Alchemix is a DeFi (Decentralized Finance) project built on the Ethereum blockchain that aims to revolutionize lending using cryptocurrencies. Its native token, ALX, serves as a medium of exchange and enables users to access decentralized credit by leveraging future earnings from yield-farming. The core idea is to unlock the collateral value of yield-farming tokens through borrowing against them at preferential rates.
Users can lock their existing crypto assets into a “Vault” contract on Alchemix, which then issues them with a time-lock ALX token representing their position. This allows them to access loans in the form of stablecoins or DAI, which are repaid automatically when the vault is liquidated in the future. As interest accrues daily, users can choose to pay off their debts early or let it accumulate for a more significant return on their initial investment. The platform has experienced rapid growth and gained popularity among DeFi enthusiasts.
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