Alchemix
Crypto Overview
Project Overview
Alchemix is a DeFi protocol that provides self-repaying loans through a system they call 'advance yield.' Users deposit yield-bearing tokens as collateral and can borrow up to 50% of their deposit value in synthetic tokens (alUSD or alETH). The unique feature is that the yield generated from the deposited collateral automatically pays off the loan over time.
Intended Utility
The ALCX token serves as a governance token for the Alchemix protocol, allowing holders to vote on protocol parameters and treasury management. It also provides staking rewards to incentivize protocol usage.
Actual Usage & Development
The protocol has demonstrated consistent usage with over $200M in Total Value Locked (TVL) as of 2024. The development team maintains regular updates and has implemented several security measures, including multiple audits.
Token Distribution & Governance
Initial token distribution allocated 15% to team/advisors with 2-year vesting, 10% for treasury, and 75% for community distribution through liquidity mining and other incentives. The vesting schedule and distribution method suggest a focus on long-term sustainability rather than short-term gains.
Revenue Model Analysis
The protocol generates revenue through yield farming strategies of deposited collateral and protocol fees. While it involves lending mechanics, it differs from traditional interest-based lending as it uses yield farming returns rather than direct interest payments between parties.
Crypto Impact
To assign a comfort level investing in Alchemix from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Alchemix.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.