Alchemix report: a Decentralized Finance protocol that allows people to "eat the future"

一、Project Introduction

Alchemix is a Decentralized Finance protocol that aims to provide users with a new financial experience based on collateralized assets. With Alchemix, users can advance future asset returns without paying interest or taking on liquidation risks, greatly improving capital utilization. The project is centered around Decentralization governance and advocates for transparent and fair Financial Service concepts, injecting fresh vitality into the Decentralized Finance ecosystem.

Alchemix's core function is its unique self-repayment loan mechanism. After users mortgage assets into the Smart Contract, they can immediately borrow corresponding alAssets (such as alUSD). Over time, the income generated by the mortgaged 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 Fluctuation, providing users with great convenience and security.

Alchemix supports multiple Collateral types and provides diversified yield strategies. Users can choose the most suitable collateral scheme for their asset management needs based on their personal requirements, enabling flexible fund allocation.

At the same time, its Transmuter feature allows users to deposit the generated alAssets into the converter, gradually converting them into their corresponding underlying assets at a 1:1 ratio. This function not only stabilizes the price of alAssets but also provides users with a diverse range of asset management options.

Alchemix is managed by a Decentralized Autonomous Organization (DAO), and ALCX token holders can participate in protocol governance decisions through voting. This governance mechanism ensures the transparency of the protocol and the depth of community participation, while also laying the foundation for the platform's sustainable development.

Overall, Alchemix has become an important pioneer in the Decentralized Finance field with its innovative mechanisms and user-friendly design. Its unique self-repaying loan model, diversified collateral strategies, and Decentralization governance structure provide users with efficient, flexible, and secure asset management tools.

二、Latest News and Updates

According to official X news, ALCX has updated its latest optimized annual profit, and the appreciation of the wstETH OP insurance pool will also continue for 6 months, with 50% of the deposit as collateral for borrowing. Users can earn full Interest without liquidation risk.

Official X information release, ALCX/ETH pool voters generate a $875,000 incentive. The incentive method adopted by the official is a typical 80/20 Balancer pool fee sharing method.

Among them, 50% is allocated to Liquidity Providers, 12.5% is allocated to DAO organizations, and 37.5% is allocated to veBAL lockers.

Meanwhile, the ALCX/ETH 'Core Pool' state transforms this split into: 50% Liquidity Providers, 12.5% Balancer DAO, and 37.5% voting incentives for veBAL/vlAura holders supporting the Core Pool.

By adjusting the core pool, ALCX has created $875,000 in rewards for voters supporting the pool. Thanks to the voting multiplier, this number is expanded to over $100,000 in rewards. Overall, this is Favourable Information for the platform's liquidity and governance.

III. Large Unlocking and Distribution

The ALCX Token has no pre-sale or external financing during issuance, no hard cap, but has a pre-set Token unlocking minting plan. The issuance amount is the rate at which new ALCX Tokens are minted. The Token issuance amount is allocated to Liquidity Providers, the treasury, and protocol contributors.

ALCX's issuance (slow mint) gradually reduces the issuance amount over three years and continues to maintain a fixed issuance amount per week. Alchemix is now in the tail period, minting 2200 ALCX indefinitely every week.

In the initial issuance of the project's Token, 15% is pre-mined for Alchemix DAO, bug bounty is 5%, and 80% of the Token can be obtained through LP stake.

Founders, developers, and community contributors can access the exclusive staking pool, which will receive 20% of the current ALCX circulation. This is equivalent to 16% of the supply in 3 years' time.

Stakers and Liquidity Providers are eligible to receive 80% of the ALCX Block Reward, which will be equivalent to 64% of the supply after three years. Currently, a portion of this issuance is being sent to the reserve pool.

The initial supply of Token is 478,612 $ALCX, minted as pre-mine. Alchemix calculates that there will be 2,393,060 $ALCX in circulation after three years, distributed as follows: 15% to the DAO treasury, 5% for bug bounty program. The stake pool distributed approximately 22,344 $ALCX Tokens in the first week, decreasing by 130 $ALCX per week for the first 3 years. The calculation is an approximation because $ALCX rewards are calculated per block, while network conditions may have a slight impact on the schedule.

Alchemix has a history of over three years, which means a fixed issuance of $2200 ALCX per week. This will result in a gradually decreasing inflation rate over time.

The above two figures mainly reflect the supply, incentives, and supply situation of ALCX on the time dimension.

IV. on-chain status

The following is the TVL, Market Cap, and Token price of ALCX Token on DefiLlama. Overall, after a cliff-like decline in TVL in 2022, the Market Cap and Token price have also remained sluggish, with little improvement so far.

The indicators in the chart below mainly reflect the data of ALCX's volume, Liquidity, and total market capitalization. From the chart, it can be seen that the volume has not shown a significant decline overall, while the Liquidity is at a historical low but has been recovering recently.

The figure mainly captures the trend of USD inflows and community governance, as well as developer expectations. Overall, after the sharp decline in TVL, USD basically no longer flows into the ALCX Token. However, relatively speaking, the community's attitude is quite positive, and developers do not engage in excessive Arbitrage activities. Overall, the community atmosphere is very good.

The diagram below shows the Stable Coin ALUSD issuance of the Alchemix project, and overall, it can be seen that the main supported assets are ETH and OP. Furthermore, considering the supply, overall it does not have a remarkable performance and it is difficult to generate a core competitive differentiation.

The following figure shows the revenue situation of ALCX platform this year, which is provided by the official statistical platform.

The following figure also reveals the Holding data related to ALCX.

5. off-chain situation

The above chart shows the overall Fluctuation in the past year. Generally speaking, with the hype of DeFi, ALCX, as a veteran platform, has also gradually gained attention and follow-up.

But if we look at the long term trend, the current ALCX, even with some pump, is far from the initial issuance price, which is not conducive to boosting market confidence.

The chart above shows the distribution of ALCX Token holdings, indicating that a few Whales hold over 70% of the ALCX Token assets. This means that the price may be easily manipulated and is not a sufficient signal of liquidity.

VI. Conclusion, Background Information and Perspectives

As an important innovative project in the field of Decentralized Finance (DeFi), Alchemix provides users with an unprecedented financial experience through its self-repayment loan mechanism and diversified asset management solutions. By offering a flexible, secure, and efficient solution without liquidation risks, Alchemix is highly competitive in the DeFi industry. However, despite its innovative products and efficient features, the fluctuation of its token price and market performance, as well as liquidity issues, need to be followed closely. Overall, Alchemix still has tremendous development potential, but whether it can continue to attract users and stabilize its market performance requires more efforts in future operations.

Currently, the biggest highlight of Alchemix is its unique self-repaying loan mechanism, which is a very rare and revolutionary feature in the Decentralized Finance projects. This mechanism not only improves the efficiency of capital utilization, but also significantly reduces the risk brought by market fluctuations, allowing users to avoid the risk of liquidation while enjoying the lending services. At the same time, the diversified income strategies and decentralized governance model provided by Alchemix also inject more sustainability into its platform. However, the project still urgently needs to address the market's downturn and lack of core competitiveness. Despite the positive community atmosphere, the Liquidity of the ALCX Token is low and mostly controlled by a few Large Investors, posing the risk of price manipulation.

For investors, the Token ALCX of Alchemix is currently facing some market pressure and is unlikely to recover to its initial issuance price in the short term. However, in the long run, Alchemix's innovation in the DeFi field and its unique self-repaying loan mechanism still have strong market appeal.

Investors can follow the project's technical progress and market dynamics, especially the improvements in Liquidity and changes in Token distribution structure. In the short term, due to the pump trend of Token prices that has not completely broken the original bottom structure, please remain cautious and avoid excessive investment; however, in the medium to long term, if Alchemix can further enhance its market Liquidity and expand its user base, it will be a potential project worth continuous follow.