ARTH Loans - Farming Ideas

It’s not a guide how to take a loan, but rather how to use lent ARTH for making some profits! You can read an introduction to ARTH Loans here. All these examples are provided with a loan of 1000 MAHA at 4$ for simple math (you can also take a loan against WMATIC, WETH and WBNB). Before we begin we should keep in mind to keep the CR (Collateral Ratio) at ~200% for extra safety - obviously it’s up to you at what levels you feel comfortable with, but that’s what I will use in this guide.

1000 MAHA (~4000$) will give us roughly ~1000 ARTH (2000$) with CR at ~200%*


*Please try to not fall below 110% CR as your loan will get liquidated. Furthermore when a recovery mode gets enabled then all loans should be at least at 150% CR to avoid liquidation. With our example we are safe to keep the loan even if MAHA price falls at around 2.20$ so we’ve got a wide safety net here, just in case. You can always either pay out the loan or add more collateral to keep it.


Now, let’s go straight up to some farming strategies!

1.a - Low Risk, Low Reward (BSC) - 10-40% APY

ARTH/BUSD

The safest way to earn some decent APY is to provide liquidity to stable coin pairs like ARTH/BUSD. With our 2000$ worth of ARTH we can split it in half so we have 1000$ worth of BUSD and 1000$ worth of ARTH and provide liquidity to ARTH/BUSD pair on Pancake Swap. Then we can stake our LP tokens on artcoin.com to farm even more MAHA rewards!

*As ARTH is pegged to GMU value the price will also appreciate against any USD pegged stable coins therefore we might experience a small Impermanent Loss, but this should be well covered with our farming rewards.

1.b - Medium Risk, Medium Reward (BSC) 40-140% APY

MAHA/ARTH

The other option we have is to provide liquidity for MAHA/ARTH pair. It certainly will give us higher APY, but we have to keep in mind that we can suffer IL (Impermanent Loss).

1.c - Low Risk, Low Reward (Polygon) - 10-20% APY

ARTH/USDC

We can use excatly the same method as we did on BSC with ARTH/BUSD pair, but this time we can provide liquidity for ARTH/USDC pair on QuickSwap. it is worth noting that usually farming on Polygon is less profitable than other chains as the fees on MATIC network are very low, therefore not generating such revenue to Liquidity Providers. However this pair is the safest one you can play on as USDC is deemed as one of the best and most reliable stable coin in crypto space and use stake it on arthcoin.com for MAHA rewards with your lent ARTH earning a steady flow of income

*As ARTH is pegged to GMU value the price will also appreciate against any USD pegged stable coins therefore we might experience a small Impermanent Loss, but this should be well covered with our farming rewards.

1.d - Medium Risk, Medium Reward (Polygon) - 40-140% APY

MAHA/ARTH

Going further with QuickSwap the other pair we can provide liquidity to is MAHA/ARTH and as before this will give us higher APY than stable coin pairs (remember about Impermanent Loss)

2 - High Risk, High Reward (BSC and Polygon)

Here comes to play a thing called Leveraged Farming! To use the most of our profit potential we can use our 2000$ worth of ARTH and buy more MAHA, WETH, WBNB or WMATIC with it, therefore we are leveraging our long position. Then you can use those tokens to provide more collateral, so you can lend out more ARTH! Of course this one is the most risky one as it involves a highly volatile assets which prices vary, so tread lightly on these grounds.

3 - Stability Pools

A completely different approach might be to put your ARTH into stability pools where you deposit your ARTH and earn fees from liquidation of other’s people loans. The best thing about stability pools is that they stay always in net positive position and you can opt out anytime! APY however can’t be easily predicted as it depends of number of loans getting liquidated, so more loans means more chances for stability pool providers to earn profit. More details on stability pools can be found here.


And that’s it! I hope you can use some of the strategies provided above! ARTH Loans is a great tool to boost your farming with 0% interest on a loan and no end date to pay out the loan as long as you keep the CR at >110%!


None of the above is a financial advice as the incentive for this thread is to show some of the farming strategies using ARTH Loans.

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