Crypto collateralization platform MahaDAO has unveiled details of a staking program, which will be delivered with the aid of Ferrum Network. The program will allow the community to stake the project’s MAHA governance token, which was recently made available to the public via Polkastarter DEX.
The Initial Dex Offering (IDO) sold out in under three minutes on December 17, in one of the first token sales to be conducted on Polkastarter. MahaDAO will now commence with a staking program that will provide an APY of almost 40%. To qualify for the maximum available APY, users are required to stake tokens for 90 days.
Staking to Precede Protocol Launch
MahaDAO’s protocol is on course to launch in January, whereupon users will be able to open and manage collateralized debt positions (CDPs). Until then, the staking program gives token holders somewhere to park their assets and begin earning yield. Uniswap liquidity mining is also in the works, but in the interim, MahaDAO’s staking program will temporarily remove a tranche of MAHA tokens from the market, increasing scarcity.
The initial staking program MahaDAO is launched has been delivered with the support of Ferrum Network, which specializes in staking-as-a-service. A total of 200,000 MAHA can be staked by the community for the 90-day program, by which time MahaDAO’s platform should be live.
Bringing Value to Decentralized Finance
MahaDAO’s ARTH token, which is minted in the same manner as a stablecoin like DAI, has been described as the world’s first non-depreciating currency. This means that its purchasing power should remain constant over time, even as inflation causes the price of real-world goods to go up. For example, a coffee bought with 10 ARTH in 2020 should be purchasable in 2025 for 10 ARTH. This gives users confidence that their holdings are not going to lose their purchasing power, unlike fiat currencies including stablecoins.
Within the decentralized finance space, however, ARTH will provide a more immediate use case, allowing assets to be collateralized in return for minting valuecoins. These can be used for traditional DeFi applications like lending, trading, and yield farming.
Pegged to a Global Measurement Unit comprising an uncorrelated basket of assets (various weightings of fiat, gold, and BTC), ARTH is designed to have intrinsic value, belying the claims of those who accuse cryptocurrencies of being “backed by nothing.”
While ARTH will provide the everyday value within the MahaDAO ecosystem, MAHA will provide governance rights. MahaDAO is riding high following its successful token sale, with a community that is growing fast. The MAHA staking program will maintain the momentum while building anticipation as the launch of the MahaDAO protocol looms.
This post was originally published on www.newsbtc.com