Proposal: Whitelist Alchemix (ALCX) + 250k Co-Invest

Proposal: Whitelist Alchemix (ALCX) + 250k Co-Invest

This proposal is expected to appear on Snapshot for voting on July 19th, 2021 at 12:00PM EST.

TL;DR

  • Whitelist ALCX
  • Liquidity-Volume Ratio is excellent at 42.7 L/V (See below for analytics)
  • 250,000 BNT Co-investment to incentivize liquidity from ALCX holders/stakers and beat the Sushi Swap pool on trade volume
  • Alchemix is a market-first with its self-paying loan product (alUSD). Alchemix has a very strong community, and only one DEX liquidity pool (Sushi Swap, ALCX/ETH) this is an ideal opportunity to open up a ALCX/BNT pool, with IL protection and in the near future depending on trade volume, activate LM rewards.
  • V1 audited by Certik, V2 is in the works for launch.

Project Site: https://alchemix.fi/

Contract Address: 0xdbdb4d16eda451d0503b854cf79d55697f90c8df

Token Security

ALCX is the governance token for the Alchemix protocol. Its supply increases when users claim new tokens they’ve earned by staking liquidity in the various pools above. The total supply will continue to increase over time, in line with the emissions schedule. The ALCX governance token’s distribution is carefully crafted to gradually reduce issuance over the course of three years, continuing with a long tail of fixed weekly emissions. See chart below for weekly emissions + supply curve. ALCX is not an elastic supply token or does not have a rebase mechanism.The ALCX contracts do not have permissions that grant administrators unrestricted mint/burn capabilities.

Project

Imagine a bank. You can deposit money, and the bank pays you 10-15% interest. There’s a credit card attached to the account, with a credit limit of 50% of the amount you have deposited. There’s no interest on the card. There are no monthly payments to make. Instead, the interest you earn on your balance pays off any debt you have, automatically, or “automagically”.

Alchemix is a new kind of DeFi/lending protocol built on Ethereum. It combines aspects of MakerDAO, Yearn, Curve, and Sushi in a novel way to create “self-paying” loans. It is built on Ethereum, and launched in late February of 2021. The Alchemist is the primary way users interact with Alchemix. This smart contract accepts DAI deposits from users and issues debt in alUSD. It also allows users to repay their outstanding loans, either with alUSD, DAI, or their existing collateral (DAI, and most recently ETH). There is no interest on the alUSD loan. There are no liquidations. Deposited DAI is put to work earning yield in the Yearn v2 DAI vault. The earned yield pays off your alUSD debt.

To read more about how Alchemix work and platform data, read here:

https://dyor.fi/alcx

Co-Investment reasoning

Currently, the only pool for ALCX is on Sushi Swap which is where the vast majority of ALCX trade volume comes from, and none of the LP’s have any protection against Impermanent Loss as Bancor can help provide. This opens the door to ~$60m of liquidity that is currently provided in ALCX tokens on Sushi Swap, and $107.3m in trade volume over the last 30 days alone, see chart below for liquidity + 30-day volume. With a co-investment of 250,000 BNT (~$737.5k of liquidity) we can become the only other competitor to the Sushi pool and even make our way towards becoming the preferred platform to trade ALCX & provide liquidity to earn trading fees in ALCX and have impermanent loss protection, which is not currently an option for ALCX LP’s.

Alchemix Market Data

Alchemix Price | $279.32

Price Change 24h | $-15.46 (-5.24%)

*24h Low / 24h High | $276.32 / $297.34 *

*Trading Volume 24h | $2,462,549.54 *

*Volume / Market Cap | 0.03108 *

TVL | $827,861,050

Market Cap/TVL Ratio | 0.09661

All Time High | $2,066.20 (-86.2%)

All Time Low | $255.02 (+11.6%)|

Community & Communication

Twitter: https://twitter.com/AlchemixFi?s=20

Discord: http://discord.com/invite/alchemix

Github: Alchemix · GitHub

Forum: Alchemix Governance

Official Docs: Alchemix Finance - Alchemix Finance

Y.at: https://xn--f7iw076m7xa.y.at

Security Audit

Inspect Alchemix’s Certik audit here: https://alchemix.fi/a208baf6ca7e0d6b0116461f05e27cd9.pdf

Benefits for Bancor & Alchemix

  • Giving ALCX stakers access to deeper liquidity via the Bancor Network will allow Bancor to tap into a unique protocol in the lending/borrowing niche that will allow its token holders (ALCX holders) to essentially hedge their productive asset from IL with Bancor’s Impermanent Loss protection mechanism. Many users interacting with the Alchemix platform are tapping into loans and utilizing them across the entire DeFi ecosystem. It would be in Bancor’s best interest to give the wizards of Alchemix a place to park their precious ALCX and generate passive, protected yield with it.

  • The whitelisting of ALCX would allow Bancor to tap into Alchemix’s very strong, passionate, and rapidly growing community. Alchemix is drawing the attention of some of the space’s largest players, whether it be lenders/borrowers, or non-crypto natives such as Mark Cuban, who is now publicly a fan of Alchemix for example. This would generate massive attention for both Bancor, and Alchemix. This pool would easily become the only other competitor to Sushi who is not offering what Bancor offers. Together, both platforms boast a massive ~$2.1 billion in TVL.

  • Alchemix has extremely interesting things in the works, for example, how they’ll be structuring their DAO, they plan to give token holders/DAO participants characters and a point system that is non-transferrable (outside of Alchemix, but they can delegate their points) which will allow/incentivize unique, consistent participation in the DAO, a co-founder of Alchemix mentions that DAO’s currently are “boring” and “don’t do enough to attract its participants to come, check in daily and interact with the DAO and continue submitting and voting on proposals.” - This is beneficial for Bancor because as token emissions of ALCX increase, and holders of the token increase, they will be looking for a place to generate yield with their tokens as the platform’s popularity grows. Bancor could become the one stop shop for ALCX holders that want to provide liquidity with their tokens. - This type of activity and attention from a founder is exactly the type of commitment to growth that we would want to work with, and not only would the communities grow fond of eachother, but both parties, Bancor & Alchemix, would mutually benefit from a platform exposure perspective.

Proposal created by @_krris, @tenzents, @patfitzgerald01

Thank you for your consideration and time.

8 Likes

Do we know if this proposal will have support via the Alchemix social media channels? Some folks will not vote for a whitelisting proposal unless that happens.

Proposal looks good to me otherwise, although the current incentivizes that Alchemix provides to Sushiswap LPs will probably make it hard to move that liquidity over.

image

4 Likes

Great question, one of the co-founders of Alchemix is extremely supportive of the proposal, community has been nothing but warm in welcoming and supporting the whitelisting. And you’re right, ALCX does have a good incentive at the moment but my guess is that LP’s are getting rekt on IL, the IL protection could draw many longer term holders to Bancor, ALCX is already down -86% from ATH, my bet is that holders now are going to stick around and want to protect their assets. If DeFi runs again, I wouldn’t be surprised if liquidity flows to Sushi as well, but during this cool off period, Bancor stands to rake in many ALCX LP’s by protecting them from the IL they would face otherwise.

Picture below of a community member voicing support.

Link to my tweet here: https://twitter.com/_krris/status/1416055943507415044?s=20

3 Likes

don’t see why alchemix wouldn’t tweet it out, their team is aware of this prop and they’re into it, also ALCX IL :

4 Likes

Hi, ALCX staker here, and just popping to to show my support, I would definitely be interested in IL protected LPing. Currently I split my bags into single staking and alETH staking solely b/c of the IL I experienced thus far in the LP.

7 Likes

Hey, greatly appreciate this support and this proposal really came to light as it was realized that currently there is no way for ALCX stakers to make their asset productive by becoming an LP. If you look above at @tenzent’s post on IL suffered by ALCX LP’s so far, especially on the 30 day timeframe, it is significant and discouraging. Excited to give ALCX holders the opportunity to protect their positions from IL with single-sided liquidity provision if this proposal passes. Scoopy Trooples (for those that don’t know, Alchemix Co-Founder) has voiced support in the Alchemix discord & personal Twitter and Ethtechnocratic (Also Alchemix Co-Founder) has voiced his support for more markets on Twitter here. Glad to have you here Prayag!

4 Likes

This will be a fantastic opportunity to bring ALCX users to Bancor, and to introduce ALCX to Bancor users who may not be aware of the project.

6 Likes

I couldn’t agree more. Huge opportunity for both platforms to tap into each others first-to-market products and exceptional communities.

4 Likes

The link to this thread is currently pinned on Discord.

Definitely interested in having another option that Sushi to LP ALCX.

6 Likes

hi Bancorlords love the proposition and definitely will bring my bags over for IL protection. Great synergy could be build between the 2 protocols.

6 Likes

Thank you for this proposal @ThePerpetual .

Appreciate the Alchemix community coming to the forum to show their support. The Alchemix project is on its path to become a DeFi blue chip and having an ALCX BNT pool will definitely benefit Bancor.

The 250k BNT co-investment sounds reasonable. ALCX holders have definitely felt the IL in the ALCX/WETH pool on Sushiswap:


(taken from WETH-ALCX | SushiSwap Analytics)

Volume is significantly down in the past 24hours, the pool has a utilization rate of 1.21% on SushiSwap.

Looks like the Alchemix team will support the proposal and share it on their social media profiles.

Will vote FOR, great proposal.

6 Likes

Ahh yes, been very active in the Alchemix discord answering questions from their community and have gotten nothing but great support from them. If this passes, I see Bancor becoming the preferred option for LP’s.

5 Likes

Hey, I believe this to be a great idea! In a free market society competition is vital, also giving other choice of where they want to park their $$. Having protection against IL would be a strong tool for continual growth with more peace of mind. I don’t know about everyone else but I like my sleep! I do hope this gains traction as a ALCX holder I do think this will benefit many, as mentioned above in this slow down lately would be a great time to implement and further grow the community.

7 Likes

Much appreciated Marcus! Indeed this cool off period is the best of times to bridge communities and build together.

3 Likes

@tfns Huge to see the Alchemix community come and support this proposal, and that IL really hurts. Posted this to their Discord and chatting with some of the community about it now, crucial that this data surfaces. Also, found out that the single sided staking of ALCX on Alchemix.fi will end when their V2 comes out, which will be soon. Making Bancor the only option to stake ALCX single sided, if this passes!
Current ALCX rewards

Current ALCX single sided staking ^ once this ends, ALCX stakers will need a home, Bancor can be that home.

5 Likes

Great point to bring up. Super happy to see the Wizards come down to voice their support. I will see you at the polls gentlemen.

5 Likes

Just saw the following tweet

from the official alchemix twitter handle. Looks good to me.

6 Likes

Nothing but love from their community! Great tweet. It looks like they are excited for this pool as well, assuming vote passes. Looking forward to voting this week :mage:

4 Likes

Exactly time to buidl and set up the right alliances for the future. Well said. Important to point out the the bear as execellent qualities too😊

5 Likes

Time to go down the rabbit hole and dig into bancor.

5 Likes