Add ARTH/DAI Pool to the Gauge Controller

Gauge Proposals
#1

Summary:

ARTH is a fully backed stablecoin (110%+ collateral ratio) that aims to fight inflation.

We are currently doing a lot of work in Venezuela, helping the people there to use ARTH and protect their savings.

With the help of the curve community, we hope to further this mission by growing ARTH and impacting more people in high inflation countries.

We propose to add the ARTH-DAI pool into the Gauge controller. Pool Link

References/Useful links:

Protocol Description:
ARTH is a fully decentralized stablecoin backed by ETH as collateral. It aims to fight inflation by deploying a very unique price mechanism that appreciates ARTH whenever the underlying collateral appreciates.

This makes ARTH the first stablecoin that is designed to appreciate in a bull market but remain stable during the times of bear. This is how we fight inflation.

ARTH maintains its peg through direct arbitrage opportunities. ARTH’s price floor of $2.00 is protected through a redemption mechanism. At any time, ARTH holders can redeem ARTH against the system such that 1 ARTH = $2 of ETH.

When ARTH is redeemed, it is used to pay off the debt of the riskiest loans in the system in return for their collateral. When ARTH <$2, this is a profitable opportunity. Its price ceiling is protected by low collateral requirements, since a borrower can take out a loan at the 110% minimum and sell their ARTH on the market.

Motivation:

Curve is the defacto home for stablecoins. With CRV incentives we will be able to increase the liquidity which further has ripple effects in our work in Venezuela.

More liquidity for the ARTH stablecoin allows for bigger trades and subsequently, more attention to our mission.

Specifications:

  1. Governance: Currently the stablecoin is has it’s ownship to a multisig wallet that is owned by the team and various other advisors; however we are currently undergoing a migration to Aragon.

  2. Oracles: Does the protocol rely on external oracles? The protocol uses Chainlink with a fallback on Tellor. Ownership is revoked. Etherscan

  3. Audits: The protocol is a fork of Liquity and is audited by trail of bits. We have also conducted multiple other audits besides trail of bits; Trail of Bits , Hacken , Certik

  4. Centralization vectors: Currently the stablecoin is has it’s ownship to a multisig wallet that is owned by the team and various other advisors; however we are currently undergoing a migration to Aragon.

  5. Market History: Coingecko - ARTH has maintained it’s peg at 2$ even during the recent rough storms of the market. At the initial days before the crash, the TVL reached 6mn across all the chains.

We hope to make this mission to fight inflation a fruitful effort and seek support from the Curve community in this journey.

  • For
  • Against

0 voters

8 Likes
#2

This is not a sustainable protocol: your protocol increases debt of ARTH minters over time. And you want to compensate the minters with curve inflation. And your premise is: Venezuelan currency is hyperinflation so please vote for this gauge that increases debt of minters over time so ARTH minters can be subsidised.

I am not in favor of this gauge.

2 Likes
#3

Hey @bout3fiddy,

Thanks for your response. We don’t look to compensate borrowers with CRV inflation. Yes, we do use $MAHA incentives to make it easier for borrowers to get into the protocol and this usually works in a bull market. However we don’t intend to grow the protocol mainly through this way.

The question is basically, why would someone deposit collateral into the protocol?

Very simple.

Either to arbitrage whenever the currency trades above it’s peg. Since the system maintains a minimum collateral ratio of 110%, anytime there’s a price increase above 10% it’s a very easy arbitrage adding in more collateral into the protocol with 0% risk to the borrower.

This is also very much depenedent on the work that we do on the ground and within the defi ecosystem creating demand for the stablecoin

Or

to access the various yield opportunities that we’re currently working on. To cater to the defi community, we’re building mahalend.com, a lending protocol allowing users to leverage on LP tokens (with staking yields) such as curve’s 3pool.

We’re happy to take constructive feedback obviously. Our work in Venezuela has been going on for a while. Irrespective of CRV rewards.

2 Likes
#4

I voted in favor of this gauge with following reasons:

  1. The protocol creates a new category in the stable coin space - value coin.
  2. The difference from other inflation tracking stable coins is that it uses GMU (Global measurement unit) created specially for the protocol by econ. prof. Other protocols just track CPI performance and depreciate during bear market and deflation. $ARTH appreciate during bull market and the supply is reduced during bear market. $ARTH maintains value in all scenarios.
  3. The protocol just started recently business in Venezuela using a inhouse wallet app - real world use case.
  4. $ARTH maintained the peg during the crash as it is collateralized at 110%, not like other algo stable coins that no longer exists.
  5. The protocol uses Chainlink oracles now. The most decentralized oracle available. The oracle risk is minimized.
  6. Multiple audits were conducted as was mentioned before.
  7. The protocol will be backed by the native token of the chain that it is on, to avoid bridging risk.
  8. The protocol is in advanced stages of its own chain.

To summarize, with CRV incentives will increase the protocol’s liquidity which is really important for a stable coin to maintain its peg better, this will have a positive effect to CRV community too.

2 Likes
#5

You don’t understand, ARTH is overcollateralized and it’s peg appreciates at a fraction of underlying assets. Meaning CR would decrease as the valuecoin appreciates. It’s actually a really cool approach to stablecoins, good opportunity here to expand the ecosystem.

I support this proposal, the team over at maha are exceptionally talented and well connected. The value here is mutual. :+1:

1 Like