Alchemix (ALCX)
Alchemix is a decentralized finance (DeFi) application that enables the creation of yield-backed synthetic assets. By using collateral that generates yield, Alchemix provides self-repaying loans without the risk of liquidation. It was launched in February 2021. Vaults form the core of the Alchemix ecosystem, utilizing Yearn Finance to generate yield on assets like DAI, with support for ETH and other cryptocurrencies.
History of Alchemix
Alchemix was developed by a group of pseudonymous developers led by Scoopy Trooples. Initially, only Dai was accepted as collateral, used to mint synthetic alUSD tokens with a collateralization ratio minimum of 200%. Subsequently, a new vault was introduced to allow ETH deposits, minting alETH tokens with a minimum collateralization ratio of 400%.
| Ticker | ALCX |
| Category | Decentralized Finance (DeFi) |
| Website | https://alchemix.fi/ |
| @alchemixfi | |
| Contract Addresses | |
|---|---|
| ethereum | 0xdb...df Copied! |
| near-protocol | db...arCopied! |
Curve hack
On July 30, 2023, a major exploit affected several DeFi protocols on Curve Finance, resulting in the theft of over $24 million in cryptocurrencies. The vulnerability was traced to certain versions of Vyper, an Ethereum smart contract programming language, which allowed attackers to manipulate the reentrancy guard. Alchemix, JPEG’d, and Metronome DAO were among the affected protocols, with Alchemix losing approximately $13.6 million.
Overview of Alchemix
Alchemix Finance is a platform for future-yield-backed synthetic assets and operates as a community DAO. It advances users' yield farming through synthetic tokens that represent a claim on collateral within the protocol. Alchemix includes four main components: vaults, transmuter, token distribution, and Alchemix DAO. The platform allows advances on yield by minting synthetic versions of deposited DAI, working to maintain the peg of synthetic tokens to their base assets through Yearn Finance Network (YFN).
Services offered by Alchemix
Vaults
Vaults are essential for managing yield advance positions. Users deposit DAI, which is then used to earn yield in the Yearn yvDAI Vault. They can mint alUSD up to 50% of their DAI deposit, and as yield is harvested, their alUSD debt decreases.
Transmuter
The transmuter allows users to stake alUSD, converting it into the base asset over time. This conversion is linked to the yield generated, and staked alUSD acts like a bond, maturing into its base asset.
Farming
Alchemix offers yield farming, rewarding participants with ALCX tokens, which provide governance voting rights. The community manages a significant portion of the ALCX distribution, with a focus on incentivizing liquidity and community engagement.
AlchemixDAO
AlchemixDAO governs the platform, initially managed by developers with community signaling via the Snapshot app. ALCX ownership grants governance privileges, and the DAO aims to become fully decentralized.
ALCX Token
The ALCX token is an ERC-20 token used for governance and liquidity incentives within the Alchemix protocol. It can be staked to earn additional ALCX tokens, and with Alchemix V2, stakers receive a share of the protocol's generated yield.
Tokenomics
Alchemix pre-mined 478,612 ALCX tokens, with allocations for community use and bug bounties. The token distribution emphasizes rewarding those who contribute to the protocol, ensuring no single entity can control it.
Roadmap
- Official launch: In February 2021, alUSD vaults were launched.
- alETH vault: Introduced in June 2021, it faced an initial bug but was successfully redeployed.
- Alchemix V2: Released in December 2021, it established the DAO, added new asset vaults, and allowed stakers to capture revenue.
Alchemix fundraising
Alchemix raised $4.9 million in a funding round led by CMS, Alameda Research, and Immutable Capital. The funds were used for audits, recruitment, marketing, and community activities, allowing the founders to focus on production.
Partnerships
Olympus DAO x Alchemix
The partnership introduced OHM reserve bonds using alUSD-3crv pool LP tokens to maintain liquidity and stability for Alchemix assets.
Alchemix x Chainlink
Alchemix integrated Chainlink keepers to enhance its DeFi services, offering a seamless "set-and-forget" experience for users. Chainlink also launched price feeds for ALCX and alUSD to support their adoption as collateral in the DeFi ecosystem.