Alchemix Protocol permits for the creation of artificial tokens that symbolize the long run yield of a deposit. After spending over 6 months on ideation and growth, the Alchemix group believes that they’ve created a brand new DeFi primitive that may be freely utilized by different protocols and builders within the area.
— Alchemix (@AlchemixFi) February 27, 2021
What does it do?
Alchemix V1 will allow customers to deposit DAI stablecoins and mint “alUSD” as much as 50% of the deposited quantity of DAI. DAI deposited into the Alchemix sensible contracts are then routed to Yearn vaults the place they’ll begin incomes yield instantly. This yield can then begin to routinely pay down the debt incurred from minting DAI utilizing Alchemix.
The group describes 3 examples of how customers may handle their open mortgage with Alchemix beneath:
Possibility 1: depart their deposit to repeatedly earn yield, permitting them to periodically draw down their mortgage collateral.
Possibility 2: repay the mortgage early utilizing alUSD or DAI, permitting them to withdraw their collateral.
Possibility 3: liquidate their mortgage utilizing a part of their collateral to repay the mortgage and permit them to withdraw no matter is remaining.
alUSD is a traditional ERC-20 token and might be tradeable. As soon as customers have minted their alUSD additionally they have the choice of depositing alUSD again into the “transmuter” which may convert alUSD again into DAI and even different stablecoins. This course of can take a various period of time, relying on varied elements throughout the Alchemix ecosystem.
The group additionally plans to construct out different purposes throughout the Alchemix ecosystem that may make use of the brand new alUSD. Earlier than new purposes for alUSD are constructed out, early customers can first take part in Alchmix’s liquidity mining program. The incentivized token pairs are listed within the tweet beneath.
The allocation for every farming pool is as follows:
ALCX/ETH SLP tokens: 45%
alUSD-3CRV LP tokens: 45%
— Alchemix (@AlchemixFi) February 26, 2021
Sustain with Alchemix by following them on Twitter.
Enterprise Improvement and Operations at TrustToken – TUSD. Jack is a startup generalist and DeFi fanatic. Keep related with him by following @HHJackSun on Twitter.