Intro
In this newsletter, we can report on two important developments the community has long been waiting for: The semi-finalized state of the DAO, and the reopening of the stETH vault! Additionally, new liquidity pools, Snapshot vote delegation, and the alUSDFRAXBP Elixir AMO were successfully launched. Read on to dive into the details!
Protocol Statistics
We also have an additional fun fact - since the inception of gALCX, over 23,800 ALCX have been automatically compounded for gALCX holders!
News & Announcements
veALCX progress report
The development of the DAO had been ongoing behind the scenes for the better part of 2022. An update on the semi-final state of the veALCX system was released in December, with the code going to audit on the 13th of February 2023.
The gates are open!
Shortly after the Terra LUNA incident earlier in 2022, as the price of stETH depegged from ETH, deposits into the Alchemix Lido stETH vault had been temporarily paused. This pause was due to potential instability to the Alchemix system that could be introduced by a depegged stETH. But after Alchemix’s intrepid dev team implemented a safeguard, the Alchemix Lido stETH vault was reopened! Subsequent to reopening, it only took 7 days for the increased deposit cap to be hit.
R2D2? L2D4!
The new Saddle pool with alUSD and 3 other stablecoins called L2D4, has been launched on Arbitrum. Six different protocols will be providing incentives for this pool, Alchemix included. This also marks the official entrance of the protocol to the Arbitrum ecosystem. However, a couple of the coins that are included in the grouping suffered some exploits, and so further implementation of the L2D4 pool was put on hold until the issues underpinning those coins could be addressed.
Vote Delegation
Is real life always getting in the way of submitting your Alchemix Snapshot governance vote? Fret no more! Alchemix has now implemented voting delegation! Delegate your ALCX governance voting power to someone who shares your vision of how Alchemix should evolve! Anyone can put themselves forth as a delegate and convince you, dear voter, why they are the right choice. Additionally, if you have delegated your vote but find that you do have time to vote after all, you can still vote for yourself, which will override your delegation vote.
A Fraximalist deployment
As per AIP-72-A, the partial Elixir AMO migration to the alUSDFRAXBP Curve pool has started. This is expected to boost the price of alUSD, as well as considerably increase the revenue of the protocol.
Q4 2022 Financial Report
The Q4 Financial Report is now available. The report dives into numerous financial aspects of the Alchemix protocol. The full report is pretty extensive, so a distilled version is now also published.
MAI we offer a pool?
AIP-74-B greenlit a joint liquidity pool to be launched with QiDao’s MAI stablecoin on Velodrome. Both protocols will contribute to maintaining the pool and we are happy to have QiDao on as an Alchemix partner!
Engage the Flux Capacitor!
As part of the new veALCX system, a new “reward token” is being introduced. Community members were presented the opportunity to suggest and then vote on what the name of this token should be. More than 91k ALCX was discharged to select the winner: FLUX!
Alchemix joins the race
While Alchemix controls a healthy voting power in Velodrome with its veVELO shares, it now also started to provide bribes for other voters to expand alAsset liquidity pools on Optimism.
The Unstoppable usage of Alchemix
The vote to financially support Unstoppable in releasing their fair funding platform has successfully passed and they are already moving ahead with launching their first campaign. Their new product would use Alchemix as its “engine”, making project funding cheaper and less risky.
tBTC v2 launch
alBTC you said? Well, not quite, but Alchemix is now taking part in securing the tBTC v2 Bitcoin bridge on Ethereum. Threshold network reached out to Alchemix alongside a few significant and well-respected DeFi protocols, such as Curve, Aave, Yearn, Synthetix and Euler to operate nodes and take on the crucial “minter” role for tBTC v2.
ICYMI
Catch up on all the governance updates and new articles since the last edition.
AIP-74-A Optimism Grant Allocation for Vault Boosts
AIP-74-B Optimism Grant Allocation for Liquidity Incentives
Results of AIP-72-A Initiation of the alUSDFRAXBP AMO
Results of AIP-72-B Addition of FRAX as alUSD collateral
Results of AIP-73U Fair Funding Platform by Unstoppable
Governance Process Update
AIP-75 L2D4 alUSD Liquidity on Arbitrum
Results of AIP-74-A Optimism Grant Allocation for Vault Boosts
Results of AIP-74-B Optimism Grant Allocation for Liquidity Incentives
AIP-76 alOHM: new alAsset & launch proposal
Results of AIP-75 L2D4 alUSD Liquidity on Arbitrum
AIP-80 Elixir AMO Buyback and Bribe
AIP-81 Approve Alchemix Grants Program Round 1
[Community vote] New Token Name
Results of AIP-76 alOHM: new alAsset & launch proposal
AIP-79 Transmuter ERC-4626 Yield Strategy by Revest
Results of AIP-80 Elixir AMO Buyback and Bribe
Results of AIP-81 Approve Alchemix Grants Program Round 1
Results of [Community vote] New Token Name
AIP-78 Deploy funds in Blueberry
AIP-82-A Approve Migration of ALCX Liquidity to Balancer
AIP-82-B Execute Strategic Acquisition of AURA
AIP-83 Alpha Vaults Update
AIP-84 Pre-authorize grant funding to create Alchemix Leveraged Vaults
Results of AIP-79 Transmuter ERC-4626 Yield Strategy by Revest
Community & Media
The Koala Double
Ov3rkoalafied was a guest in Saddle Finance’s WateringHodl Twitter spaces. Listen in to learn why giraffes have long necks!
He also represented Alchemix on the Optimistic Podcast, sharing the guest seat with Yearn Finance.
The Llama APIs are live
Protocols and technically savvy individuals can now use the DeFiLlama APIs to easily integrate the prices of Alchemix LP tokens into their solutions.
Paladin article
Paladin released an article detailing the new veALCX system along with some useful context.
And the award goes to…
With a cool cover image like that, it must be a great thread on Alchemix, right? Right! It is only February, but we may already have a winner for the “longest Twitter thread of 2023” award.
Where my gALCX at?
Community contributor IMIMIM has created a project in Google Data Studio that tracks the accrual of ALCX in gALCX over time.
Let the ALCX compound!
Alchemixmas magic
Community contributor vitchyvoodoo used the magic of Alchemix the way it should be used! Now if you are wondering, this happened before Christmas. There are probably no Christmas markets in York this time of the year, not even Alchemix’s magic can make that happen.
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.gg/alchemix
Medium: https://alchemixfi.medium.com
Disclaimer
This newsletter is provided for informational purposes only and does not constitute any kind of advice. Use cryptocurrencies and Decentralized Finance (DeFi) at your own risk.
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