In Arbitrum’s Twitter Spaces which took place on April 9, 2024, Ana from Arbitrum hosted Scoopy from Alchemix to discuss Alchemix’s innovative financial tools, community-driven growth, and more! Read our notes below to learn more.
Background
Anna (Host) – Community Manager at Arbitrum Foundation
Scoopy Trooples (Guest) – Co-Founder of Alchemix
Alchemix – a future-yield-backed synthetic asset protocol and community DAO
Alchemix: Innovations in Self-Repaying Loans and Their Real-World Applications
- Scoopy provides a brief introduction about himself, mentioning his roles at Alchemix, from front-end development to leadership, and now back to product design.
- Scoopy introduces Alchemix, describing it as a protocol that innovated the concept of self-repaying loans. He explains the technical process where a deposit is turned into a yield-bearing token, which then allows users to borrow against their deposits with a synthetic stablecoin, $alUSD. This mechanism ensures that the debt decreases over time as yield accrues, offering a continuous credit line that allows simultaneous saving and spending.
- Scoopy explains that people often use Alchemist for financing and purchasing real-life necessities. He shares examples of community members who have bought significant items like boats and cars or paid for life events such as childbirth and student loans through Alchemix loans.
- Scoopy highlights another common use case where users can loop the system to effectively double their APR by maximizing their borrowing capacity, redepositing, and repeating the process without the risk of liquidation, unlike other DeFi protocols.
- Scoopy highlights the low maintenance aspect of these financial tools, comparing them to traditional banking products that do not require daily oversight, which he sees as a benefit for users.
- Scoopy describes a strategic use case for those anticipating market peaks, where users can borrow against their Ethereum at high points, cash out, and still retain their investment to earn yield.
- Ana expresses admiration for the versatility of the tools and how they enhance financial accessibility for the community, asking if these user stories are known because they are shared in the community Discord.
- Scoopy confirms the active role of their Discord community in sharing personal success stories with financial tools, mentioning weekly informal chats where developers and community members discuss and share their experiences.
Alchemix’s Revenue Streams and Community Engagement
- Scoopy explains that Alchemix generates revenue in various ways. Firstly, through a yield harvest process where yield tokens, upon gaining value, trigger a harvest. This process separates the yield from the underlying token to repay debts and Alchemix collects a fee, specifically 10% of the harvested yield.
- Another revenue stream for Alchemix comes from its peg stability modules. They have two types: the Transmuter module allows for the direct redemption of deposits over time, influenced by debt repayments and yield harvests, which provides arbitrage opportunities and revenue.
- Scoopy also describes Alchemix’s use of Automated Market Operators (AMOs) borrowed from Frax. These AMOs maintain liquidity positions in pools like Curve, creating tradable environments for synthetic tokens. This setup not only facilitates trading but also generates rewards, thereby creating an additional revenue stream.
- Scoopy highlights that the Alchemix treasury holds assets that generate income for the DAO and support rewards for liquidity providers, sustaining Alchemix’s overall operations.
- Scoopy says that community calls occur every Friday at noon UTC on their Discord, explaining that it suits the Australian organizer’s schedule.
Team Evolution and Project Updates at Alchemix on Arbitrum
- Ana expresses enthusiasm about the growth and expansion of Scoopy’s team, noting the search for new talent and expressing interest in learning more about their future plans.
- Scoopy introduces the imminent launch of the Jones USDC vault on Arbitrum for Alchemix, detailing its benefits, including a self-repaying loan feature with a high yield. He also discusses upcoming updates to their governance and token systems, mentioning a final quality assurance audit before a planned midsummer launch. He hints at another exciting version of Alchemix under development, which he remains secretive about but believes will significantly appeal to a broad range of DeFi users.
- Ana expresses excitement about the recent Ethereum upgrade and the reduction in layer-2 fees, which she finds very exciting.
- Scoopy shares his enthusiasm for being on Arbitrum and their plans to launch version 3 later in the year.
- Scoopy recounts the challenges Alchemix faced last year, including problems with their bridging partner, MultiChain, and a hacking incident on Curve Finance, which disrupted their launch plans on Arbitrum.
- Ana acknowledges the difficulties and mentions the evolution of the ecosystem towards better security measures.
- Scoopy credits his team for their resilience through these adversities, which has enabled them to finally launch on Arbitrum.
Check out these important links
- Listen to the original audio
- Follow Anna on Twitter
- Follow Scoopy Trooples on Twitter
- Follow Alchemix on Twitter
- Follow Arbitrum Foundation on Twitter
Show Information
- Medium: Twitter (Audio)
- Show: Arbitrum Twitter Space
- Show Title: Arbitrum x Alchemix Labs
- Show Date: April 9, 2024