Intro
Coming up with the highlighted topic of this newsletter was not particularly hard, as the most impactful news for the protocol came from Multichain, which made the team re-evaluate and re-design how Alchemix assets are bridged. This also sealed the fate of the Alchemix Fantom deployment.
Also, just before the release of this newsletter, signs point to Multichain having suffered a considerable hack. Alchemix assets are not yet affected, the potential damage is limited and does not pose a serious risk to Alchemix.
But the last months have been ripe with deep dives into protocol fundamentals and new partnerships as well, dive in to learn more!
Protocol Statistics
We also have an additional fun fact - since the inception of gALCX, over 34,500 ALCX have been automatically compounded for gALCX holders!
News & Announcements
Trouble In The Multiverse
After continued uncertainty around Multichain’s ability to restore access to their own contracts, the Alchemix core team has deemed it prudent to turn off the ability to bridge assets through Multichain, while a new solution can be deployed.
Connext’s solution was chosen and the new bridges are currently being deployed. Further announcements can be expected as the contracts go live.
Not Fantomstic News
Prompted by the forced bridging update and further hastened by the Multichain hack, AIP-92 passed governance, which greenlights the new Connext bridge, as well as the wind-down of operations on the Fantom chain.
Fantom was the first multi-chain deployment of the Alchemix protocol, but it has not been nearly as successful as was hoped. You can read the proposal in the forum post and the discussion in the #governance-proposals channel in the Alchemix discord.
The Raise Continues
In yet another round, the deposit caps of 3 ETH LST vaults have been increased.
Further increases are expected to take place soon, mainly on Optimism and also on Arbitrum after core contracts are deployed.
The Revolution Is Here!
Okay, fine, we will try to keep such headlines for huge announcements in the future, but after months, alUSD can be traded on Fantom again.
The previous alUSD pool on Beethoven X needed to be closed down due to a potential security vulnerability in the liquidity pool’s code base and it took some time to spin up the new “Dance Dance RevolutionalUSD” pool.
But incentives are now live and awaiting depositors!
POOL UPDATE: Not long after the new Beethoven X pool was established, the core team has been made aware of ongoing issues with Multichain, prompting the immediate withdrawal of Alchemix from the Fantom chain. The pool will, however remain operational with reduced incentives for the foreseeable future.
Apes Together Strong
Premia has been a valuable partner of Alchemix, currently being the only options protocol where alUSD and alETH can directly be used to underwrite options.
To further our relationship and bond, AIP-87 was passed that greenlit the development of a new collaborative product, the Alchemix-Premia Options Vaults.
The AIP also included a treasury swap that has since been completed. Coincidentally, at the time of the swap, $50k was worth almost exactly 69,420 PREMIA tokens.
A New Quarter, A New Report
As is now customary, we have released our Q1 2023 Financial Report.
Dig in to learn more about what makes Alchemix tick and how well the protocol performed.
This Is Not The Sushi That I Ordered
SushiSwap had been the home for ALCX liquidity ever since the ALCX token launched. However, with the Balancer ALCX-ETH 80/20 pool becoming the basis of the new veALCX system, the decision was made in AIP-82A, that incentives, and as a result the liquidity itself would be moved over to Balancer, completely.
The operations to enforce the changes have taken place since, so liquidity providers need to migrate their liquidity to the new pool to continue earning rewards. A migrator tool has been developed, you can find the instructions on how to use it in the published medium article.
The Elixirs Continue Printing
A new revenue section has been added to the dashboard and protocol income is now easy to track. Alchemix continues to produce healthy revenues, head over to the Revenue tab on alchemix-stats.com to learn more.
v1 Migration Update
On the topic of migration, the option to migrate funds from the discontinued v1 Alchemist deposit vaults to the v2 Alchemist deposit vaults has been available for over a year at this point. As a result of most deposits not being migrated even after months of the introduction of the migration tool, the decision was made in AIP-71 to automatically migrate all positions.
The operations team has been gradually migrating these user funds, and only a small fraction of deposits remain in the temporary v1 migration contract.
For any users that still have funds in the temporary contracts, it continues to be possible to perform a manual migration to v2.
The Pharaohs Approve
In anticipation of Alchemix launching on Arbitrum, the bizdev team has been leading a high number of partnership discussions. The experience has been quite a pleasant one, with projects being very open to collaboration.
Probably one of the most important is our partnership with RAMSES, that will serve as the base liquidity layer for our alAsset pools.
Archimedes
Archimedes enables leverage to be taken on certain liquidity pools. In their v1, they focused on stablecoins and OUSD as the strategy that can be used for leverage.
In their v2 they are adding ETH as a collateral option and additional yield strategies, the alETH-ETH Curve pool being one of them.
It’s A New Dawn, It’s A New Day
As a small Alchemix grant, Alphaday has developed an information dashboard for all things Alchemix. The dashboard aggregates a wide variety of information, so it is great to learn about the project, keep up to date with news and developments.
Ain’t that Swell?
ALCX holders can take part in Swell’s Voyage and collect a bonus. Voyage adds a bit of a gamification element to ETH liquid staking through Swell’s LST. Head over to their app to learn more.
OKcontract widgets
Alchemix has partnered up with OKcontract to speed up UI development for smaller, utility functions. OKcontract allows developers to deploy widgets that they can easily connect to their smart contracts, not having to spend time on UI development.
The first collaboration was the Balancer ALCX/ETH migrator tool, you can read about it in the medium article.
Down The Rabbit Hole
Hop into the brand new incentivized alUSD-FRAX and alETH-frxETH pools on Bunni!
Bunni enables depositors to take advantage of concentrated liquidity on Uniswap v3 through single-deposit strategies. The pools are brand new, so current APRs are still on the higher end of the spectrum.
Racer Alert!
Velodrome has migrated to their v2 contracts, requiring all veVELO holders and liquidity providers to migrate to new contracts. If you have active positions on the platform, make sure you do so in order to continue earning rewards.
ICYMI
Catch up on all the governance updates and new articles since the last edition.
AIP-89 Expand Vesper vault offerings
AIP-91 Alchemix quick frontend tool grant
Results of AIP-87 Launch Alchemix-Premia options pools
Results of AIP-88 PancakeSwap trial and emissions allocation update
AIP-92 Alchemix L2 bridging update / Fantom wind-down
Results of AIP-89 Expand Vesper vault offerings
Results of AIP-91 Alchemix quick frontend tool grant
Community & Media
Alchemix Fundamentals 101
Vesper Finance, an important partner of Alchemix, has published an article about the core mechanics of our system. It explains how the protocol makes money and a few important pieces that make the whole system function.
Fundamentals Quickie
Scoopy was hosted by Token Terminal to give a quick, 20-minute overview of protocol fundamentals. The team did a great job as they managed to squeeze all of the important topics into a short episode.
Premia chat
Ov3rkoalafied appeared on a joint Twitter space with Premia. The developments of both projects were discussed in length as well as past and future planned collaborations.
Ice, Ice, Baby
Ice is a Jones DAO team member and made a Twitter thread covering the fundamentals of Alchemix, including a bit of a lookback in time.
Koalas Do Tweet
Ov3rKoalafied gave a bit of a summary about the rollout of Alchemix on Optimism, as well as why the OP grant has not started to be distributed, yet.
Spoiler alert: It is imminent!
BPT 80/20s
Alchemix chose the Balancer 80/20 pool model as the basis for veALCX. The Twitter thread by Aura Finance explains what the larger tokenomics innovations were these last few years and shows what the 80/20 pools bring to the table.
Has Your ENS Paid For Itself, Yet?
Alchemix has released SRENS (Self-Repaying ENS) and it is great to see the news reaching an ever larger audience.
Travel With Alchemix
We always love to highlight real-world use-cases for Alchemix.
“Travel and save at the same time!” could be the new slogan for the protocol!
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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One of the best project newsletter i'm reading! Thanks for the work guys.