Alchemix (ALCX) Investment Research Report: Innovative decentralized over-collateralized lending platform

1. Project Overview
   Alchemix (ALCX) has been listed on HIBT on May 20. Alchemix is a decentralized over-collateralized lending platform dedicated to creating income-backed synthetic tokens. Users can instantly access future earnings by locking collateral such as DAI or ETH in the Alchemix system. The platform allows users to stake their assets and release 50% of the value of the pledged assets as liquidity. Alchemix invests these pledged assets into Yearn Finance to earn income, and uses the income to automatically repay users' borrowings. This lending method based on income rather than debt eliminates the need for users to actively repay, and greatly improves the utilization rate of funds. ALCX is currently open for trading on HIBT.

2. Token information
   Circulation market value: $52,626,312.634
   Fully diluted market cap: $72,439,161
   Circulation: 2,234,060.808 ALCX
   Total supply: 2,912,673.299 ALCX
   Total funding raised: $8 million

3. Key events
   2021-03-14: Alchemix completes $4.9 million in financing.
   2021-03-18: Alchemix completed $3.1 million in strategic financing.
   2021-06-16: Alchemix suffers a hacker attack that costs $6.5 million.

4. Highlights of the Agreement
   Instant liquidity: Users can pledge assets and release 50% of the value of the pledged assets, solving liquidity needs.
   No forced liquidation required: The platform does not have a forced liquidation mechanism, which reduces the risk of spiral liquidation in the market.
   Automatic repayment of income: Users' loans are automatically repaid through the income earned on Yearn through mortgage assets, which improves capital efficiency.
   Efficient use of funds: Release originally illiquid funds and greatly improve the utilization rate of DeFi funds.

5. Core functions
   Loans and Earnings: Users can deposit DAI and ETH into the Alchemix vault and receive 50% of alUSD or alETH borrowing. The platform invests mortgage assets into Yearn Finance to obtain income, 90% of which is used to repay users' borrowings, and 10% is deposited into the treasury.

alUSD to DAI: Alchemix-minted alUSD maintains a stable 1:1 peg to DAI. Transmuter collects the proceeds from the Yearn vault to ensure that users can transfer alUSD back to DAI and maintain a stable value.

Curve Trading: Users can exchange alUSD for other stablecoins such as DAI, USDT, and USDC on Curve, adding liquidity options.

Stake alUSD to earn ALCX: Users can stake alUSD to earn ALCX and gain higher voting rights. ALCX is Alchemix’s governance token, which allows holders to participate in protocol governance decisions.

1. Token Economy
   Token name: ALCX
   Total supply: unlimited
   Purpose: Alchemix DAO governance voting rights, liquidity mining
   Distribution model: Gradually reduce the issuance amount within three years, maintain a fixed issuance amount (2200 coins/week) after three years, with an annual inflation rate of approximately 4.5%
   The specific allocation is as follows:
   DAO pre-mining: DAO will receive 15% of pre-mined tokens after three years
   Bug bounty: DAO reserves an additional 5% of tokens for bug bounty
   Mining rewards: 80% of tokens are used for mining rewards in the staking pool and liquidity pool
   Development Team: Founders and development team will receive 20% of ALCX block rewards

2. Market performance and analysis
   Independent wallet addresses: From February to now, the number of independent wallet addresses has continued to grow, and the number of new wallet addresses has grown rapidly from October to November.
   ALCX Price: ALCX peaked at $1,950 between April and July, but has since declined and has seen lower price volatility recently, stabilizing around $239.
   ALCX supply: From February to now, the difference between ALCX supply and circulation has narrowed, indicating that most of the released ALCX is circulating in the market. The release of performance-neutral features partially explains the decline in coin prices.
   alUSD supply and lending volume: alUSD’s minting and lending volume are balanced. The lending volume has not increased significantly since August, showing that the platform’s recent lending volume is low.
   alETH supply: alETH grew rapidly in October as the platform supported ETH-collateralized alETH lending.

3. Summary
   Through the innovative over-collateralized lending model, Alchemix has greatly improved the utilization rate of DeFi funds, solved the pain point of users being unable to obtain Yearn income in advance, and eliminated the liquidation mechanism. Despite facing certain market challenges, such as token price volatility and slow growth in lending volume, Alchemix has demonstrated its unique value proposition and market potential. With support for more tokens, Alchemix is expected to achieve greater development and application in the DeFi field. Overall, Alchemix is an innovative and practical DeFi protocol with good development prospects.