.@AlchemixFi is a Defi protocol tokenizing future yield.
The result is non-liquidating + self-repaying loans 🤯
V2 promises to expand this magic 🪄
🧵 on how this is possible and where it is headed
The result is non-liquidating + self-repaying loans 🤯
V2 promises to expand this magic 🪄
🧵 on how this is possible and where it is headed
In ALCX V1 users deposit DAI or ETH into their respective ALCX vault and receive alDAI or alETH
(<= 50% LTV).
'alTOKENS' are synthetic derivative tokens representing future yield of the collateral & pegged 1:1 with the collateral.
The future yield comes from Yearn vaults.
(<= 50% LTV).
'alTOKENS' are synthetic derivative tokens representing future yield of the collateral & pegged 1:1 with the collateral.
The future yield comes from Yearn vaults.
The DAI used as collateral in Alxchemix is sent to Yearn to begin accruing yield. The yield is used to pay back the loan (self-repaying).
ALCX is responsible for roughly ~75% of Yearn's DAI vault.
A recent @MessariCrypto piece covered the contributions: messari.io
ALCX is responsible for roughly ~75% of Yearn's DAI vault.
A recent @MessariCrypto piece covered the contributions: messari.io
The 1:1 peg is maintained with a few mechanisms - most importantly the Transmuter.
The Transmuter takes yield from the Yearn vaults and allocates it proportionally to its staked alUSD.
When a user claims their DAI, an equal amount of alUSD is burned.
The Transmuter takes yield from the Yearn vaults and allocates it proportionally to its staked alUSD.
When a user claims their DAI, an equal amount of alUSD is burned.
The Transmuter is only necessary in the rare case alUSD's peg is off. Most of the time, the funds from the Transmuter are continually reinvested to provide a sustainable boosted yield.
alUSD owners can swap alUSD on Curve and then trade freely.
alUSD owners can swap alUSD on Curve and then trade freely.
Recently, ALCX V2 was announced. V2 intends to be an overhaul of the ALCX platform:
- Updated UIUX
- Multiple yield strategies
- Decentralization
- DAO updates
- Composability + new use-cases
- Multiple collateral types + multi-chain expansion
- Updated UIUX
- Multiple yield strategies
- Decentralization
- DAO updates
- Composability + new use-cases
- Multiple collateral types + multi-chain expansion
New Yield Strategies
In V1, all collateral is sent to either Yearn or Saddle’s vaults.
In V2, ALCX will unlock customizable yield-generating strategies by connecting with various vaults + contracts across Defi.
ALCX will offer preset strategies to optimize risk + reward.
In V1, all collateral is sent to either Yearn or Saddle’s vaults.
In V2, ALCX will unlock customizable yield-generating strategies by connecting with various vaults + contracts across Defi.
ALCX will offer preset strategies to optimize risk + reward.
Decentralize
Currently, ALCX voters only have access to non-binding votes. V2 enables direct on-chain governance by the community.
The team is also offering a grant and community contribution program.
Currently, ALCX voters only have access to non-binding votes. V2 enables direct on-chain governance by the community.
The team is also offering a grant and community contribution program.
ALCX DAO Updates
- Stakers will begin earning a portion of protocol revenue.
- An insurance module similar to Aave's Safety Module.
- A novel rewards program that rewards time and participation in the DAO.
- Stakers will begin earning a portion of protocol revenue.
- An insurance module similar to Aave's Safety Module.
- A novel rewards program that rewards time and participation in the DAO.
Composability + Use Cases
ALCXs novel model opens the door for a plethora of use cases
Current ideas include DAOs utilizing ALCX loans, real-world adoption utilizing Streampay, and collateralized debt applications allowing users to lend out their spare credit for more rewards
ALCXs novel model opens the door for a plethora of use cases
Current ideas include DAOs utilizing ALCX loans, real-world adoption utilizing Streampay, and collateralized debt applications allowing users to lend out their spare credit for more rewards
New Collateral Types + Multi-Chain Expansion
The ALCX team has confirmed the roll-out of additional stables + alBTC with V2. Additional collaterals and synthetics are also in development, but not disclosed at this time.
Also, ALCX will be expanding to EVM compatible chains.
The ALCX team has confirmed the roll-out of additional stables + alBTC with V2. Additional collaterals and synthetics are also in development, but not disclosed at this time.
Also, ALCX will be expanding to EVM compatible chains.
Exciting times ahead for @AlchemixFi @scupytrooples and the Defi community!
Loading suggestions...