Polygon’s decentralized finance (DeFi) matrix is set for further expansion as MahaDAO readies the launch of the world’s first “valuecoin” on the network. MahaDAO’s value coin is a collateral-backed stablecoin with added yield farming capabilities for the algorithmic stable currency.
ARTH Stablecoin to go Live on Polygon
According to a press release shared with BTCManager, DeFi project MahaDAO is set to release the world’s first valuecoin. The ARTH issuer is reportedly ready to launch its algorithmic stablecoin on the Polygon network.
MahaDAO’s ARTH token is a stablecoin fully backed by a basket of collateral unlike the likes of fiat-pegged stablecoins like Tether (USDT) which are tied to fiat currencies. In the case of ARTH, the algorithmic stablecoin is backed by Bitcoin (BTC), gold, and fiat currency with BTC occupying 5 percent asset weight by gold and fiat constitute 15 percent and 80 percent respectively.
The ARTH launch on Polygon is expected to happen on June 22 with plans for the stablecoin to also launch on other blockchains like Ethereum (ETH) and the Binance Smart Chain (BSC) network.
According to the press release, ARTH’s launch on Polygon will be followed by the activation of yield farming for the fractional reserve stablecoin. Users will receive rewards in MahaDAO native token, MAHA, and ARTHX — a deflationary “coin” used to ensure the stability of ARTH.
Per an announcement issued back in February, MAHA and ARTH are listed on the BitMax crypto exchange.
ARTH yield farming will reportedly be available on decentralized exchange platforms like DFYN and SushiSwap. By yield farming to earn more MAHA tokens, users will also be able to play a greater role in the MahaDAO governance since the native token offers voting rights on issues such as the weighted pegs in the asset basket.
For instance, MAHA holders may elect to hold a vote to reduce the weight of fiat in the ARTH asset peg basket.
In preparation for the launch, prospective users can pledge collateral using Tether (USDT), USD Coin (USDC), Dai (DAI), Ether (ETH), and Polygon (MATIC) to earn ARTHX tokens. Participating in the launch event will also offer users the chance to take part in a lottery to receive NFTs from the MahaDAO team.
By launching yield farming for ARTH on Polygon, MahaDAO is joining a raft of DeFi protocols expanding the Ethereum scalability protocol. In May, the protocol released SDK tools to enable developers to easily deploy Ethereum-compatible chains.