Thread by @ogiberstein

People are starting to see the incredible value in @AlchemixFi but few understand the full implications. Let's take a look.

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1) In a bull market as we have it now, Alchemix' $DAI vault is a way to leverage your stablecoins that you may have taken in profits or that you hold to buy dips. You put in $DAI, your debt repays itself through @iearnfinance DAI vault...

2) So whenever you repay it back, your debt load is inevitably lower. The loan can not be liquidated in any circumstances. The 50% in alUSD you have taken out against collateral will have hopefully made you good returns in the bull market meanwhile

3) Already, @AlchemixFi is starting to suck in large amounts of $DAI. Dai becomes effectively a collateral to get alUSD which becomes synthetic leveraged DAI. Now imagine when @AlchemixFi will create $USDC and other stable coin vaults, it'll turn into a Bank of Stablecoins

4) Now this is where the fun reallyrstarts. In a bull market, @AlchemixFi is great but in a Bear market its true magic comes out. Imagine you've taken profits or escaped into stable coins. You might be getting a yield on them but why wouldn't you max out that leverage?

5) So you borrow alUSD vs DAI, then swap back into DAI and borrow more alUSD and repeat. Worst case scenario? Because your debt repays itself, your only risk is smart contract failure (Wen @NexusMutual?). You've just made 60-70% return on a stable coin in a bear market

6) So this is crazy. You can literally maximize yield in a bear market through leverage without price risk (there's also DAI peg risk but let's ignore that for now) and potentially have stable coin ready to buy dips while your debt pays itself off.

7) You could just put your DAI into the DAI @iearnfinance vault but why wouldn't you do it with leverage + more returns?

Few understand but @scupytrooples have built an absolute killer machine of an economic proposition and I'm massively excited to see where the project goes