You've heard of no-loss lottery. Now, get ready for no-loss stable coins! This week, we discussed $ALCX, @AlchemixFi, ft interview with @scupytrooples!
#stablecoin $alUSD $ALCX
#stablecoin $alUSD $ALCX
How does #Alchemix work?
Deposit DAI into the system to borrow alUSD
Borrow up to 50% of the DAI collateral
Deposited DAI is used to generate yield
The yield is used to pay off the 50% alUSD borrowed
Deposit DAI into the system to borrow alUSD
Borrow up to 50% of the DAI collateral
Deposited DAI is used to generate yield
The yield is used to pay off the 50% alUSD borrowed
Why is it a no-loss stable coin?
Both assets are correlated
You can always trade alUSD for DAI
And they move in the same direction
Both assets are correlated
You can always trade alUSD for DAI
And they move in the same direction
Think of it like So Alchemix "brings forward" the yield generated to what you can use today, in the form of alUSD.
You can use it now, while the collateral works for you to generate the said yield.
You can use it now, while the collateral works for you to generate the said yield.
The protocol has 2 pools:
1) turning DAI to alUSD
2) turning alUSD to DAI
if alusd > $1, mint more
if alusd < $1, someone can go to pool 2 to get DAI out and deposit alusd
1) turning DAI to alUSD
2) turning alUSD to DAI
if alusd > $1, mint more
if alusd < $1, someone can go to pool 2 to get DAI out and deposit alusd
What about $ALCX?
% of the yield generated goes to $ALCX holders
Alechemix DAO is coming soon
% of the yield generated goes to $ALCX holders
Alechemix DAO is coming soon
Check out the full video for other parts, including comparison with other protocols & some opinions + limitations.
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