ARTHsupply always remains backed by collateral.
ARTHcorresponding to the remaining debt has to be burned from the Stability Pool’s balance to repay its debt. In exchange, the entire collateral (committed by the borrower) is transferred to the stability pool as rewards to stability providers.
ARTHtokens to the Stability Pool. This allows them to earn the collateral from the liquidated Trove. When a liquidation occurs, the liquidated debt is cancelled with the same amount of
ARTHin the Pool (which is burned as a result), and the liquidated Ether is proportionally distributed to depositors.
MAHAtokens continuously over time, in proportion to the size of their deposit. This is known as “Community Issuance”, and is handled by
MAHA, it is split between the depositor, and the front end through which the deposit was made. Upon registering as a front end, a front end chooses a “kickback rate”: this is the percentage of
MAHAearned by a tagged deposit, to allocate to the depositor. Thus, the total MAHA received by a depositor is the total
MAHAearned by their deposit, multiplied by
MAHAearned by the deposit.
GMU:USDprice is 100.
ARTHinto the pool. These users are also known as
stability pool, do so to earn liquidation rewards.
stability poolwill lose some/part of their
ARTHdeposits, as the protocol uses the stability pool to repay bad debt from liquidated loans.
110%), is returned to the Stability Pool. Stability Providers always remain in a safe and net positive position.
1 $ARTH = 2 USD)
$200,000gets liquidated at
Collateral liquidated = Loan taken out * CR% / Current Price of ETHie,
* 109%/3000) =
ARTHdeposit will go down by 10% (the
ARTHyou added into the Stability Pool is used to settle the debt into the system) of the liquidated debt
20,000 USD(10% of Total Debt)
80,000 USD(Initial Position - Your Debt Share) .
72.66 ETH), i.e.
7.26 ETH, which is currently worth
Current ETH price: $3000). Your net gain from the liquidation is