Alchemix

Halal Rating :
Uncomfortable
Last Price $12.4 Last updated:
Rank 713
1D Change 4.98 %
Market Cap $29.66m
Circulating supply 2,392,830
Maximum supply None

Crypto Overview

Categories
  • DeFi
  • Ethereum Ecosystem
  • Yield Farming
  • Governance
  • Lending & Borrowing
  • Olympus Pro Ecosystem
  • Near Protocol Ecosystem
  • DeFi 2.0
  • Protocol-Owned Liquidity
  • Spartan Group
  • eGirl Capital Portfolio

Overview

Alchemix is a DeFi protocol that offers self-repaying loans through a system they call 'advance yield.' The platform allows users to deposit yield-bearing assets as collateral and receive a loan in alUSD (their synthetic stablecoin) or alETH. The unique aspect is that the yield generated from the collateral automatically pays off the loan over time.

Purpose and Utility

The ALCX token serves as the protocol's governance token, allowing holders to vote on protocol parameters and receive a portion of protocol fees. It's primarily used for protocol governance and as an incentive mechanism for liquidity providers.

Business Model Analysis

The core business model revolves around lending and borrowing with an automated repayment mechanism through yield farming. The protocol generates revenue through fees charged on loans and yield strategies. The fundamental mechanism relies on interest-based lending, which is a key concern from an Islamic finance perspective.

Platform Development and Adoption

Alchemix has shown consistent development activity and maintains a strong technical team. The protocol has significant total value locked (TVL) and active user base in the DeFi ecosystem. Regular updates and improvements to the protocol demonstrate ongoing development commitment.

Token Distribution

The token distribution includes allocations to the team, treasury, and community. The project maintains reasonable vesting schedules for team tokens and demonstrates transparency in token economics.

Rating Justification

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