How to Mint ARTH?
This is a step-by-step beginner's tutorial on Minting ARTH
- ARTH: It is a type of flatcoin that maintains its value through collateral backing, primarily ETH in this case.
- Peg: The target price that ARTH aims to maintain.
- Ensure you have sufficient ETH or other accepted collateral in your wallet to start the minting process.
- Connect your digital wallet (where you store your ETH or other cryptocurrencies) to the ARTH protocol on the Base Network.
- Navigate to the ARTH decentralized application (DApp) on the Base Network.
- Choose the amount of ETH you want to deposit as collateral to mint ARTH. This deposit backs the ARTH you will mint, ensuring its stability.
- 1.Mint ARTH:
- Enter the amount of ARTH you wish to mint. It should be equivalent to the value of the deposited ETH.
- 2.Confirm the Transaction:
- Review the details of the transaction and confirm it in your wallet to initiate the minting process.
- Upon successful transaction verification, ARTH will be minted and added to your wallet.
- 4.Understanding Arbitrage Opportunities (Advanced):
- For those looking to engage in arbitrage:
- Mint ARTH when it is trading above its peg (target price).
- Sell the minted ARTH in the open market for a profit, betting that the price will revert back to its peg.
- This is typically done through a loan process where ARTH is minted using collateral.
By following this guide, even a beginner can successfully mint ARTH. It is advised to understand the dynamics of the ARTH market and the peg mechanism to effectively engage in arbitrage strategies. Remember, ARTH is always minted with a backing, ensuring its stability.