Alchemix

Alchemix Finance is a future-yield-backed synthetic asset protocol and community DAO. The protocol gives you advances on various yield farming strategies via a synthetic token. The token represents a fungible claim on any underlying collateral in the Alchemix protocol, where the claim has to be made by a depositor of that collateral. The DAO will focus on funding projects that will help the Alchemix ecosystem grow, as well as the greater Ethereum community.

What is it?

Imagine a bank. You deposit money, and the bank pays you interest. There's a credit card attached to the account, with a limit of 50% of the amount you have deposited. In order to access this debt, you sacrifice a small percentage of its value upfront. There's no interest on the debt. There are no monthly payments to make. Instead, the interest you earn on your balance pays off any debt you have, automatically. Alchemix offers this product, in DeFi form: Alchemix is Self-Paying, Interest-Free, Non-Liquidating Loans.

How do I use it?

1. Deposit: Select a yield strategy and then add collateral (Stablecoins or ETH) to that strategy.
2. Borrow: borrow up to the acceptable collateralization ratio and recieve a synthetic alAsset representing future yield equivalent to the borrowed amount.
3. Convert: Swap the alAsset to any other token via a DEX or DEX Aggregator (Check the current alAsset price before doing so). You can also use alAssets directly on some DeFi protocols.
4. Spend: Do whatever you like with the loan (buy more crypto, take a vacation, cash out to savings, and many more options!)
5. Wait: Your chosen yield strategy will go to work earning interest on the full initial deposit - the harvested yield will pay down the debt automatically over time.
6. Withdraw, Borrow, or Self-Liquidate: At any time, users can withdraw principal or borrow more, up to the collateralization ratio, or self-liquidate to gain their collateral minus any outstanding debt. Users may also repay their loans if they wish. Alchemix always views 1 alAsset as equivalent to 1 underlying asset (ie, 1 alUSD = 1 DAI) for the purpose of borrowing, self-liquidating, and repaying loans.