What is Alchemix (ALCX) | What is Alchemix token | What is ALCX token

About Alchemix

Alchemix is a DeFi protocol that allows for the creation of synthetic tokens that represent the future yield of a deposit. It enables users to retrieve near instant tokenized value against temporary* deposits of stablecoins. A magic money potion if you will, however one that is crafted in Defi with perhaps a sprinkling of ancient wisdom(!). The protocol presents a powerful new DeFi primitive offering myriad applications for users and an exciting new tool for other developers.

How it Works:

Version one of the Alchemix protocol will be launched with a synthetic derivative, “alUSD,” which will be mintable using DAI (other stablecoins to follow). To mint alUSD, users deposit DAI into the Alchemist smart contract via our hosted UI and can then mint alUSD, up to 50% the deposited amount of DAI at a 1:1 ratio. The deposited DAI is deployed to yearn vaults to earn yield.

Alchemix is full of possibilities… your funds aren’t imprisoned in some medieval way.

Once deposited, funds are committed to earning yield which will eventually, automatically pay back user debt. There are however several ways in which a user can choose to manage their loan:

Option 1: leave their deposit to continually earn yield, allowing them to periodically draw down their loan collateral

Option 2: repay the loan early using alUSD or DAI, allowing them to withdraw their collateral

Option 3: liquidate their loan using part of their collateral to repay the loan and allow them to withdraw whatever is remaining.

What can you do with alUSD?

Like many other ERC20 tokens on Ethereum, alUSD is tradeable and experiences price fluctuations. This opens up an array of opportunities for the savvy investor that are beyond the scope of this article. We’ve speculated about some use cases at the bottom of this article for your entertainment.

Enter the Transmuter

Users can send their alUSD to the transmuter which will queue it for conversion back to DAI and other stablecoins. At this point you may be mistaken for believing that the genius of Alchemix has indeed conjured a recipe for creating free money. The Transmutation process however does take time, relying on other ecosystem dynamics to determine its speed.

A high-level overview of the Alchemix Protocol.

How alUSD is pegged to $1:

There are several governance-minimised pegging mechanisms built into the protocol itself:

• Transmutation from alUSD to DAI:
• Yearn vault yield is periodically collected and deposited into the transmutation pool. Each time yield is sent to the transmutation pool, it is allocated proportionally to all the alUSD staked in it. When users claim their DAI in the transmutation pool, an equal amount of alUSD will be burned from their staking deposit.
• Staking (alUSD-3CRV) incentive:
• Staking rewards are earned in the form of ALCX DAO tokens by providing liquidity in alUSD/DAI/USDC/USDT in curve.fi (via the permissionless crv.finance dapp), and then staked in the Alchemix protocol. This adds deep liquidity for alUSD, enabling frictionless transfer of value, resulting in minimal price impact on the alUSD token.
• Early settlement of user deposits:
• Debt can be repaid at any time with DAI and/or alUSD. For example, Bob has 1000 DAI of debt in the system, and he sees that alUSD is cheap at 0.9 DAI. Bob can buy 1000 alUSD off the market at a discount and settle his debt with alUSD, which the protocol always treats as equal value to DAI. Doing so would save Bob money and his act of buying alUSD would help to restore it to its peg. The opposite is also true. If alUSD is over the peg, Bob could sell his alUSD for DAI, allowing him to settle his debt at a discount.
• Ecosystem Growth:
• The Alchemix team plans to release additional dApps that will utilize alUSD and other future al-tokens for their usage. With more dApps utilising these tokens, greater demand and upward price pressure will be projected toward them. This will reduce selling pressure on the al-tokens, and make all of the other pegging mechanisms more effective as a result.

How and Where to Buy Alchemix (ALCX) – An Easy Step by Step Guide

You will have to first buy one of the major cryptocurrencies, usually either Bitcoin (BTC), Ethereum (ETH), Tether (USDT)… We will use Binance here as it is one of the largest crypto exchanges that accept fiat deposits.

Binance is a popular cryptocurrency exchange which was started in China but then moved their headquarters to the crypto-friendly Island of Malta in the EU. Binance is popular for its crypto to crypto exchange services. Binance exploded onto the scene in the mania of 2017 and has since gone on to become the top crypto exchange in the world.

Once you finished the KYC process. You will be asked to add a payment method. Here you can either choose to provide a credit/debit card or use a bank transfer. You will be charged higher fees when using cards but you will also make an instant purchase. While a bank transfer will be cheaper but slower, depending on the country of your residence.

Step by Step Guide ☞ What is Binance | How to Create an account on Binance (Updated 2021)

Next step - Transfer your cryptos to an Altcoin Exchange

Since ALCX is an altcoin we need to transfer our coins to an exchange that … can be traded. Below is a list of exchanges that offers to trade ALCX in various market pairs, head to their websites and register for an account.

Once finished you will then need to make a BTC/ETH/USDT deposit to the exchange from Binance depending on the available market pairs. After the deposit is confirmed you may then purchase SHIB from the exchange view.

Exchange: Sushiswap and 1inch Exchange

Apart from the exchange(s) above, there are a few popular crypto exchanges where they have decent daily trading volumes and a huge user base. This will ensure you will be able to sell your coins at any time and the fees will usually be lower. It is suggested that you also register on these exchanges since once ALCX gets listed there it will attract a large amount of trading volumes from the users there, that means you will be having some great trading opportunities!

Top exchanges for token-coin trading. Follow instructions and make unlimited money

☞ Binance ☞ Bittrex ☞ Poloniex ☞ Bitfinex ☞ Huobi ☞ MXC ☞ ProBIT ☞ Gate.io ☞ Coinbase

Looking for more information…

☞ Website ☞ Explorer ☞ Explorer 2 ☞ Source Code ☞ Social Channel ☞ Social Channel 2 ☞ Message Board ☞ Coinmarketcap

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