I am thrilled to present Alchemix v2 to the world.
What is Alchemix v2 and why is it a game changer?
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What is Alchemix v2 and why is it a game changer?
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In Alchemix v1, we pioneered non-liquidatable, self-repaying loans for the soft-pegged alUSD and alETH products. Both alUSD and alETH were collateralized with only one token operating a yearn strategy.
v2 changes this
v2 changes this
v2 allows for any arbitrary number of collateral tokens and yield strategies to choose from. As token adapters are written and audited for v2, we can add an ever increasing selection of yield providers for your deposits on Alchemix.
You can, in effect, create your own yield aggregator from within Alchemix v2 by mixing and matching collateral types and strategies. The sum of your deposits across collaterals and strategies is the basis for how much you can borrow, greatly enhancing UX.
We are initially launching with @iearnfinance as our yield provider, but will soon have strategies that can hook into yield sources from @AaveAave and @compoundfinance and other protocols that share their token standards.
More strategies and collateral types will be added over time to Alchemix v2. It is our goal to have our yield sources capture the best yields in DeFi for our users.
Another major difference between v1 and v2 is that v1 was not built with composability - at all. In fact, we prohibited smart contracts from interacting with it, period. v2 was engineered and audited with composability in mind.
Alchemix v2 has enhanced security over v1 as well, with several layers of security to mitigate any potential damage from smart contract or economic attacks.
We welcome existing protocols to integrate self-repaying loans into their platform by hooking into Alchemix, along with any other perspective builders. We will be announcing a grant program soon to kickstart the alchemix builder community.
There are lots of possibilities for Alchemix integrations.
For example, would be really cool if someone made a self-renewing ens domain dapp on Alchemix
For example, would be really cool if someone made a self-renewing ens domain dapp on Alchemix
We brand ourselves as a self-repaying loan platform. More accurately, I'd say we are a regenerative financial product. Since your deposit is always working to repay your debt, it is effectively a negative interest rate for borrowing alUSD and alETH.
It turns borrowing on its head by having debt that just evaporates over time. This is powerful for individuals and personal finance, but has even greater potential for DAOs.
Project DAOs can borrow alUSD or alETH and use it to pay grants or other expenses, and have that debt be repaid automatically over time. It will extend runways for projects.
Moloch DAOs can have a regenerative budget, enabling the DAO to continue rewarding grants indefinitely.
Moloch DAOs can have a regenerative budget, enabling the DAO to continue rewarding grants indefinitely.
Our peg stability module, The Transmuter, is also getting 2 important upgrades. Initially, it is launching with a new-and-improved algorithm that more efficiently and fairly converts alUSD and alETH into a collateral asset.
As we migrate liquidity from our v1 transmuters, we will deploy this capital in a @fraxfinance inspired Algorithmic Market Operator (AMO) for Alchemix.
This AMO gives Alchemix fine grained control over the alUSD and alETH pegs. Any time the pools are overbalanced alUSD or alETH, the AMO can single side withdraw alUSD or alETH to restore them back to their peg.
The Curve LP will be staked in Convex. A portion of the rewards will be sold for boosted yield for v2 depositors!
The unsold CRV and CVX will be used for long-term liquidity provisioning in the Curve and Convex systems. This will help us to become more sustainable over time.
The unsold CRV and CVX will be used for long-term liquidity provisioning in the Curve and Convex systems. This will help us to become more sustainable over time.
I'm excited for what v2 can bring to DeFi. It is more powerful, expandable, composable, and incentive-aligned. We aim to become the top layer for users, and an indispensable plug in for builders.
The future is bright.
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The future is bright.
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