Welcome to ARTH guidebook. This page talks about ARTH as a flatcoin and how it works.
ARTH is a flatcoin that is designed to appreciate overtime against the US dollar while at the same time, it remains relatively stable.
ARTH is minted/burnt using decentralized smart contracts that use ETH as collateral to maintain its peg. The interest rate charged to mint ARTH using ETH is 0%, which makes it very cost-effective for borrowing/lending.
ARTH is fully collateralized with mechanisms that give it a backing of at least 110% in ETH.
0% Interest Fees on Borrowing
You take out a loan with ETH, and that’s it. No interests accrued at all.
Unlike other lending protocols like Compound or MakerDAO, there are no interest fees that the borrower has to pay when borrowing ARTH with ETH.
The way ARTH does this is by charging a one-time borrowing fee that adjusts algorithmically whenever a loan is opened. This makes ARTH the cheapest stablecoin to borrow against with ETH.
Minimal Collateralization Ratio
110% — that’s it!
Although we advise users to put a CR above 200%, the system allows users to borrow with a collateral ratio of up to 110%. That means you can only be liquidated if your CR reaches below 110%.
Earn Passive Yield (Staking)
As the stablecoin begins to grow, you will find many new opportunities to earn a passive yield from the protocol. You can find a list of all farming programs on https://arth.mahadao.com/#/farming
No Depreciation or Loss of Purchasing Power
One of the biggest differentiators of ARTH amongst other stablecoins is that it is designed to appreciate against the US dollar.
This means users who hold ARTH for longer periods of time should see an increase in their purchasing power when compared to other currencies.
These are the deployed contracts on the various networks.