MahaDAO, the development team tasked with building a decentralized stablecoin platform, has shared the details of its upcoming "initial DEX offering" (IDO). It will be the first offering of this type for Polkadot-based DEX Polkastarter.
MahaDAO annouces the date of its IDO: Introducing MAHA
According to the press release shared with U.Today, the initial DEX offering of its MAHA governance token, will be hosted by Polkastarter on Dec. 17. MAHA utility token will be among the first three IDOs for this platform that pioneers the usage of cross-chain pools in decentralized fundraising.
MahaDAO also utilizes MAHA token as the protocol's governance asset. Steven Enamakel, founder of MahaDAO protocol, underlines the crucial importance of this offering for the whole stablecoin space:
MahaDAO is creating the way forward for new kinds of stablecoins to grow. Some of these stablecoins will solve real world problems like inflation in the fiat markets and the volatility in crypto.
During the initial DEX offering, enthusiasts of MahaDAO will be able to acquire MAHA tokens to participate in protocol governance referendums.
After the IDO, MahaDAO will list its assets on Uniswap and launch a liquidity farming program. In January 2020, its Collateralized Debt Position (CDP), designed to mint MahaDAO's valuecoin ARTH, will be introduced to the community.
Valuecoins, a new cryptocurrency concept for real-world use
The structure of the "valuecoin" is a killer feature of ARTH token. Unlike typical stablecoins that are subject to deflation reflected by the price dynamics of their underlying fiat currencies or commodities, ARTH token will see its value unchanged.
The new token will be backed by a basket of uncorrelated assets. The initial MahaDAO vault will include 80 percent of fiat currencies, 15 percent of Gold and 5 percent of Bitcoin (BTC). This proportion will be restructured in a decentralized manner to prevent the real-world value of ARTH stablecoin from inflation.
The "re-balancing" will be performed through buying and selling assets to the maintaining party. Thus, the manner of its operation will be opposite to that of MakerDAO's algorithmic stablecoin, DAI:
Whereas MakerDAO mints new DAI as the underlying assets appreciate, MahaDAO does the reverse, buying more of the collaterals, thereby increasing the total value of locked assets.
MahaDAO's team highlights that an unusual Polkastarter platform has been chosen due to its low-cost transactions and fast settlements.