TL;DR
- Alchemix launched its v3 version on the Base network, five years after introducing self-repaying loans in DeFi.
- The new version offers variable yield, fixed yield with four-week terms, and loans of up to 90% LTV with no interest or price-based liquidations.
- Base debuts its own native alAsset, alUSD.b, with uncapped Transmuters.
Alchemix, the protocol that in 2020 introduced the concept of self-repaying loans using the yield from deposited collateral, has just launched its v3 version on the Base network. The v3 deployment is significant for two reasons: the consolidation of a renewed architecture and the expansion into one of the fastest-growing ecosystems on Ethereum‘s layer 2.
The core proposition of Alchemix v3 is built around three pillars. The first is variable yield, which operates through the so-called Mix-Yield Token (MYT), a token that represents a share in a portfolio of diversified yield strategies, selected and rebalanced by the Alchemix DAO.
The user deposits collateral and the protocol distributes that capital across multiple pools with different risk levels, with no lock-ups and withdrawals available at any time. The second pillar is fixed yield: the user deposits alAssets into the Transmuter for a set term and redeems the underlying asset 1:1 at maturity. The rate is locked in from the moment of deposit.
The third is the loan: the protocol allows users to borrow up to 90% of their collateral in alUSD or alETH, with no interest, while the deposit continues generating yield.
Alchemix v3: Shorter Terms, Greater Speed
The deployment on Base is not an identical replica of what is available on other networks. Transmuters operate with four-week terms, the shortest period the protocol has offered to date, which accelerates redemption cycles and reduces the debt amortization time for borrowers. In addition, Base debuts alUSD.b, a native alAsset for the network, and the Transmuters have no capacity cap.
Every strategy that enters the Alchemix vaults is independently audited and classified by risk before being incorporated. More aggressive strategies have hard limits on the proportion they can occupy within the mix. The protocol also allows new strategies to be added through governance.
For users seeking immediate liquidity, the interface allows them to convert the alAsset directly to the underlying asset in a single transaction, with no need to manage the swap manually. Those who prefer to hold the alAsset can do so and later trade in the USDC/alUSD.b pair on Aerodrome. The protocol warns that alAssets may trade slightly below peg due to the redemption mechanics.
