner by the MAHA token holders. ARTH is designed to counter wealth depreciation by maintaining its purchasing power, regardless of the fluctuation in other market assets. Because of its direct peg with the Global Measurement Unit (GMU), it can provide a value stable asset as an alternative to conventional stablecoins.

Umbrella Network Announces Partnership With MahaDAO

Written by Umbrella Network Team