1. Project Introduction
Alchemix is a DeFi protocol that aims to provide users with a new financial experience based on collateralized assets. Through Alchemix, users can prepay future asset returns without paying interest or taking on liquidation risks, thereby greatly improving the efficiency of capital utilization. The project focuses on decentralized governance, advocates transparent and fair financial service concepts, and injects new vitality into the DeFi ecosystem.
The core feature of Alchemix is its unique self-repaying loan mechanism. After users pledge their assets to the smart contract, they can immediately borrow the corresponding alAssets (such as alUSD). Over time, the income generated by the pledged assets will be automatically used to repay the loan. Users do not need to intervene manually, and the loan will not be liquidated due to market fluctuations, providing users with great convenience and security.
Alchemix supports multiple collateral types and provides diversified income strategies. Users can choose the collateral scheme that best suits their asset management needs based on their personal needs, thereby achieving flexible capital allocation.
At the same time, its Transmuter function allows users to deposit the generated alAssets into the converter and gradually convert them into their corresponding underlying assets at a ratio of 1:1. This function not only stabilizes the price of alAssets, but also provides users with a variety of asset management options.
Alchemix is managed by a decentralized autonomous organization, and ALCX token holders can participate in protocol governance decisions through voting. This governance mechanism ensures the transparency of the protocol and the deep participation of the community, while also laying the foundation for the sustainable development of the platform.
In general, Alchemix has become an important pioneer in the DeFi field with its innovative mechanisms and user-friendly functional design. Its unique self-repaying loan model, diversified mortgage strategy and decentralized governance structure provide users with efficient, flexible and secure asset management tools.
2. Latest News and Progress
According to the official X news release, ALCX has updated the latest optimized annual profit, and the value-added of the wstETH OP vault will also last for 6 months, with 50% of the deposit as collateral for borrowing. Users can earn full interest and there is no liquidation risk.
Official X information released, ALCX/ETH pool voters generated $875,000 in incentives. The official incentive method used is a typical 80/20 Balancer pool fee sharing method.
Of this, 50% is used for liquidity providers, 12.5% is used for DAO organizations, and 37.5% is used for veBAL lockers.
Meanwhile, the ALCX/ETH “core pool” status shifts this split to: 50% liquidity providers, 12.5% Balancer DAO, and 37.5% voting incentives for veBAL/vlAura holders who support the core pool.
Through adjustments to the core pool, ALCX has created $875,000 in rewards for voters who support the pool. Thanks to the voting multiplier, this number expands to more than $100,000 in rewards. Overall, this is good news for the liquidity and governance of the platform.
3. Large Amount Unlocking and Allocation
ALCX tokens were issued with no pre-sale or external funding, no hard cap, but with a planned token minting schedule. Issuance is the rate at which new ALCX tokens are minted. Token issuance is allocated to liquidity providers, treasury, and protocol contributors.
ALCX issuance (slow minting) gradually reduces issuance over three years and continues to maintain a long tail of fixed weekly issuance. Alchemix is now in the long tail, minting 2,200 ALCX per week indefinitely.
Of the initial issuance of the project tokens, 15% is pre-mined by Alchemix DAO, 5% is for bug bounty, and 80% of the tokens can be obtained through LP staking.
Founders, developers and community contributors have access to an exclusive staking pool that will receive 20% of the current ALCX supply. This is equivalent to 16% of the supply in 3 years.
Stakers and liquidity providers are eligible to receive 80% of ALCX block rewards, which will be equivalent to 64% of the supply after three years. Currently, a portion of these issuances are sent to the reserve pool.
The initial supply of tokens was 478,612 $ALCX, minted as a pre-mine. Alchemix calculates that after three years there will be 2,393,060 $ALCX in circulation, distributed as: 15% to the DAO treasury, 5% for the bug bounty program. The staking pool distributed approximately 22,344 $ALCX tokens in the first week, decreasing by 130 $ALCX per week for the first 3 years. The calculations are approximate, as $ALCX rewards are calculated per block, and network conditions, while negligible, may slightly affect the timeline.
Alchemix is over three years old, which means a fixed issuance of $2,200 of ALCX per week. This will result in a gradually decreasing inflation rate over time.
The above two figures mainly reflect the ALCX supply, incentives and supply situation in the time dimension.
4. On-chain situation
The following figure shows the TVP, market value, and token price of the ALCX token on DefiLlama. In general, after the TVL plummeted in 2022, the market value and token price also fell into a slump, and there has been basically no improvement so far.
The indicators in the figure below mainly reflect the trading volume, liquidity and full circulation market value of ALCX. It can be seen from the figure that the overall trading volume has not been too sluggish, and the liquidity is at a historical low, but overall it has been recovering recently.
The following figure mainly captures the inflow of US dollars and the governance tendency of the community, and includes the expectations of developers. In general, after the sharp drop in TVL, US dollars basically no longer flow into ALCX tokens. But relatively speaking, the community’s attitude is relatively positive, and developers do not engage in excessive arbitrage behavior. Overall, the community atmosphere is very good.
The figure below shows the stablecoin ALUSD issued by the Alchemix project. In general, it can be seen that the main supporting assets are ETH and OP. Referring to the supply, there is no outstanding performance overall, and it is difficult to distinguish the core competitiveness.
The figure below shows the revenue of the ALCX platform this year. The data is provided by the official statistics platform.
The figure below also shows the Holding data related to ALCX.
5. Off-chain situation
The above picture shows the overall fluctuations in the past year. In general, with the recent hype of the concept of decentralized finance, ALCX as an old platform has gradually attracted attention.
But if we look at the long-term trend, even if the current ALCX has risen, it is still far from the initial issue price, which is not conducive to boosting market confidence.
The above figure mainly shows the distribution of ALCX token holdings. It can be seen that a very small number of whales hold more than 70% of ALCX token assets, which means that the price may be easily manipulated and is not a signal of sufficient liquidity.
VI. Conclusion, Background and Viewpoints
As an important innovative project in the field of decentralized finance (DeFi), Alchemix provides users with an unprecedented financial experience with its self-repaying loan mechanism and diversified asset management solutions. Through a lending method without liquidation risk, Alchemix provides a flexible, secure and efficient solution, which is highly competitive in the DeFi industry. However, despite Alchemix’s innovative products and efficient functions, the volatility of its token price and market performance, as well as liquidity issues, still need to be paid attention to. In general, Alchemix still has great development potential, but whether it can continue to attract users and stabilize its market performance requires more efforts in future operations.
At present, the biggest highlight of Alchemix is its unique self-repaying loan mechanism, which is a very rare and revolutionary feature in DeFi projects. This mechanism not only improves the efficiency of capital utilization, but also greatly reduces the risks brought by market fluctuations, allowing users to enjoy lending services while avoiding the risk of liquidation. At the same time, the diversified income strategies and decentralized governance model provided by Alchemix have also injected more sustainability into its platform. However, the sluggish market and the lack of core competitiveness are still urgent problems that the project needs to solve. Despite the positive community atmosphere, the liquidity of ALCX tokens is low and most of them are controlled by a few large households, which may pose a risk of price manipulation.
For investors, Alchemix’s token ALCX is currently facing certain market pressure, and it is almost impossible to return to the initial issuance price in the short term. But in the long run, Alchemix’s innovation in the field of decentralized finance and its unique self-repaying loan mechanism still have strong market appeal.
Investors can pay attention to the project’s technical progress and market dynamics, especially its liquidity improvement and changes in the token distribution structure. In the short term, since the rising trend of token prices has not completely broken the original bottom rubbing structure, please be cautious and do not over-invest; in the medium and long term, if Alchemix can further enhance its market liquidity and expand its user base, it will be a potential project worthy of continued attention.