Alchemix Finance is a future-yield-backed synthetic asset platform and community DAO. The Alchemix platform gives you advances on your yield farming via a synthetic token that represents a fungible claim on any underlying collateral in the Alchemix protocol.
Vaults are how users manage their yield advance positions. Users deposit DAI to mint alUSD, a synthetic stablecoin that tokenizes your future yield, up to 50% of the amount of DAI they have deposited (eg. if a user deposits 1000 DAI, they can generate up to 500 alUSD). Behind the scenes, DAI is then deployed by the Alchemix contract to earn yield in the Yearn yvDAI Vault. As yield is harvested from the yvDAI Vault, users will see their alUSD debt decrease, and if they wait long enough, it will be completely paid off by the Alchemix protocol. In other words, the loan pays itself off.
Alchemix's Transmuter also allows users to "transmute" alUSD back into DAI 1-to-1 in Alchemix. Alternatively, alUSD can be traded on decentralized markets such as Sushiswap or crv.finance.
The governance of Alchemix Finance is managed by a DAO with a liquid governance token, ALCX. The Alchemix DAO will focus on funding developing and maintaining Alchemix protocol as well as func projects that will help the Alchemix ecosystem grow, as well as the greater Ethereum community.
How to use Alchemix?
You can generate alUSD, transmute alUSD to DAI, and earn rewards using Alchemix.