The Alchemix platform is a dedicated Defi lending system that distinguishes itself from the other systems in the space as it offers users flexible modes of obtaining loans and provides a mechanism where those loans are related automatically over time. Alchemix was developed with a design protocol that completely automates the loan repayment process of crypto-backed loans in the industry to ensure that all loans taken on the platform are sufficiently paid back for a specified period. A process that also simultaneously prevents liquidation from occurring in its system. While there are a plethora of Defi lending protocols backed by stablecoins, most of these systems impose the management of the loan, thus keeping it collateralized. The Alchemix system on the other hand is after automating this process completed for the participants of its system looking to get loans backed by stablecoins.
The procedural function used by the Alchemix system for loan repayment follows a distinct path. On the system, users deposit DAI tokens, a stablecoin, and in turn, they earn Alchemix as collateral which will then be used to mint alUSD, a synthetic protocol that converts the future yield of the users into tokens. The deposited tokens are then used in the generation of yields in Yearn. finance, yields that are then used in the repayment of the loan. The synthetic assets in the platform like alUSD can also be converted back to DAI and then exchanged for fiat currencies directly, or they can be used directly in the generation of more yield in the staking/liquidity pools of the Alchemix platform.
Who are the Founders of Alchemix (ALCX)?
Alchemix was founded by Tommy Paul, a renowned professional and high achiever in both the entertainment industry and the blockchain technology sector.
Paul’s journey into the world of blockchain and Defi technology was largely unexpected. Apart from not studying anything related to computing, he started his career as a bartender. After obtaining education from Lobster Inc, he became a beverage director at Zoni Cantina. Later he moved to the Papillon Bistro & Bar in New York City and served as its head bartender and beverage director. Only a year after he was working in New York City, he established the Alchemix platform and now serves as its CEO.
What is Alchemix (ALCX) used for?
The Alchemix platform essentially has its main use case in its ability to allow the creation of synthetic tokens, all of which will stand as future yields of a deposit. The system gives an avenue where they can retrieve a tokenized value that is next to an instant tokenized value against the available temporary stablecoin deposits. The protocol’s operation on the deposits produces a new Defi primitive system that offers a variety of advanced use cases and a collection of tools that can be used by developers.
In addition to this, the Alchemix system’s dedicated token is also a tool of value in the open market that can earn its users’ profits when swapped with other types of cryptocurrency.
What Is the Unique Point of Alchemix (ALCX)?
The operating protocol of the Alchemix system on its own is significantly different from most of the platforms performing the same service. The system relies on a process whereby participants are expected to contribute to the staking and liquidity pools available on the network to facilitate and empower the lending mechanism used by the system. These pools also open users to the possibility of earning additional yield on their synthetic tokens such as alUSD. To reward participants that have participated in the liquidity provision by staking in the pools, these users earn an amount proportional to their stakes in the form of ALCX tokens.
Additionally, even though the Alchemix system can be considered to be relatively new, the system is equipped with fast adding compatibility which allows it to work in conjunction with other cryptocurrencies and allows them to be used as collateral. While at this, the platform also provides users with new customization models and structures for the crypto-based loans they’re obtaining.
According to the team behind its creation, the platform aims at the implementation of new decentralized applications which will provide an expansion on its ecosystem.
How many Alchemix (ALCX) coins are in circulation?
ALCX is the native cryptocurrency of the system and is used for its governance via a decentralized anonymous organization system. Participants on the network who hold ALCX tokens are automatically given voting rights as decided by the system to have a hand in the protocol parameters used and the development of new features of funding. The token also lets them get a say on the DAO structure itself. The DAO system used by the platform earns 10% of the Year. Finance profits and in turn pay the platform’s developers with these funds, while also covering the structure costs and fees used for award development grants.
The maximum supply of ALCX tokens available is pegged at 1,562,945 ALCX coins, of that amount, the tokens have a circulating supply of 960,356 ALCX coins.
Is the Alchemix (ALCX) Network secured?
Like most of the tokens available now which are based on smart contracts, the Alchemix is an ERC-20 based token. As such, the system is secured by the same protocol as the Ethereum blockchain.
The Ethereum Blockchain is secured by a dedicated proof of stake mechanism. This consensus algorithm suits the Alchemix system because it already requires staking and rewards users with stakes. Now, these users will be tasked with an additional duty of validating transactions before they are added to the blockchain. This process, as used by the Ethereum blockchain, prevents attacks on the system from within as the tokens of the users are the ones at stake.
How do I buy Alchemix (ALCX)?
Over the years, more people have grown to see the problem that exists in the fiat industry, especially with its loan system. While most crypto lending platforms have adopted similar principles to the fiat banking system, the Alchemix platform on the other hand provides an avenue where loans obtained are paid back within themselves. This eliminates the pressure on the borrowers that is usually associated with obtaining loans. ALCX tokens are now largely available on most top-rated exchanges and can be bought through the following steps.
- Interested parties are required to create an account with the crypto trading platform.
- Then, they are required to transfer a specific amount of fiat money to the crypto account.
- After they will have to wait till the transaction has been approved, they can now buy their ALCX tokens.
Which Cryptocurrency Wallet Supports Alchemix (ALCX)?
The PTPWallet platform supports many cryptocurrencies simultaneously such as Alchemix (ALCX). Because of its vast use case has grown to become one of the most used platforms as it serves as an exchange and an engine to discover other cryptocurrencies. Additionally, users can easily use PTPWallet as their Alchemix wallet because it offers a simple and interactive interface making it easy for people to navigate its system.