Devs gon’ done something!
There’s a lot to report on this month… *deep breath* Alchemix is getting ready for an ALCX tokenomics makeover, emissions are getting redirected to the treasury, the Elixir AMO has emerged to complement the Transmuter, and Alchemix has been deployed to Fantom. In addition, Alchemix has produced its first Quarterly Report. The market conditions are widely acknowledged to be “less than great”, but the core team has their heads down and are focused on building out the ecosystem. Speaking of the ecosystem - it’s thriving with integrations (hello self-repaying debit card…).
In this edition, we also introduce the In Case You Missed It (ICYMI) section, where we consolidate all of the updates from the newly diversified Alchemix Journal. We’re now publishing timely notifications of Governance updates and will instead summarize them here. Also mentioned this month is the Self-Repaying Timber Mill article. Oh, and another Real-World Alchemy post will drop in the coming days…
Don’t Get Rekt
Everyone in the space is aware of the carnage that has occurred in the markets over the past few weeks. CoinDesk reported that the events around the LUNA crash resulted in over $1Bn in liquidations. There’s now wide acceptance that the bears are on the loose.
Alchemix is proud to have designed a self-repaying lending product that does not expose its borrowers to forced liquidations. At this point we’ll refer back to the “How to Never Get Liquidated Again. Ever.” video, which explains how it all works.
Community artwork in this edition is again courtesy of community regular Jacob. It’s a bit on the dark side…is this the standard process for launching on Fantom?
Protocol Statistics
News & Announcements
ALCX Tokenomics Update
An ad-hoc Tokenomics discussion was held on Friday the 13th of May during the regular Alchemix Friday Fireside chat. Co-founder Scoopy Trooples presented the vision for a tokenomics update and sought feedback from the community. The content has been summarized over at the Alchemix Medium.
On a tangent to the long-term ALCX tokenomics vision, AIP-49 was recently passed in a governance vote. This will redirect a significant portion of current ALCX emissions to the Alchemix treasury and approves the use of a subset of Tokemak TOKE rewards for the acquisition of additional strategic treasury assets.
Alchemix Quarterly Report
Alchemix sponsored the publication of its first Quarterly Report, written by community contributors Barree and IMIMIM. This activity emerged out of the Alchemix Stats website that was recently established and was sponsored by Alchemix. The Quarterly Report provides a consolidated overview of the activities and performance of Alchemix in the first quarter of 2022, and in the interests of raising transparency and awareness, will be an ongoing activity.
Introducing Elixir, the Alchemix Algorithmic Market Operator
The Alchemix core team has been hard at work on a major upgrade to the protocol. The Elixir AMO, inspired by the FRAX AMO model, will afford Alchemix tighter control of alAsset pegs, whilst also providing an additional income source for the protocol. Elixir launched on April 11 and has been incrementally ramping up in accordance with the proposal in AIP-39.
Elixir has already proven its utility as a peg defense mechanism as it worked to counteract downwards pressure on the alAsset pegs after the recent UST meltdown and associated flow-on volatility that occurred. This was done by withdrawing alUSD and alETH from Curve liquidity pools, which helped to stablilize the pools and ensure a tighter peg than would otherwise have been immediately achievable via the Transmuter. Ultimately this resulted in a relatively lower impact on the alUSD and alETH pegs - especially in the context of other assets such as USDT and stETH.
Alchemix Launches on Fantom
Alchemix has completed its first non-Ethereum deployment! On Thursday the 5th of May the Fantom instance of Alchemix was opened to all users wishing to take alUSD loans. Fantom offers significantly lower fees than Ethereum L1 and allows users to gain familiarity with the product with a much smaller amount of funds. If you’ve ever wanted to try Alchemix but have been priced out by Ethereum gas fees, now’s your chance!
code4rena Hosts Alchemix v2 Penetration Test
Alchemix allocated $125k in DAI to code4rena contestants who successfully identify vulnerabilities in Alchemix v2.
The focus of the contest is to try and find any logic errors or ways to drain funds from the protocol in a way that is advantageous for an attacker at the expense of users with funds invested in the protocol.
The competition ran from Thursday 5th May - Wednesday 18th May. Results have not yet been announced but an audit report will follow.
Tokemak C.o.R.E.3 Voting Concludes
The 3rd Tokemak Collateralization of Reactors Event (C.o.R.E.) was held between Monday the 2nd of May and Monday the 9th of May. As a significant TOKE holder with over 1.2 million votes, Alchemix held discussions with multiple projects to determine how it would vote.
Per AIP-48, the final decision was delegated to the core team and BizDev subDAO. Alchemix concluded by teaming up with an unnamed TOKE whale and voted for a reactor for ROOK. Due to a well-documented series of very unfortunate events involving the Terra ecosystem and its LUNA reactor, ROOK was eventually slotted into 5th place and scored a reactor! See the Tokemak C.o.R.E.3 Vote Allocation Update for a more detailed explanation.
Self-Repaying Debit Card?
MoverDAO got in touch with Alchemix back in April to discuss a potential integration, and so the self-repaying debit card was born! Alchemix alAssets and governance tokens can now be used to directly top up the balance of a MoverDAO debit card, lowering friction for users and adding yet another use case for Alchemix alAssets.
Alchemix v2 Supported By DeBank
DeBank is a portfolio tracking tool. They recently announced that they are tracking Alchemix v2 positions!
ICYMI
Catch up on all the updates since the last edition.
Governance
Tokemak C.o.R.E.3 Vote Allocation Update
AIP-49 Emissions Adjustments (Olympus Pro Bonds and TOKE Farming)
AIP-48 Tokemak C.o.R.E.3 Vote Allocation
AIP-47 Alpha Vaults
AIP-46 Liquid lockers for Alchemix Incentives
AIP-45 Strategic Fund for Acquiring Illiquid Assets
AIP-44 Seed alUSD/BEAN Curve Pool [Postponed]
AIP-43 Alchemix v2 alUSD Unguarded Launch Parameters
AIP-42 Fantom Launch Omnibus Proposal
AIP-41 Alchemix v2 alETH Unguarded Launch Configuration
AIP-40 Alchemix Core budget request
AIP-39 alUSD v1 Transmuter Migration to AMO and Boosted Yield
AIP-38 Gitcoin Grants Round 13
AIP-37 Stake half of owned POL to accumulate BENT
AIP-36 v2 Initial Guarded Launch and RFC for launch params
Real-World Alchemy
Community & Media
RandCorp has delivered a run-through of the Alchemix v2 UI.
Ceazor gives an overview of Alchemix v2 and dives into the new Elixir Algorithmic Market Operator.
RandCorp is back with a Self-Repaying House (...this sounds like an example of Real-World Alchemy).
Twitter user Pirateed provides a lengthy thread on how they are using Alchemix.
The Degen Dwarfs revealed in a tweet that they know a thing or two about alchemy. This NFT project has a community-governed treasury, and Degen Dwarfs holders voted to incorporate Alchemix as part of the core strategy. This included borrowing Alchemix alETH, and also staking tALCX. The follow-up tweet shows their full position.
Podcasts
Catch up on some additional media:
The Investing for Kids by Kids Podcast Episode 9: Self-Repaying Crypto Loans with Alchemix.
Mission: DeFi DeFi Lunch Episode 135: Alchemix Developer Foobar drops in.
Alchemix Ecosystem
The marketing team has created a summary of all of the protocols Alchemix has worked with, utilized, or been integrated with. We think it’s a great showing for the first year of Alchemix being live!
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.