Alchemix, a Roadmap of v2
November Alchemix Newsletter
November Alchemix Update
Dear Alchemix Friends,
In this November Edition of the newsletter, we would like to take the time to discuss some basics about the magic of Alchemix for new users, Alchemix v2, & the Roadmap.
As always, we are asking for your ideas, articles and article requests, art, or anything else you want to offer to benefit the newsletter. Your support will not go unrecognized and the tip bot has been loaded up.
Let’s dive into our November Update! There is a lot to discuss - everything from protocol stats, Alchemix in the media, v2, and the future roadmap.
Community artwork in this issue is courtesy of community member ! Jacob !.
Alchemix Protocol Stats
Total Value Locked (TVL) $1,600,000,000
DAI Vault TVL $438,559,442
DAI Vault APY 7.73%
ETH Vault TVL ETH 63,558 ($296,498,070)
ETH Vault APY 4.13%
Protocol owned liquidity via bonding 2% ($4,052,000)
Twitter Followers 49,300
Discord Members 8,840
The number of Alchemix Twitter followers and Discord members continues to steadily increase. During October, we also saw a nice rise in yields in both the DAI and ETH Vaults.
Announcements
Alchemix v2 Shipped for Audit
Hand-off of the v2 codebase was made to Runtime Verification on the 1st of November. This event has been highly anticipated by the community and caps off a mammoth effort from the core team. See the announcement below, including a teaser trailer.
Fundus are Safu
Following on from the recent Cream Finance exploit, there was some concern amongst users that Alchemix might have been impacted via any funds deposited with Cream. Rest assured, Alchemix has confirmed that no funds were exposed and that all is well.
ALCX Single-Asset Bonds Have Landed
The ALCX Bonding program has been expanded to include Wrapped Ether and DAI. Previously, users who bonded would hold (or obtain) an ALCX/ETH LP position. It’s now possible to bond ALCX directly with wETH or DAI, which may save the user some gas. Note also that single-asset bonds provide an additional boost to Alchemix yields; see the original proposal by community member ButlerAndTheThirdStringers for more information.
Patron NFTs
All who donated to Alchemix earlier in this year are reminded that the Patron NFTs are available to be minted. Don’t miss out!
PSA: Beware of Scams
The rising popularity of Alchemix is incentivising bad actors to scam Alchemix users. A variety of Alchemix-styled websites have been reported recently, and some users have unfortunately reported losing their funds. As a reminder:
Always confirm that you are using the legitimate Alchemix dApp: https://app.alchemix.fi
The Alchemix dApp will never ask for your seed phrase or for any other passwords.
Alchemix developers, moderators or support personnel will never DM you first in the Discord.
Please also report scams or fraud directly to the #report-scammers channel in the Alchemix Discord.
Witchy Woo’s Alchemix Awakening
New to the world of Alchemix and Defi? Feeling discombobulated by Defi discourse? Are you starting from scratch, befuddled by this alchemical academia and wizardry?
Fear not, help is at hand!
Follow intrepid Alchemix apprentice Witchy Woo as she begins her journey of enlightenment…
The Road to Alchemix v2
The Alchemix v2 roadmap has been revealed! People expecting the usual weekly fireside chat on October 8th were pleasantly surprised when the call was interrupted by an impromptu roadmap announcement, where the Alchemix team unveiled their plans and ambitions for the launch of Alchemix v2. Alchemix v2 aims to be a composable money lego that will be a major tool for the management of both individual portfolios and DAO treasuries.
The team revealed the following about the v2 roadmap:
New collateral types will be accepted, including staked Ether (stEth), wrapped Bitcoin (wBTC), and additional stablecoins.
Users will be able to choose where their collateral is deployed to tune the balance between risk and reward.
Users will be able to delegate their available credit to other addresses.
The v2 architecture is modular, permitting the future addition of additional components, including:
Delegation of unused collateral to the protocol in return for ALCX rewards.
Streaming of payments from the available credit.
Using NFTs as collateral for receiving peer-to-peer delegated credit.
Additionally, the launch of v2 will pave the way for several fantastic developments, including:
The upgrade to the Alchemix DAO, including gamification with materia points, materia shards, and NFT integrations.
Further expansion of accepted collateral types.
Expansion into Ethereum Layer 2s, side chains, and other EVM-compatible L1s.
Particularly exciting and worth elaboration is the v2 modules. Alchemix v2 is an immensely powerful platform on which many new tools can be built.
One future module is StreamPay, which is possible because of the credit delegation feature. Currently, if a DAO wishes to pay someone for their work in multiple installments in a decentralized manner, they have to deposit the full amount of capital. For example, if they wish to pay a user 10k every week for 3 weeks, they have to deposit the full 30k right away - and that 30k remains idle. With StreamPay, the DAO could leave their capital in an Alchemix Vault, and allow the vault to automatically delegate 10k of credit as payment each week. This way, the capital is earning yield right up until the point it's withdrawn as payment.
Another future module is a peer-to-peer credit market with flexible collateral. The market would allow borrowers to match up with lenders with any asset type and agreed-upon terms. For example, a user may want to borrow some alUSD for a certain amount of time and may own a CryptoPunk. The user could offer up their CryptoPunk collateral and specify how much alUSD they want, how much interest they will pay, and a loan repayment period. A different user who has alUSD credit available can delegate this credit to the CryptoPunk owner - at the end of the period of the loan being repaid, they get their alUSD back plus interest. If the loan is not repaid, they receive the CryptoPunk! Additionally, the CryptoPunk owner could leave loan terms blank and hold an auction for the best loan offer. Because the market is peer-to-peer, any Ethereum-compatible token can be used!
This was certainly a fireside chat chock-full of alpha! Attendance was recorded by the project-designated cat-herder gorby, and POAPs will be issued soonTM.
Alchemix v2 was delivered to Runtime Verification for a comprehensive audit on the 1st November. Deployment to Ethereum Mainnet is anticipated for late December or January 2022.
For more information see the following references:
Community & Media
Scoopy Trooples on the Media Circuit
Alchemix co-founder Scoopy Trooples has been busy taking interviews recently, with appearances on several podcasts and news publications, where he discussed the Alchemix protocol, DeFi 2.0, and the coming launch of Alchemix v2.
Bankless - A New Era for DeFi | Scoopy Truples of Alchemix
The Defiant - Scoopy Trooples of Alchemix: "Liquidity Mining is Like a Drug; You Have to Wean Yourself Off it Over Time"
Mission: DeFi - Scoopy Trooples & Alchemix are Building a Powerful Financial System Built Upon Self-Paying Interest Free Non-Liquidating Loans
The Daily Millennial - Is DEFI 2.0 the next BIG WAVE in Crypto?
Stockhead: Crypto loans that repay themselves? Here’s Alchemix founder Scoopy Trouples on how that works
Bankless DeFi 2.0 Summit
Scoopy Trooples joined representatives from Tokemak, Olympus DAO, TracerDAO and Rari Capital in the Bankless DeFi 2.0 Summit. The discussion covered the the current state of DeFi, the DeFi 2.0 narrative, and what to expect in the future.
How To Beat the 99% With Alchemix
Community member aksəl has been investigating Alchemix and written an introductory piece entitled Democratizing Wealth: How the 99% can use interest to pay for living expenses.
Exploring Alchemix Use Cases
Brad Nickel, host of the Mission: DeFi podcast, has produced a twitter thread detailing different scenarios that can take advantage of Alchemix.
Alchemix v2 Is Attracting Attention
Nick Garcia of Messari Crypto has provided a breakdown of the Alchemix Roadmap, including the new features in v2 as well as the migration towards on-chain governance.
Hot Takes
Community <3 Alchemix
Governance
This section of the newsletter will summarize all active governance proposals (open for voting or going to a vote soon), as well as outline any proposals that have been passed since the last newsletter.
Active proposal:
AIP- 28: A new curve pool that consists of decentralized stablecoins, alUSD, FRAX, and FEI, using each protocol’s CVX vote for the pool in the gauge
We propose a new curve pool that consists of decentralized stablecoins, alUSD, FRAX, and FEI. Each of our respective protocols spends a lot of resourcing providing liquidity for our respective 3crv pools. By forming the d3 pool, we can pool our resources together and offer deep liquidity between our tokens.
The Alchemix, Frax, and Fei teams have discussed this, and together, we can leverage each protocol’s individual strengths. Currently, between these three teams, we control over 500k CVX, deep treasuries, and the ability to bootstrap with our respective governance tokens.
For this proposal, Alchemix will split its pool incentives and CVX voting power equally among alUSD3CRV, alETH, and d3 (pending gauge acceptance). The Fei and Frax teams will also be contributing towards incentives to maximize our collective efforts. Read more here.Not put to a vote yet - credit Scoopy
Closed Proposals:
AIP- 29: This AIP aims to change the emissions from the DAO
The last major update of the allocation of our weekly emissions schedule was done in May (AIP-9). Since then there have been a few updates in separate proposals, including a bribing allocation (AIP-18), the introduction of bonds (AIP-21) and tALCX staking (AIP-22). This AIP is to formalize the emissions allocation going forward in light of these new developments.Read more here.
Passed - credit Felix
Snapshot: Temp check for alUSD/alETH Bonds.
For full details of this implementation, check out the governance forum post on this here.
Passed - credit ButlerAndTheThirdStringers
AIP-30: This is an amendment to AIP-17, which put the treasury's stablecoin balance in cvx3CRV to earn CRV and CVX rewards.
This proposal will move the cvx3CRV to cvxalUSD3CRV and the majority of the treasury's ETH holdings into cvxalETH to simultaneously provide liquidity for our essential markets and also to earn rewards to increase our voting power in Convex. Read the full AIP here.
Passed - credit Alunara
Resources
Stay safe online! When using Alchemix, always be sure that you are interacting with the official resources:
Website: https://alchemix.fi
Twitter: @AlchemixFi
Discord: https://discord.com/invite/alchemix
dApp: https://app.alchemix.fi
Medium: https://alchemixfi.medium.com