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 theyâve 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 tokenâs 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. Thereâs a credit card attached to the account, with a credit limit of 50% of the amount you have deposited. Thereâs 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 âautomagicallyâ.
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 âself-payingâ 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:
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 LPâs 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 LPâs.
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 Alchemixâs Certik audit here: https://alchemix.fi/a208baf6ca7e0d6b0116461f05e27cd9.pdf
Benefits for Bancor & Alchemix
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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 Bancorâs 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 Bancorâs best interest to give the wizards of Alchemix a place to park their precious ALCX and generate passive, protected yield with it.
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The whitelisting of ALCX would allow Bancor to tap into Alchemixâs very strong, passionate, and rapidly growing community. Alchemix is drawing the attention of some of the spaceâs 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.
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Alchemix has extremely interesting things in the works, for example, how theyâll 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 DAOâs currently are âboringâ and âdonât do enough to attract its participants to come, check in daily and interact with the DAO and continue submitting and voting on proposals.â - 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 platformâs 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.
