Value-Stable Coin ARTH From MahaDAO Comes To The Elrond Mainnet
The Internet of Money creates opportunities that span multiple national economies, business verticals, and measures of value. DeFi is already prototyping products whose mechanisms will eventually power the future of global finance.
It has become the norm for such products to track heterogeneous value as unique stable coins, often pegged to the US dollar. This is an effective way of measuring value in the short term, but the global conditions are always shifting. And when a measure becomes a target, it ceases to be a good measure, according to Goodhart’s law.
We are therefore excited to announce that the Value-Stable coin ARTH from MahaDAO is coming to the Elrond blockchain. Its purpose is to create a coin that is truly stable in value over time, so as to serve as a reliable medium of exchange and timeless store of value.
“Our mission is to create the technological and economical infrastructure that will help bring native digital money to its natural conclusion. eGold is a strong contender for becoming base currency and complementary with MahaDAO’s vision of creating timeless value-stable money.” said Beniamin Mincu, Elrond CEO.
ARTH is an algorithmic value-stable coin built using strategies like vault optimization, auto collateralization ratio, automatic rebalancing mechanisms, anti-correlated assets selection, purchasing power pegging, oracle price feeds, and more.
It is collateralized by a basket of currencies and commodities that are tracked and rebalanced according to a Global Measurement Unit (GMU) that accounts for global context that includes the economy, inflation, and currency risk.
“We are very impressed with Elrond’s unique positioning of a currency whose scarcity scales with its adoption. eGold is truly something else in this space and a solid contender to be included in our GMU asset basket.” said Steven Enamakel, MahaDAO Founder.
The collaboration will focus on issuing a portion of the ARTH value-stable coin supply onto the Elrond blockchain and include it in a number of innovative DeFi use cases. MahaDAO’s strategic use of meta transactions is a strong synergy with Elrond and will be natively supported by our protocol.
Elrond is the internet-scale blockchain, designed from scratch to bring a 1000-fold cumulative improvement in throughput and execution speed. To achieve this, Elrond introduces two key innovations: a novel Adaptive State Sharding mechanism, and a Secure Proof of Stake (PoS) algorithm, enabling linear scalability with a fast, efficient, and secure consensus mechanism. Thus, Elrond can process upwards of 15,000 transactions per second (TPS), with 6-second latency, and negligible cost, attempting to become the backbone of a permissionless, borderless, globally accessible internet economy.
The MahaDAO is a decentralized organization that is focused on revolutionizing money as we use it. By using blockchain technology, MahaDAO is creating the world’s first decentralized value-stable coin. ARTH is a new kind of money that maintains its buying power irrespective of which direction the market moves. It is collateralized against a mixed basket of currencies and commodities which are algorithmically rebalanced to account for inflation or risks and to preserve value.