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FAQs
Although the primary use case of
ARTH Loans is not generating revenue, instead, it is for users to take out seamless loans in a stable valuecoin, that is resistant to inflation. DeFi users, however, can generate revenue via:- Liquidating low CR% loans
- Depositing
ARTHvaluecoin to the Stability Pool to earn liquidation rewards. Stability Pools always give net positive rewards over time - Participate in various staking/LP pools with partner projects and earn rewards in
MAHAand partner tokens
- Metamask or any web3 compatible wallet installed.
- Collaterals in the form of the native blockchain token (
ETH).
To become a Stability Provider, you need
ARTH.ARTH can be borrowed by putting in collateral in the form of opening a loan position. Alternatively, you can also buy ARTH from the open market directly from a DEX.To make liquidations profitable, the borrower needs to keep away a gas fee compensation at the time of borrowing
ARTH. The current gas fee compensation is 5 ARTH (or roughly $10) on PoS chains and roughly 50 ARTH on the ETH chainA borrower can only take out a loan, by creating a debt position of not less than 50
ARTH on PoS chains and 250 ARTH on the ETH chain.Almost anybody can liquidate a loan position.
The requirement to liquidate a loan position is simply:
Current Collateralization Ratio < Minimum Collateralization Ratio Minimum Collateralization Ratio in Normal mode: 110%
Minimum Collateralization Ratio in Recovery mode: 150%
For every liquidation, the liquidator will have to pay gas fees. To make sure, liquidations are profitable, a significant gas fee is kept aside at the time of borrowing a loan.
Currently, the gas fee compensation is set at 5 ARTH or $10 acc to the current GMU of $2.
The CR in Recovery Mode is 150%. While the CR in normal mode is 110%.
Yes. While the redemption fee remains the same, the borrowing fee is changed to 0% to encourage borrowing in the system.
As a borrower, simply increasing your collateral ratio to >150% will protect you from any liquidations. Thus, you will have to either a) add more collateral or b) repay some debt
Yes. You will be in line for liquidations if the loans who have a collateral ratio below yours aren't enough to bring the protocol back out of recovery mode.
If you have any further questions, you'd like us to answer
- You can join our main telegram chat https://t.me/mahadao and ask the telegram community for help. Telegram is for quick and short queries.
Last modified 2mo ago