What is Alchemix (ALCX)?
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🟢 The simple version
Plain English — no jargon. Start here.
Alchemix lets you take out a loan that repays itself — deposit DAI into Yearn, receive alUSD (spend it now), and the Yearn yield gradually repays the loan automatically with zero additional action from you.
Self-repaying loans
Borrow against future yield, not principal. Deposit $10,000 DAI → borrow $5,000 alUSD → DAI earns 5% Yearn yield = $500/year repays debt. After 10 years: fully repaid, you still have $10,000 DAI. No liquidation risk for DAI-backed loans (DAI is already a stablecoin, no price volatility). alETH: same model backed by stETH vault. ~2.4M ALCX very low supply. Transmuter maintains alUSD peg via arbitrage. Is ALCX legal in India? Yes. 30% tax, 1% TDS apply.
🟡 A bit more detail
For when you want to go a little deeper.
alUSD vs alETH
alUSD: DAI collateral, stable yield (3-5% Yearn), very low risk. alETH: stETH collateral, ETH staking yield (~3-5%), no ETH price liquidation risk. The Transmuter: if alUSD drops below $1, arbitrageurs deposit alUSD to receive DAI 1:1 over time from vault yield flows.
🟣 The full technical picture
For the technically curious.
Key facts
- Token: ALCX (~2.4M, very low supply)
- alUSD: Self-repaying DAI-backed loan
- alETH: Self-repaying ETH-backed loan
- No liquidation: Stable collateral model