What Is Alchemix
The live Alchemix price today is $239.87 USD with a 24-hour trading volume of $5,776,650 USD. Alchemix is up 3.57% in the last 24 hours. The current CoinMarketCap ranking is #320, with a live market cap of $68,043,414 USD. It has a circulating supply of 283,673 ALCX coins and a max. supply of 478,612 ALCX coins.
If you would like to know where to buy Alchemix Defi, the top exchanges for trading in Alchemix ar currently FTX, Gate.io, Hoo, Hotbit, and 1inch Exchange. You can find others listed on crypto exchanges page. Alchemix token is the governance token for the Alchemix protocol.
Important Points Table Of Alchemix Cryptocurrency
| Basic | Points |
|---|---|
| Coin Name | Alchemix Cryptocurrency |
| Short Name | ALCX |
| Max Supply | 478,612 |
| Explorer | Click Here To View |
| Chat | Click Here To Chat |
| Website | Click Here To Visit |
How to Buy the Alchemix Cryptocurrency Coin & Trade On Exchange?
Platform
Alchemix Defi is a platform to create yield-backed synthetic tokens. The requirements for creating such a synthetic token is that any existing token, such as stablecoins or ERC20s, must already have a yield generating mechanism on chain. This could be lending markets, such as Compound or AAVE, or vault-like products, such as the yvDAI Vault, or aLINK Vault. The Alchemix team are targeting stablecoins for first synthetic token, which will be called alUSD (the al denoting the Alchemix platform). The plan is for alUSD to be mintable from several stablecoins, but the protocol will initially only support DAI. The examples in the following sections for alUSD will apply to other al-Tokens in a near identical way. The dApp contains the following components: Vaults, Transmuter, Farming, and Treasury.
Yield Farming
Recently, the “Yield Farming” trend has gained popularity. DeFi protocols are incentivizing liquidity and certain user behavior by offering rewards in the form of their governance token. This idea was started by the popular synthetic asset application, Synthetix [3], as a way to incentivize creation of Synths and to provide liquidity bridges into and out of their system. Then, the trend hit a tipping point when Compound incentivized lending and borrowing by rewarding their COMP token. Surprisingly, these governance tokens have achieved high valuations, so if one factors in the price of the governance tokens they receive, their yield jumps dramatically, often to 20% or higher APY. The second order effect of this is that lending and borrowing demand and rates have increased along with these incentives.
Automated Market Makers
Alchemix Defi of the key applications of the DeFi stack is Automated Market Makers (AMMs). The four premier AMMs are Uniswap [4], Curve [5], Sushi [6], and Balancer [7]. The idea is that users deposit liquidity to both sides of a trading pair into these decentralized exchanges and then earn fees when people trade using their liquidity. Uniswap pioneered the concept in 2018 by using ETH as the base trading pair for all tokens on Uniswap, and their latest version allows for any arbitrary two-token pools and smart routing to connect the liquidity in the system. Curve is an AMM that specializes in
soft-pegged assets, for example stable coins and the various implementations of Bitcoin on Ethereum.
They chose to use soft-pegged assets because users would not be affected by trading pairs deviating significantly from their initial price ratios (a problem known as impermanent loss). Sushi started as a fork of Uniswap, but is rapidly differentiating itself as an innovative AMM with powerful features and incentives. Balancer is similar to Uniswap, but instead of having pools that only consist of two tokens, it can have up to eight tokens in a pool with arbitrary weights assigned to the assets in the pool. In effect, Balancer is an automated ETF creation platform. Each AMM has its own
strengths and weaknesses in comparison to each other. In totality though, AMMs have proven to be a powerful tool in the DeFi stack.
Yield Aggregators
One recent innovation in the DeFi space is the advent of yield aggregators, created and popularized by yEarn with their yVaults [8]. These products work by depositing your token into a vault contract. The vault then gives you an ERC20 that represents your share of the pooled tokens in it. From there, the tokens are deployed to a strategy that tries to use the deposited tokens to farm yield, which is usually done by farming DAO tokens such as COMP and CRV. The strategy then takes the DAO tokens and sells them for the underlying tokens in the vault, thus increasing the amount of tokens your vault shares lay claim to. These strategies are not always the best for getting returns as the strategies they use are crafted to limit any downside risk, but are often much better yield than just depositing on lending markets.