AIP16: Create a long-term pool for ARTH Genesis whales

The motivation for this to keep the ARTH community members in peace but also not cause too much negative sell pressure on the ARTHX token.

The proposal is to create a new pool that accepts the ARTH token but locks it up indefinitely for users that deposit before the rebase happens. (This pool can be considered as a debt repayment pool with no guarantee that the debt will be repaid).

This pool will collect 25% of all protocol fees until all the debt is paid up. These are measures taken similar to what ALPHA protocol and others have done in order to pay up debt that have been caused due to a hack or something similar along those lines.

  • The ARTH miners get refunded back for their money. There is no definite timeline, it could be 1 year, 10 years, or possibly never happen.

  • Stop the swap of ARTH to ARTHX. Allow ARTH v1 holders to enter into the debt pool.

  • Allow ARTHX to be swapped back to ARTH and enter into this debt pool.

  • Current ARTH holders get ARTH at $1 (but later) and risk no re-bases or ARTHX dump.

  • The people who buy ARTHX during Genesis don’t have to fear a major ARTHX dump, because the large amount of Arth from the v1 whales won’t force a temporary flow into ARTHX.

  • It also prevents a large exchange of ARTH to Collateral right after Genesis, since a large amount of old ARTH is blocked in the pool and will only be released later and possibly gradually as the amount of mined ARTH increases.

Protocols such as Yearn finance for example generate up to 20mn$ in fees per month that goes to the token holders. If the protocol does succeed in the long term, then this debt will easily get paid off.

If approved, we can put up for a vote on the 27th and go live on the 28th, pushing the end of the Genesis by 1 day.

  • Approve this Proposal
  • Reject this Proposal

0 voters

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Interesting initiative and if the intention is to reduce the initial sell pressure to arthx ,also not penalising those 7 odd MN of arth already converted , by removing this option from them.

I propose an addition option to be enabled before opening of arthx trading pairs , the option to swap back to arth but transfered to this long term pool.

Benefits .

  1. Is kind of unfair for those who already converted the arthx but interested in this option.
  2. People who pledge collateral now gain 30% Discount. Which translates to a guaranteed return, there by further increasing the collateral raised, if pitched proper ( promote your targeted TLV of 1bn)

So it’s a win-win-win situation

1 Like

Great Points! Agreed for sure there should be a way to go back to ARTH.

  1. Reverse the arth v1 contributed.

  2. Don’t allow arth v1 to swap to arthx, and give them 25% of platform fees over time until whole.

This is how it should have been done in the first place. More would have contributed to genesis.

This protects V2 from debt.

It stops an initial dump of the arthx token, which in consequence will keep APYs high and interesting to potential investors, and bring more money into the protocol.

IF YOU CAUSE ARTHX TO DUMP AT LAUNCH from V1 debt you will destroy the apys and there will be no reason to mint arth for investors.

There is no immediate use case for arth other than yield farming at the start.

So you must protect the yield (the price of arthx) so people stay interested in the protocol UNTIL there is another use case.

Or the protocol dies before it even starts.

After a long discussion in the Maha Telegram group I came up with the following idea to prevent the upcoming ArthX dump.

Why ArthX dump?
People will swap Arth to ArthX the last minute to not get hit by the Rebase. The little Arth whats left, will get rebased anyway to about 800k mcap. There wont be any liquidity to sell ArthX into, so price will plummit.

How to prevent initial ArthX dump?
Make Arth to ArthX swaps vested over 6 months. People wont be able to sell on a illiquid market, hence no hard dump.

Why should I get ArthX then anymore?
The vested ArthX have an automated farming pool with a decent APY (25%?).
Maybe replace the upcoming ArthX-only pool with the vested one, just increase the APY.

Why 6 months?
Not too long to get scared, but also not too short - 6 months should be enough to build up enough liquidity with Arth-ArthX-LP pools etc. to handle the sell pressure.

When unlock?
Make it daily over 5 months, starting on month 2. This gives 1 month time to build up LPs to handle unlock-sell-pressure.

Thank you for reading. Love you all.

3 Likes

“The game of Whales” season 2 is just started, season 1 was with the arthv1
The MahaDao leader is an computer scientist, economist and mathematician and he prepared the arth v2 launch for months…but who cares about that, let’s find a solution to save our bags, right??

Curiosity: how many of these 25m v1 arth vas bought with money and how much was farmed during the expansion days??? I ask for a friend

Now we should use 25-50% of the fee to pay the debt instead to use them to pay liquidity provider for arthv2 or for the marketing…etc

P.s arth1 failed we all know that but instead of 0 the team give the possibility to swap to arthx and move on

You really need to consider the fact that a lot of us here got rekt because arth 1 failed twice. Some believe in MAHA team and others believe in ARTH. Big believers means big bags, and we all holded for so long not to lose it all. So there have to be a way to protect investors and believers.

1 Like

In a sense liquidity provider bought 100ARTHX for 1$.
ARTH holders bought 100 ARTHX for 0.2$ value. They are in 5x profit compared to the liquidity provider. Why wouldnt sell their ARTHX? If you give people the opportunity to make 5x profit they will take it …

Hey Schlonki!

It’s really awesome to see you here :smiley:

Great suggestion about the vesting bit. However, I believe that vesting can actually create negative long-term price impact. Because if ARTHX goes above 0.01$ then those who are vested will actually cause a negative price impact to the ARTHX price. Progress of the protocol should not be hindered at the cost of profit seekers.

Take this from a guy who has seen many projects get screwed by private sale investors.

So a better suggestion to:

  • Have protocol fees cover up the debt.
  • But also Prevent ARTH swap to ARTHX

Protocols such as yearn finance for example generate more than 20mn$ in fees a month after being in existence for more than 2 years. We should be able to easily clear off this debt if the protocol succeeds long term.

Awesome suggestion. Look forward in hearing from you.

1 Like

Hi Steven, for sure we have to reduce the dilution of ARTHX somehow, imo.

1 Like

‘ARTH holders bought 100 ARTHX for $0.2 value’ → this statement is not entirely true. There might be some like that. There is mix and match here. There are a lot who bought ARTH at $1 and some at >$1 too. Saying all this, I like the ideas that are being discussed to stabilize the whole ARTHV2 and come out with win-win situation for everyone.

Personally I like Digits idea the most. This is how it should have been to start with.

I agree this is how it should have been done in the first place, which is not pretty because it implies forced actions on old supporters, so I think at this point, we are basically trying to reach a mid-point agreement where all parties involved can be satisfied up to a certain level.

The accepted risks under this proposal are:

  • For v1 holders: Locked funds until enough collateral is there or risk of never getting it back if v2 fails.
  • For genesis participants: Risk of ARTHX dump from those who want to exit on day 1, hopefully short-term.

Based on my proposal for an Arth Genesis pool, a vivid discussion has evolved. I have been following this on Telegram for the last few days and think that the following proposal could find broad support.

I’ll call it “AIP17” so that people can refer to it:

AIP17 would propose the following:

1) Release of all Arth which are collateralized at the Genesis end.

2) Establish a locked v1 arth pool. (Arth are released continuously, through collected fees (As AIP16 describes it.) or through other sources.)

  • All Arth, which are not collateralized after Genesis and have not been exchanged into Arthx, are automatically added to this Arth pool. There is no rebase.
  • This prevents a fear game of rebase.
  • The whales (and everyone else) do not have to flee into Arthx to avoid a rebase.
  • This also protects the Arth from all Arth holders who haven’t noticed Genesis yet.
  • Arth v1 holders will gradually get their investment.
  • Arth holders who have already exchanged Arth for Arthx should have the possibility to exchange Arthx back for Arth.

3) Set up a locked Arthx pool with all Arthx coming from Arth. (25% API, 5% Arthx release right after Genesis, Rest release starts after one month. Daily, over 5 months)

  • This protects the collateral contributors who bought Arthx from a dump into a bottomless hole.
  • The price stays more stable and there are some months time to make Arthx attractive for buyers.
  • Arth v1 holders will gradually get their investment through Arthx.

Everyone should have the possibility to decide how much % of his Arth he wants to give into the Arthx or the Arth pool. (diversification)