Automated Liquidity

This section talks about how the protocol automates growing liquidity for the ecosystem.

Automated Liquidity is a feature of the MahaDAO ecosystem that automates the growth of liquidity from the fees earned from the ecosystem.

Whenever the ecosystem earns fees from the various sources of revenue, a portion of it goes towards growing liquidity. A highly liquid market allows people to enter/exit the ecosystem easily.

GitHub - MahaDAO/liquidity-contracts: Contracts that automatically add liquidity to the various poolsGitHub

Source code for the liquidity automation contracts

How does it work?

A share of the revenue from the protocol first gets collected at a common contract called as the MasterRouter contract, which is deployed at 0x8be9cbbdfeeaf1dcacfb608105ec27384b6ff628.

Revenue can be in the form ETH, ARTH, MAHA or any ERC20 token.

From there, the MasterRouter contract decides how much liquidity to add to the various pools. Currently, the logic implemented is as follows.

Asset	Liquidity Pool	How does it add to LP?
ARTH	Curve ARTH/USDC - Link	All the ARTH captured is directly added into Curve.
ETH or WETH	MAHA/WETH 1% Uniswap - Link	Half of the WETH is first swapped to MAHA and then the rest is added into the Uniswap V3 position (as much as possible).