Alchemix is a new DeFi protocol built for self-repaying, non-liquidating loans. It enables users to get access to liquidity against crypto without putting their assets at risk of liquidation through an innovative mechanism in which the interest generated from user deposits automatically repays the loan. This innovative method augments the traditional lending model, permitting high-yield differentiated users to allocate a portion of their debt to spend while earning interest on the savings​.

Token Overview

Alchemix platform has an ERC-20 governance token, ALCX, as its primary token. ALCX allows holders to vote on management decisions through the platform's Decentralized Autonomous Organization (DAO). It also acts as an incentive for liquidity providers and contributors, with emissions tapering off over time. Originally, there was no presale for ALCX nor any external funding, which naturally ensured a total decentralization of the ecosystem​

Tokenomics

Alchemix has a very interesting tokenomics that is altogether different with a total of ALCX tokens originally distributed to liquidity providers, developers, and the community. All ALCX emissions are intentionally lessened over time, so inflation decreases. Around 80% of tokens will be used for liquidity provision while 15% is for DAO treasury. This model of distribution encourages long tail involvement and equitable governance​.

ICO Timeline

Alchemix also did not use a standard ICO (initial coin offering) Rather, the platform was released in an organic manner without external funding and presale events. This enabled the project to escape control from early investors and keep distributions and governance of the token fair and decentralized​.

Technical Overview

The main technology behind Alchemix is self-repaying loans. Users pay collateral also in form of ETH, DAI, USDC etc, and then use it to create synthetic assets called alAssets. You can borrow these assets for up to 50% of the collateral’s value. This debt also gets repaid automatically by the earned yield on these assets, which means no manual payments are necessary​.

Meet the Team

Alchemix is a product of the DeFi space, built by a team of high experience professionals with a strong interest in decentralization with community governance. Although the particulars of individual team members are not always released, the project is overseen by a DAO structure that means governance and decision-making is put in the hands of its community rather than any one leader or group​ .

Roadmap

The alchemix roadmap focuses on expanding their services and enhancing the capability of the platform. Upcoming solutions entail additional collateral types, upgrades to the user interface, and expanding across additional blockchains for further accessibility. The platform is still maturing with future updates that will provide additional decentralized finance (DeFi) functionality in the form of new vaults and improved opportunities for yield generation​.