ARTH Compounding Strategy

Hey there, I’m the creator of MAHA (mahadao.com) & ARTH (arthcoin.com); an algo coin that is an improvement on top of Basis Cash & other elastic stablecoin protocols.

Brief of the protocol

The ARTH algocoin has two phases, an expansion phase and a contraction phase, and three pools; An ARTH pool, ARTH-DAI LP pool and a MAHA pool.

Users earn rewards based on which pool they’ve staked in and what phase the protocol is in currently.

During the expansion phase, users will receive ARTH, which can be compounded back into the protocol.

During the contraction phase, users will receive MAHA, which can be sold off for ARTH and be compounded back into the protocol again.

There is a 5 day withdrawal (or “unbonding”) period for any user that wants to withdraw their ARTH or MAHA from the protocol.

The Strategy

A pickle jar that auto-compounds ARTH & MAHA earned by users. The jar will work for 30 days and allow users to harvest their rewards after the 30 day period. Harvesting happens 5 days after unbonding period has passed, so on day 35 users will be able to withdraw their funds + rewards from the jar.

During the 30 day period, the jar will re-deposit any ARTH earned from the protocol back into the protocol and sell off any MAHA rewards earned from the protocol for ARTH and redeposit that back into the protocol again.

Users will start the jar by depositing ARTH into the pickle jar and the compounding starts from there. At the end of the strategy, when the withdrawal start to happen, users will receive:

  • More ARTH
  • A little bit of leftover MAHA rewards

We can also give some more thought on how to make the pickle jar reusable as after 35 days, the jar will be stop the compounding and encourage users to withdraw (maybe we can give a 5 day window for withdrawals? and then restart the jar again).

A similar jar can be created for the ARTH-DAI pool as well.

The MahaDAO Community

The MahaDAO community is active with whales, farmers and devs who have been looking forward for a compounding tool for all their ARTH rewards. Many have been looking for ways to save on gas fees but utilize the high APYs that the ARTH protocol gives out. I strongly believe that many farmers in our community would find great utility in having such a strategy for their ARTH tokens.

On the side, we’d be happy to do retweets, ANNs around the pickle jar and have a link to this jar mentioned on our site as well. :slight_smile:

1 Like

So compounding is only monthly?