Protocol Controlled Value (PCV)

This section describes how the protocol will use the new liquidity features of Uniswap V3 to benefit ARTH holders.

Following the launch of Uniswap V3, the ARTH protocol will provide a liquidity pool that follows a curve, which concentrates the liquidity tightly around a price range.

By following a curve such as the one shown below, the protocol is able to provide the least slippage to trades that happen near the peg, while making it easier for the price to come back to the peg if it deviates too much.

(The concept of having liquidity concentrated at a particular price range is similar to how Curve - CRV pools work)

The liquidity concentration curve on Uniswap V3, focusing most of the liquidity around the target price

Users that deposit funds into the PCV, earn staking rewards in the form of ARTHX or MAHA.

Why Protocol controlled value (PCV)?

PCV allows for more efficient markets and a quicker return to the peg if the price of ARTH deviates.

(Experimental: Modifying the curve also can be used to provide liquidity that incentivizes the buy-side more than the sell-side)