What is Alchemix?
Why we like it
Have you ever heard of a loan that automatically re-pays itself? Alchemix uses the interest from your collateral to do just that. Another DeFi protocol that absolutely blows our minds. Since diving in, we haven't seen the variable stable coin (remember, 1 stable coin always = $1 USD) APY dip under 6%. We've also seen it climb over 30% (!!!). It get's better. When depositing DAI stable coin into Alchemix, they offer a 50% loan against your collateral. With that 50% loan, you can do whatever you want with it. Reinvest into the Alchemix ecosystem, swap the allotted alUSD (another stable coin) into another crypto coin, or convert the alUSD into cash and buy a boat! Alchemix advertises the platform as "magic" and we have a difficult time arguing against that.
We've chosen to reinvest within the Alchemix ecosystem. We take 50% of our collateral (in alUSD), farm it in an alUSD pool (APR 12-18%) to earn ALCX tokens. We THEN take the ALCX tokens and farm them in the ACLX pool (APR 70-90%) to earn more ALCX. Simple right?! Check out the Alchemix website & youtube channel below for assistance in understanding this stuff. Both have helped us wrap our heads around this spectacular new innovation.
Obviously do your own homework before tailing any of Our Bets. "Know your limit, play within it" is also some words to the wise. Here are the steps we used to get involved with Alchemix.
Deposited DAI into the Alchemix vault.
Borrowed 50% of our collateral in alUSD.
Farmed the alUSD in the alUSD Pool to earn ALCX tokens.
Once our ALCX tokens build up, we claim them, then stake them in the ALCX pool.