# Alchemix Documentation — Full Reference
> This file contains the Alchemix V3 user and integrator documentation concatenated for AI consumption.
> Developer and governance sections are still being expanded and are indexed at https://docs.alchemix.fi/llms.txt.
> Source: https://docs.alchemix.fi
> Generated: 2026-07-02
---
# User Documentation
---
## Introduction
Source: https://docs.alchemix.fi/user
Alchemix is a protocol for saving, borrowing, and earning fixed-yield returns. Building on the self-repaying loan it introduced in 2021, v3 combines these three functions in one app. The protocol currently secures [live figure] in total value locked, with ALCX priced at [live figure] and alETH trading at [live figure].
- **Earn Competitive Risk-Adjusted Yield:** Deposit ETH or USDC and earn yield across a mix of strategies chosen and rebalanced by the DAO. No lock-ups, withdraw at any time.
- **Borrow up to 90%, Interest Free:** Borrow against your deposit while it keeps earning yield. Scheduled redemptions chip away at your debt over time. No interest, no price-based liquidations.
- **Unlock Fixed Yield Opportunities:** Deposit alETH or alUSD into the Transmuter and redeem the underlying asset after a fixed term. The rate is locked when you deposit.
[Explore the Quick Start guide →](https://docs.alchemix.fi/user/quick-start)
### 1. Grow savings with vaults
Deposit ETH or USDC into a vault to receive Mix-Yield Tokens (MYT). Each MYT represents a share of a portfolio of yield strategies chosen by the Alchemix DAO and is rebalanced over time. Yield accrues continuously and is reflected in the redemption value of MYT.
- **Asset types:** ETH, USDC
- **Strategy:** Diversified, tuned for risk-adjusted returns
- **Lock-up:** None, withdraw at any time
[Learn more about Vaults and MYT →](https://docs.alchemix.fi/user/concepts/myt-and-yield)
### 2. Access credit with self-repaying loans
Need liquidity but don’t want to sell your assets? Borrow Alchemix’s synthetic counterpart of your deposit and let your future yield repay the balance.
- **Borrowable asset:** alETH or alUSD
- **Maximum LTV:** 90% of collateral
- **Liquidations:** Strategy loss only, not price swings
- **Early repayment:** Optional at any time
[Learn more about Self-Repaying Loans →](https://docs.alchemix.fi/user/concepts/self-repaying-loans)
### 3. Lock in fixed returns with the Transmuter
Deposit alETH or alUSD and, after a fixed term, redeem an equivalent amount of the underlying asset. The rate is locked at deposit. If alUSD trades at 0.98 USDC with a three-month term, the annualized return is roughly 8%.
- **Deposit asset:** alETH or alUSD
- **Returns:** Fixed rate, locked at time of deposit
- **Peg stability:** Arbitrage keeps alAssets near parity
[Learn more about the Transmuter and Redemptions →](https://docs.alchemix.fi/user/concepts/transmuter)
### Next steps
1. Visit [https://alchemix.fi/](https://alchemix.fi).
2. Read the [FAQ →](https://docs.alchemix.fi/user/faq).
3. Follow along with our [Tutorials →](https://docs.alchemix.fi/user/tutorials/use-passive-myt).
4. Learn about the [Mix-Yield Token →](https://docs.alchemix.fi/user/concepts/myt-and-yield).
:::info v3 vs v2
This documentation covers **Alchemix v3**. If you are looking for information regarding legacy v2 contracts, please visit the [Legacy Docs](https://v2-docs.alchemix.fi/).
:::
---
## Links & Resources
Source: https://docs.alchemix.fi/user/links
This documentation is the most complete learning resource, but it may lag behind day-to-day activity. Use the channels below to stay current and connect with the community.
| Resource | Purpose |
| ------------------------------------------------------------ | --------------------------------------------------------- |
| [**dApp**](https://alchemix.fi) | The Alchemix dApp: Vaults, [Mixed Yield](https://alchemix.fi/mixed-yield) and [Fixed Yield](https://alchemix.fi/fixed-yield). |
| [**X (Twitter)**](https://x.com/AlchemixFi) | Official announcements and real-time updates. |
| [**Discord**](https://discord.gg/alchemix) | Community chat, support and contributor coordination. |
| [**Newsletter**](https://alchemixfi.substack.com/) | Roundup of releases, governance and ecosystem news. |
| [**Snapshot**](https://snapshot.org/#/alchemixstakers.eth) | Governance voting hub. |
| [**Github**](https://github.com/alchemix-finance) | Parent Alchemix Github account. |
| [**Developer Docs**](/dev) | All development resources for the Alchemix ecosystem. |
| Dune Dashboard | Live protocol metrics and analytics. Coming soon. |
| Gov Dashboard | Live protocol parameters. Coming soon. |
| [**ALCX Token**](/governance/onchain/alcx-token) | Token utility, emissions schedule, distribution and contract addresses. |
| [**Financial Reports**](financial-reports) | Quarterly financial reports, 2022–present. |
| [**Independent Research**](independent-research) | Third-party analyst coverage and deep dives on Alchemix v3. |
| [**Marketing Material**](marketing-material) | Logos and brand assets for use in marketing and community projects. |
---
## FAQ
Source: https://docs.alchemix.fi/user/faq
Use this page as a quick lookup for the questions we hear most often. It explains core ideas, such as borrowing limits, earmarked debt, the redemption rate, and how they show up in the interface.
If you need deeper detail, each answer links back to the full guide or tutorial that covers the topic in depth.
**Q: What is an alAsset?**
An alAsset is the synthetic token you borrow from Alchemix.
- alUSD mirrors USDC.
- alETH mirrors ETH.
They track their underlying asset but can trade below, or in rare circumstances above, 1:1 on the open market.
[Learn more about alAssets →](https://docs.alchemix.fi/user/faq/concepts/alAssets)
**Q: How much can I borrow?**
You can borrow up to 90% loan-to-value (LTV) of your deposited collateral. The exact limit is shown on each vault page.
[Learn more about LTV →](https://docs.alchemix.fi/user/faq/concepts/alAssets#ltv-sensitivity)
**Q: How does my loan repay itself?**
Your MYT collateral grows in value as its underlying strategies earn yield. When a redemption occurs, the Transmuter swaps a portion of that collateral, equal in value to the queued alAssets earmarked for your position, and applies the proceeds to your outstanding debt.
Each position has a maturity date, but redemptions can happen earlier or later depending on user activity. Until a redemption takes place, your full collateral balance continues compounding, and your debt remains unchanged unless you choose to borrow more.
[Learn more about Self-Repaying Loans →](https://docs.alchemix.fi/user/faq/concepts/self-repaying-loans)
**Q: What is earmarked debt?**
When a redemption cycle begins, the protocol gradually reserves (earmarks) a portion of each open loan based on the borrower’s share of total system debt. This earmarked amount is fixed once assigned for the remainder of the cycle and continues earning yield until settlement. If you choose to repay an earmarked slice early, repayment must be made in MYT.
[Learn more about redemptions →](https://docs.alchemix.fi/user/faq/concepts/redemption-rate)
**Q: Is it possible to exit or repay my loan before it is fully repaid?**
Yes. Alchemix allows you to exit or repay your loan at any time, even before it is fully self-repaid. We offer a self-liquidation feature that can only be triggered by the depositor that enables you to repay outstanding loans by using a portion of your deposited collateral. Once the loan is repaid, you can withdraw the remaining collateral. There are no lock-in periods or penalties at all with Alchemix.
**Q: What is the redemption rate?**
Redemptions in Alchemix v3 deleverage your position by using collateral to repay debt without the cost of traditional interest rates. The Redemption Rate projects how quickly this occurs by comparing annualized Transmuter volume against total system debt, with a higher rate indicating faster loan clearance.
A key benefit is Temporal Leverage, where earmarked collateral continues earning yield until the exact moment of settlement, maximizing total returns during the waiting period.
[Learn more about the redemption rate →](https://docs.alchemix.fi/user/faq/concepts/redemption-rate)
**Q: Can I repay early?**
Yes. Open the Repay tab in a vault and choose:
- alAsset to clear normal debt.
- MYT to clear earmarked or normal debt.
- ETH or USDC for convenience.
**Q: What happens if I borrow alAssets and immediately deposit them in the Transmuter?**
In this case, you interact with both sides of the system at once:
- **Borrower side** – You mint alAssets and may “pay” a market discount, assuming the alAsset is below 1:1 at the time.
- **Redeemer side** – You lock those alAssets for a fixed return and secure their full value.
Most of the time, the cost and reward cancel out, so the net effect is similar to leaving your collateral idle - if not net-negative due to fees. It can make sense when:
- The term is very short and you prefer a sure 1:1 rate on your loan compared to selling on a DEX, or;
- Liquidity is thin, and the market discount is unusually deep.
[Learn more about the transmuter and market discounts →](https://docs.alchemix.fi/user/faq/concepts/transmuter)
**Q: Can I withdraw from the Transmuter early?**
Yes, but an early exit applies a penalty that reduces your return. The pop-up shows the exact amount before you confirm.
[Learn more about early exits →](https://docs.alchemix.fi/user/faq/tutorials/redeem-alassets#manage-or-close-a-position)
**Q: What fees does Alchemix charge?**
Alchemix V3 utilizes four primary fee parameters:
- Borrower Redemption Fee: 0.25% (applied when collateral is used to reconcile your earmarked debt, whether through a Transmuter redemption or a force-repay).
- MYT Yield Fee: 15.00% (a performance fee on gross yield generated by strategies).
- Early Transmutation Fee: 1.00% (applied if you withdraw assets from the Transmuter queue early).
- Transmuter Fee: 0.00% (charged when claiming transmuted assets).
[Learn more about fees →](https://docs.alchemix.fi/user/faq/concepts/fees)
**Q: What if a vault strategy loses funds?**
Loss handling is different for each participant:
- **Vault users** – If the MYT backing your collateral drops in value, the protocol can liquidate positions that exceed the liquidation LTV.
- **Transmuter users** – Redemptions continue at 1:1 unless the loss results in bad debt. In that case, you can claim a partial redemption immediately or wait until the bad debt is cleared for full value.
**Q: Do I ever lose yield if a portion of my debt is earmarked?**
Never. Earmarked collateral continues to earn you yield until the moment it is redeemed. This delayed settlement creates the temporal leverage, extra yield you would not receive in most other lending platforms.
[Learn more about Temporal Leverage →](https://docs.alchemix.fi/user/faq/concepts/redemption-rate#temporal-leverage)
**Q: Who controls the system?**
Alchemix V3 is composed of several key counterparties. MYT Depositors, Borrowers, Liquidity Providers, and Transmuter Users. Each of these manage specific risks including strategy losses, liquidation at high LTVs, and potential redemption fees. Overall, these systems are governed by the Alchemix DAO.
The system is secured by cross-chain bridge controls using multiple decentralized verification networks (DVNs) and utilizes fundamental oracles to insulate users from market price volatility.
[Learn more about security and permissions →](https://docs.alchemix.fi/user/faq/safety/risk-considerations)
**Q: Is Alchemix audited?**
Yes. Alchemix V3 underwent its most comprehensive audit suite to date (Spearbit/Cantina, Nethermind, yAudit, Immunefi, and alpeh_v), alongside an extensive in-house security suite. A bug bounty of up to $300,000 is active on Immunefi, and the protocol is monitored in real time by Hypernative, which can auto-pause it if suspicious activity is detected.
[Audit reports, bounty details, and security practices →](https://docs.alchemix.fi/user/faq/safety/security)
**Q: Where can I see live data?**
Current redemption rate, queued alAssets, vault APRs, and historic term stats are displayed directly in the main dashboard and the Fixed Yield page.
[View live data →](https://alchemix.fi/)
---
## Financial Reports
Source: https://docs.alchemix.fi/user/financial-reports
Each quarter, Alchemix publishes a financial report covering the full state of the protocol. Reports include treasury contents and revenue, protocol metrics across all supported networks, alAsset liquidity and peg data, yield harvest activity, deposit and user statistics, ALCX governance token metrics, grant activity, and governance summaries, with an archive available from Q1 2022.
### 2026
### 2025
### 2024
### 2023
### 2022
---
## Glossary
Source: https://docs.alchemix.fi/user/glossary
Quick definitions for key terms used throughout the Alchemix V3 documentation. Each entry links to the full concept page where applicable.
### alAsset {#alasset}
A synthetic token minted by borrowing against collateral in Alchemix. alUSD mirrors USDC; alETH mirrors ETH. Inside the protocol, 1 alAsset always cancels 1 unit of debt regardless of its external market price.
### Alchemist {#alchemist}
The core smart contract that accepts MYT collateral, issues alAsset loans, and manages LTV enforcement, earmarking, and liquidation logic.
### Earmarked debt {#earmarked-debt}
A fixed slice of a borrower's outstanding loan that the protocol reserves during a redemption cycle. Earmarked collateral continues earning yield until the moment of settlement. Earmarked debt must be repaid with MYT rather than alAssets.
### Fundamental oracle {#fundamental-oracle}
A price feed that values a yield-bearing token by its underlying redemption value rather than its open-market trading price. Alchemix uses fundamental oracles for Conservative MYT strategies so that DEX price swings cannot trigger liquidations.
### alAsset oracle (Chronicle) {#chronicle-oracle}
A dedicated external price feed, provided by Chronicle Labs, for each alAsset (one per alUSD, alETH). Unlike the internal fundamental oracle (which values MYT collateral), these feeds let external protocols verifiably price alAssets so they can be used as collateral across DeFi.
### LTV (Loan-to-Value) {#ltv}
The ratio of outstanding debt to collateral value, expressed as a percentage. Alchemix allows borrowing up to 90% LTV. Liquidation is triggered at 95% LTV.
### Mix-Yield Token (MYT) {#myt}
An ERC-20 token representing a share of a diversified portfolio of yield strategies managed by the Alchemix DAO. MYT is the collateral accepted by the Alchemist. Its redemption value grows continuously as underlying strategies earn yield.
### Redemption rate {#redemption-rate}
An annualized measure of how quickly borrower debt is being paid down through Transmuter redemptions. A higher rate means faster deleveraging. Calculated as annualized Transmuter volume divided by total system debt.
### Self-repaying loan {#self-repaying-loan}
An Alchemix loan whose balance decreases over time without the borrower taking action, as vault yield and scheduled Transmuter redemptions service the debt. Interest rate is 0%; debt only moves downward unless the borrower mints more.
### Temporal leverage {#temporal-leverage}
The additional yield earned because earmarked collateral continues compounding from the moment debt is earmarked until the moment it is settled. This yield would not accrue in a system that converted collateral immediately at earmark time.
### Transmuter {#transmuter}
A contract that accepts alAsset deposits and, after a fixed term set by the DAO, redeems them 1:1 for an equivalent value of MYT. The Transmuter is the primary mechanism for alAsset supply contraction and peg maintenance.
---
## Independent Research
Source: https://docs.alchemix.fi/user/independent-research
Third-party deep dives and analyst coverage of Alchemix v3. These reports are not produced by Alchemix. They are collected here as additional reading for users who want an outside perspective on the protocol.
### Alea Research
#### Deep Dive: Alchemix v3
May 4, 2026 · 23 min read
A technical walkthrough of v3 architecture, covering the Alchemist vault, MYT, alAssets, and Transmuter as four interlocking layers. Includes tokenomics, the planned governance transition to Aragon OSX with vqALCX, audit history, and the protocol's risk-and-safeguards model.
Read on alearesearch.io →
---
#### Perspectives: Alchemix v3
March 12, 2026 · 16 min read
A market-context piece on why v3 matters: the limitations of v1 and v2, what changed (90% LTV, fixed-duration redemptions, MYT, temporal advantage), and how v3 fits alongside other DeFi fixed-income primitives. Ends with a value-accrual flywheel and a risk overview.
Read on alearesearch.io →
---
## Marketing Material
Source: https://docs.alchemix.fi/user/marketing-material
Our logos are for use in promotional and marketing materials. Please consult the brand book before use, and reach out to **@metalface** in the [official Discord](https://discord.gg/alchemix) with any questions.
### Alchemix Logos
Copper 
PNG
SVG
White 
PNG
SVG
Black 
PNG
SVG
### Brand Mark
The standalone Alchemix mark, for avatars, favicons, and tight spaces where the full logo doesn't fit.
Standard 
SVG
Thick 
SVG
### alETH Logos
alETH 
PNG
SVG
alETH Backed 
PNG
SVG
### alUSD Logos
alUSD 
PNG
SVG
alUSD Backed 
PNG
SVG
### Brand Colors
Copper #F5C09A
245 192 154
Navy #05344E
5 52 78
Coal #181819
24 24 25
Feather #D4D4D4
212 212 212
### Typography
Beaufort Pro Aa Bb Cc Dd · 0123456789 Display & headings
Montserrat Aa Bb Cc Dd · 0123456789 Body & UI
---
## Quick Start
Source: https://docs.alchemix.fi/user/quick-start
This page walks through the core borrowing path. A small deposit, a modest borrow, and what to expect as redemptions reduce your balance over time.
- Deposit ETH or USDC to mint MYT and start earning yield.
- Borrow at about 20% LTV to mint alAssets, then swap them to USDC if you want working capital. (The protocol allows up to **90%** LTV; this guide uses ~20% as a conservative starting point.)
- Watch scheduled redemptions reduce your debt while your full collateral keeps earning until maturity.
If you already know what you're looking for, jump straight to the relevant tutorial:
- [Earn yield with Mixed Yield →](https://docs.alchemix.fi/user/quick-start/tutorials/use-passive-myt)
- [Buy alAssets below peg for fixed returns →](https://docs.alchemix.fi/user/quick-start/tutorials/redeem-alassets)
### Prerequisites
Connect a wallet on the target chain and keep a small balance of the native gas token. Hold ETH or USDC for your deposit.
### Step 1 – Deposit to the MYT
Open **Vaults**, choose a Risk Adjusted Mix vault for ETH or USDC on your chain, and deposit. The vault mints MYT at a rate equivalent to your underlying assets. From here on out, each MYT represents a growing claim on the underlying as strategies earn.
### Step 2 – Borrow at 20% LTV
:::tip Check the alAsset market price first
alAssets can trade slightly below 1:1 on the open market. If alUSD trades at 0.99 USDC, selling 200 alUSD yields ~198 USDC, which is a ~$2 upfront cost relative to your 200 alUSD of recorded debt. The dApp shows the current price and estimated proceeds before you confirm.
:::
On the same vault page stay on Deposit/Borrow. Enter a borrow near 20% LTV, then mint [alETH or alUSD](https://docs.alchemix.fi/user/quick-start/concepts/alAssets), respectively.
If you need spendable funds, swap the alAsset to USDC. The borrower fee shown in the UI will apply when redemptions occur.
:::warning Before you confirm
- **Strategy mix:** open the vault details to see the current MYT weight and ceilings for higher-risk buckets.
- **Health bar:** note the Liquidation LTV marker. Keep a wide buffer to reduce the need for active position management.
:::
### Step 3 – Let it run
The timeline below shows how this plays out in practice. Redemptions outpace yield in the first quarter, then yield overtakes. Debt drops 57% in a year while collateral finishes above its starting value. No repayments, no interest, no action required.
*(An interactive PositionTimeline illustration appears here in the web version.)*
### Next steps
Explore the concepts behind what you just did:
- [Mix-Yield Token →](https://docs.alchemix.fi/user/quick-start/concepts/myt-and-yield)
- [Redemption Rate →](https://docs.alchemix.fi/user/quick-start/concepts/redemption-rate)
- [Liquidations →](https://docs.alchemix.fi/user/quick-start/concepts/liquidations)
- [The Transmuter →](https://docs.alchemix.fi/user/quick-start/concepts/transmuter)
Or go deeper with the step-by-step tutorials:
- [Take a Loan →](https://docs.alchemix.fi/user/quick-start/tutorials/borrowing-in-alchemix)
- [Repay Loans →](https://docs.alchemix.fi/user/quick-start/tutorials/repay-loan)
- [Redeem alAssets →](https://docs.alchemix.fi/user/quick-start/tutorials/redeem-alassets)
---
## V3 Migration
Source: https://docs.alchemix.fi/user/v3-migration
:::tip Migration complete
The V2 to V3 migration completed in April 2026. All positions are live on V3 and the new UI is up. For reference, the migration covered **3 chains**, used **7 signers** across roughly **20,000 transactions**, and moved **6,413 positions**, about **$4.87M** in stablecoins and **12,107 ETH**. No user action is required. This page is retained as a record of how the migration worked.
:::
Alchemix V3 runs on a different architecture than V2. The migration moved all existing positions into the new system, consolidating liquidity, activating the 90% LTV framework, and launching the Mix-Yield Token (MYT).
*(An interactive MigrationOverview illustration appears here in the web version.)*
### The great V2 to V3 migration
Alchemix V2 and V3 operate on fundamentally different architectural logic. To prevent debt cannibalization and ensure all users benefit from the upgraded Transmuter and MYT vaults, V2 positions were migrated into the V3 ecosystem.
#### Migration mechanics
The migration was conducted via a coordinated protocol upgrade (governance-approved under AIP-123). The process followed a strict operational sequence:
1. **Freeze:** V2 smart contracts were paused, disabling user-facing functions to lock the state of all positions.
2. **Snapshot:** A precise record of every user position (collateral and debt) was captured.
3. **Asset Conversion:** Collateral was securely moved and converted into the primary underlying assets (USDC and wETH).
4. **Positions:** The Alchemix multisig recreated every user position within the V3 architecture. Users were credited with the exact fundamental deposit value and debt recorded during the snapshot.
5. **Initialization:** New V3 position NFTs were distributed to the respective owner wallets, and the protocol was formally launched.
#### Key parameters
- **Migration date:** Completed April 2026.
- **Duration:** Approximately one week.
- **Slippage protection:** The Alchemix DAO treasury covered conversion slippage up to 0.25%.
- **Dust threshold:** Positions valued at less than $0.01 USD at the time of the snapshot were not migrated.
:::info No action required
The migration ran automatically and is now complete. Eligible V2 positions were recreated on V3 and are available in the [Alchemix app](https://alchemix.fi). If you held a V2 position through the snapshot, it has already been migrated.
:::
### The migration Mana program
**Mana** was a loyalty-reward system that incentivized a coordinated migration and rewarded long-term participation within the Alchemix ecosystem. The earning period has closed, and Mana can no longer be earned.
#### Earning logic
Mana was awarded proportionally based on historical and current participation across Alchemix vaults and Liquidity Provider (LP) positions.
| Participation Type | Earning Rate / Logic | Eligibility Requirement |
| :-------------------- | :-------------------------------------------------------- | :-------------------------------------------- |
| **V2 Vault Deposits** | 1 Mana per $100 value per day | Must complete the V2 to V3 migration. |
| **Standard LP Pools** | Average balance Jan 15, 2025 compared to current snapshot | Retroactive, based on on-chain history. |
| **CL Pools** | Flat 1,000 Mana bonus | One-time reward for eligible CL pool history. |
- **Look-back period:** Retroactive rewards date back to January 15th, 2025.
- **Minimum threshold:** A minimum of **1.337 Mana** is required to be eligible for reward distribution.
#### Reward distribution
At the conclusion of the earning period, a fixed pool of **10,000 ALCX** is distributed proportionally based on each participant's total Mana relative to the global total.
### Eligible strategies & pools
#### Ethereum
##### alUSD
- Curve alUSD-3CRV 0x43b4FdFD4Ff969587185cDB6f0BD875c5Fc83f8c
- Curve alUSD-FRAXBP 0xB30dA2376F63De30b42dC055C93fa474F31330A5
- Curve alUSD-sDOLA 0x460638e6F7605B866736e38045C0DE8294d7D87f
- Curve alUSD-fxUSD 0x27cB9629aE3Ee05cb266B99cA4124EC999303c9D
##### alETH
- Curve alETH-WETH 0x8eFD02a0a40545F32DbA5D664CbBC1570D3FedF6
- Curve alETH-frxETH 0xB657B895B265C38c53FFF00166cF7F6A3C70587d
- Curve alETH-pxETH 0x30bf3E17CAD0baF1d6B64079Ec219808d2708fEb
##### Other
- Balancer WETH-ALCX 0xf16aEe6a71aF1A9Bc8F56975A4c2705ca7A782Bc
- Balancer v3 WETH-ALCX 0x1535d7ca00323aa32bd62aeddf7ca651e4b95966
- Curve ALCX-FRAXBP 0xf985005a3793DbA4cCe241B3C19ddcd3Fe069ff4
#### Optimism
##### alUSD
- Velodrome UniV2 alUSD-USDC 0x124D69DaeDA338b1b31fFC8e429e39c9A991164e
- Velodrome UniV2 alUSD-USDC.e 0x4d7959d17b9710be87e3657e69d946914221bb88
- Velodrome UniV2 alUSD-FRAX 0xaF03f51DE7a0E62BF061F6Fc3931cF79166B0a29
- Velodrome UniV2 alUSD-DOLA 0x67C253eB6C2e69F9E1114aEeAD0DB4FA8F417AC3
- Velodrome UniV2 alUSD-OP 0x60BE3FB22DDF30C17604b86eC005F6173B1170Aa
- Velodrome UniV2 alUSD-HAI 0x2408dc2b6cad3af2bd65474f0167a107b8b0be0b
##### alETH
- Velodrome UniV2 alETH-WETH 0xa1055762336F92b4B8d2eDC032A0Ce45ead6280a
- Velodrome UniV2 alETH-frxETH 0x1AD06Ca54de04DBe9e2817F4C13eCB406DCbeAf0
- Velodrome UniV2 alETH-pxETH 0x03799d6A59624AbDd50f8774D360A64f4FBfdCF5
- Velodrome UniV2 alETH-OP 0xA5EDb0EF932f7c2f37B8FC75CB01948F6258a4f8
##### Other
- Velodrome UniV2 ALCX-USDC 0x4b322314d6f7239f094f40d93e7d9c4a3081c625
#### Arbitrum
##### alUSD
- Ramses UniV2 alUSD-FRAX 0xfd599db360cd9713657c95df66650a427d213010
- Ramses UniV2 alUSD-USDC 0xb1736c14d949c49668a280222888d3695e96c69a
##### alETH
- Ramses UniV2 alETH-frxETH 0xfb4fe921f724f3c7b610a826c827f9f6ecef6886
- Ramses UniV2 alETH-ALCX 0x9c99764ad164360cf85eda42fa2f4166b6cba2a4
- Ramses UniV2 alETH-WETH 0xeb047610c8d099aef19a7362ff3fb8cc56e7d5bb
#### Linea
##### alUSD
- Nile UniV2 alUSD-frxUSD 0x6916e44Ce8BcEB671D96F4e837abE1920f723030
- Lynex UniV2 alUSD-USDC 0x5Db4533ECC4C455504821fA2dee56c2Ea459Ce37
##### alETH
- Nile UniV2 alETH-frxETH 0x2E7911dCDb6C638499522632976D8732CD62F7dd
- Lynex UniV2 alETH-WETH 0x51b41Ed7d7869B84bE5647e9BeEC9F8B7e70bA1D
##### Other
- Lynex UniV2 ALCX-USDC 0xaC73C5f3d110Bb051100cfD8Afa4aC4339f239E7
#### Concentrated liquidity pools
- Velodrome CL alETH-alUSD 0x844BdA8C554D3F14C2C068314b294A5b0Ed2E0dF
- Ramses CL alETH-alUSD 0xb69d60d0690733c0cc4db1c1aedeeaa308f30328
### Learn more
- [Alchemix v3 dApp](https://alchemix.fi)
- [AIP-123 Governance Proposal](https://alchemix.fi/governance/0xa3228100b34d6063dc03d35132c044a93ea1fbcce10a960bd43fb5a8454ec4b9)
- [Mana announcement thread (X)](https://x.com/AlchemixFi/status/2014381213465940470) — the in-app Mana calculator was retired when the earning period closed
---
## Mix-Yield Token
Source: https://docs.alchemix.fi/user/concepts/myt-and-yield
Mix-Yield Token (MYT) gives you passive exposure to a curated set of yield strategies without needing to manage positions yourself. Each token represents a share of assets that the Alchemix DAO allocates across multiple protocols.
[Explore technical documentation for MYT →](../../dev/myt/myt-contract)
### What is the MYT?
- **Open-source core** – MYT is a customized vault token built on Morpho Vaults V2 (ERC-4626). It holds deposits of ETH or USDC and routes them into several yield sources.
- **DAO-managed allocation** – The Alchemix DAO selects strategies, sets target weights, and rebalances as markets shift. Allocation is currently executed by the Alchemix DAO Multisig and is transitioning to full on-chain DAO governance.
### Why use the MYT?
- **Passive income:** Each deposit gives you diversified yield without manual re-staking.
- **Risk management:** DAO oversight and strategy diversification reduce single-protocol exposure.
- **Flexibility:** Choose the chain and bundle that suit your goals, redeem at any time.
### Depositing and earning
1. Select the MYT that matches your base asset and preferred chain.
2. Deposit ETH or USDC, and the vault will mint MYT at the current exchange rate. As yield accrues, each MYT represents an increasing claim on the underlying asset.
3. Hold MYT. As strategies earn yield, the redemption value of each token increases.
4. Redeem at any time for your principal plus any accumulated yield.
There are no lock-ups, and yield compounds continuously. You can also use your MYT as collateral in an Alchemix vault to [borrow up to 90% LTV](https://docs.alchemix.fi/user/concepts/myt-and-yield/self-repaying-loans) against it while it keeps earning underneath.
```mermaid
flowchart LR
classDef default font-weight:bold;
A(Deposit
ETH / USDC) e1@--> B(MYT
minted)
B e2@--> C(Yield strategies
Strategy A · Strategy B · Strategy C)
C e3@--> D(Yield
accrues)
D e4@--> E{{MYT redemption
value grows}}
E e5@-.->|redeem anytime| A
style E fill:#f5c09a,stroke:#1b1b1d,stroke-width:2px,color:#1b1b1d
linkStyle 0,1,2,3 stroke:#f5c09a,stroke-width:2px
linkStyle 4 stroke:#f5c09a,stroke-width:1.5px,stroke-dasharray:6
e1@{ animation: slow }
e2@{ animation: slow }
e3@{ animation: fast }
e4@{ animation: fast }
e5@{ animation: slow }
```
### Per-chain variants
There is one ETH-denominated and one USDC-denominated MYT on every supported chain (on Mainnet these are branded **mixETH** and **mixUSD**). Strategies differ by chain, letting you choose the profile that matches your preferences. These strategies can change with DAO-issued votes.
:::info Compositions change, verify in the app
The tables below are a point-in-time snapshot for reference. The DAO can revote strategy weights at any time, so always check the live composition, risk tiers, and allocations [in the Mixed Yield tab →](https://alchemix.fi/mixed-yield)
:::
The strategy labels below map to their underlying providers: `Euler*` = Euler v2, `TokeAuto*` = Auto Finance, `Aave*` = Aave, `Fluid*` = Fluid, `Yearn`/`yv*` = Yearn, `wstETH` = Lido.
#### Mainnet USDC
| Strategy | Risk | LiqAdapter | Max % |
|---|---|---|---|
| EulerUSD | Moderate | - | 25% |
| TokeAutoUSD | Moderate | - | 25% |
| Yearn yvUSD | Conservative | Yes | - |
| SiUSD | Conservative | - | - |
#### Mainnet ETH
| Strategy | Risk | LiqAdapter | Max % |
|---|---|---|---|
| EulerwETH | Moderate | - | 25% |
| TokeAutoETH | Moderate | Yes | 25% |
| wstETH | Moderate | - | 25% |
#### Arbitrum USDC
| Strategy | Risk | LiqAdapter | Max % |
|---|---|---|---|
| AaveUSDC | Conservative | Yes | - |
| EulerUSDC | Moderate | - | 25% |
| FluidUSDC | Moderate | - | 25% |
#### Arbitrum ETH
| Strategy | Risk | LiqAdapter | Max % |
|---|---|---|---|
| AaveETH | Conservative | Yes | - |
| EulerETH | Moderate | - | 25% |
#### Optimism USDC
| Strategy | Risk | LiqAdapter | Max % |
|---|---|---|---|
| AaveUSDC | Conservative | Yes | - |
#### Optimism ETH
| Strategy | Risk | LiqAdapter | Max % |
|---|---|---|---|
| wstETH | Moderate | - | 25% |
#### Global Risk Caps
Each strategy's risk classification caps how much of an MYT it can occupy, both individually and across all strategies of that tier. See [MYT Launch Strategies](../../governance/guides/myt-strategies) for the full classification methodology.
| Risk Level | Max Individual Strategy | Max All Strategies |
|---|---|---|
| Conservative | None | None |
| Moderate | 25% | 40% |
| Aggressive | 10% | 10% |
---
## How the Peg Works
Source: https://docs.alchemix.fi/user/concepts/how-peg-is-maintained
alAssets are the tokens you borrow against your collateral. Their price floats near 1.00, but the protocol never forcibly pins it there. Market incentives and redemption mechanics do the work of pulling price back to parity after short-term drifts.
**How the soft-peg works:** Inside the vault 1 alAsset always cancels 1 unit of debt, even if that token trades at a discount on exchanges. Fixed-duration redemptions and arbitrage tighten the gap, so price tends to revert without an explicit hard-peg.
### Why price drifts happen
#### Expansion – Borrowing & sale
When vault yield and redemption terms look attractive, borrowing spikes. Newly minted alAssets are often sold for the underlying or supplied single-sided to LPs, creating sell pressure and widening the discount.
```mermaid
flowchart LR
classDef default font-weight:bold;
A(Borrow) e1@--> B(Mint alAsset) e2@--> C(Sell alAsset) e3@--> D{{Price < 1.00}}
D e4@-.->|contraction corrects| A
style D fill:#f5c09a,stroke:#1b1b1d,stroke-width:2px,color:#1b1b1d
linkStyle 0,1,2 stroke:#f5c09a,stroke-width:2px
linkStyle 3 stroke:#f5c09a,stroke-width:1.5px,stroke-dasharray:6
e1@{ animation: slow }
e2@{ animation: slow }
e3@{ animation: fast }
e4@{ animation: slow }
```
#### Contraction – Transmuter demand
A wider discount plus a fixed-term Transmuter deposit produces a bond-like APR. Traders buy cheap alAssets, deposit them. The protocol earmarks an equal slice of collateral, transfers it to the Transmuter, and burns the alAssets at maturity. Supply contracts and price moves back towards peg.
```mermaid
flowchart LR
classDef default font-weight:bold;
A(Buy alAsset at discount) e1@--> B(Deposit to Transmuter) e2@--> C(alAssets burned) e3@--> D{{Price recovers to 1.00}}
D e4@-.->|expansion resumes| A
style D fill:#f5c09a,stroke:#1b1b1d,stroke-width:2px,color:#1b1b1d
linkStyle 0,1,2 stroke:#f5c09a,stroke-width:2px
linkStyle 3 stroke:#f5c09a,stroke-width:1.5px,stroke-dasharray:6
e1@{ animation: slow }
e2@{ animation: slow }
e3@{ animation: fast }
e4@{ animation: slow }
```
Borrowing becomes less attractive while the redemption queue is large, so the system naturally flips between expansion and contraction until equilibrium is reached.
#### External utility – Holding instead of selling
alAssets are now externally priceable through dedicated [Chronicle Labs](https://docs.alchemix.fi/user/concepts/how-peg-is-maintained/alAssets#using-alassets-across-defi) oracles, so holders can deploy them as collateral in other DeFi protocols rather than selling them. Every holder who puts an alAsset to work elsewhere instead of selling it removes a unit of sell pressure, reinforcing the price and supporting the peg alongside the Transmuter.
### Key points to remember
- Borrowing expands supply and can push alAsset price below par.
- Transmuter deposits contract supply and earn fixed yield, pulling price back.
- External composability (via Chronicle oracles) lets holders use alAssets elsewhere instead of selling, reducing sell pressure.
---
## Self-Repaying Loans
Source: https://docs.alchemix.fi/user/concepts/self-repaying-loans
A self-repaying loan lets you unlock liquidity without immediately selling your core position.
Deposit ETH or USDC and the vault issues a like-kind synthetic asset, alETH or alUSD, that mirrors the price of what you deposited. You may mint alAssets worth up to **90%** of your collateral's face value and deploy them however you like. Meanwhile, two built-in cash flows reduce the loan balance:
- **Vault yield** – Your collateral is wrapped in the Mix-Yield Token, which earns yield continuously.
- **Scheduled redemptions** – As Transmuter redemption positions mature, users will redeem their positions, which then triggers debt repayments using user collateral.
Because repayment comes from these predictable flows, the loan never accrues variable interest. The balance of your debt only moves in one direction (down) unless you choose to mint additional alAssets.
:::tip You are in control
While Alchemix loans repay themselves over time via yield, you are never locked in. You can manually repay part or all of your debt at any time to unlock your collateral immediately.
:::
```mermaid
flowchart LR
classDef default font-weight:bold;
A(Deposit ETH or USDC) --> B(Collateral wrapped as MYT)
B --> C(Vault yield accrues continuously)
B --> D(Transmuter redemptions mature on schedule)
C e1@--> E{{Loan balance decreases}}
D e2@--> E
style E fill:#f5c09a,stroke:#1b1b1d,stroke-width:2px,color:#1b1b1d
linkStyle 0,1,2,3,4 stroke:#f5c09a,stroke-width:2px
e1@{ animation: slow }
e2@{ animation: slow }
```
| | |
| --- | --- |
| **Collateral** | ETH → alETH, USDC → alUSD |
| **Maximum LTV** | 90% |
| **Interest rate** | 0% (balance declines, never compounding) |
| **Repayment sources** | MYT yield, scheduled transmuter redemptions, manual repayments |
| **Early repayment** | Send alAssets back at any time |
| **Position NFT** | Your position is represented by an NFT available in your wallet after the transaction confirms |
| **Liquidation** | Liquidations are extremely unlikely, but redemptions are applied to your share of the debt, thus affecting high LTV users more |
### What can self-repaying loans be used for?
- **Large purchases** – Access liquidity today without selling your position. No interest rate and no price-based liquidations means you don't need to watch the loan closely.
- **Yield looping** – Deposit borrowed alAssets into new positions for amplified yield.
- **IL protection** – Combine borrowing with like-for-like liquidity pools to generate fees without impermanent loss.
- **Short-term opportunities** – Quickly move capital while keeping your underlying position intact.
- **F.I.R.E-style loans** – Schedule periodic draws while your principal continues earning.
### Managing your position
For most borrowers, the position is low-maintenance. Deposit, mint, and check back when you need more liquidity. Active users can raise or lower their LTV, loop alAssets back into the vault for leverage, or time repayments around redemptions.
### Learn more
[alAssets: synthetic tokens explained →](https://docs.alchemix.fi/user/concepts/self-repaying-loans/alAssets)
[The Transmuter: how redemptions work →](https://docs.alchemix.fi/user/concepts/self-repaying-loans/transmuter)
[Tutorial: Take a Loan →](https://docs.alchemix.fi/user/concepts/tutorials/borrowing-in-alchemix)
---
## Redemption Rate
Source: https://docs.alchemix.fi/user/concepts/redemption-rate
Redemptions convert earmarked collateral into the asset required to repay debt.
Two ideas matter:
- **Redemption rate** – how fast the system deleverages your position.
- **Note:** Because debt and collateral are like kind, deleveraging does not lose the user any money (besides the redemption fee). This is different than many systems that charge interest rates that can at times be higher than the yield you are earning.
- **Temporal leverage** – the bonus yield you earn while waiting for an earmarked redemption to settle.
### The redemption rate
The redemption rate tells borrowers what share of total system debt redemptions will repay in one year through the Transmuter. A higher rate means loans clear more quickly.
#### Formula
```mermaid
flowchart LR
%% Font Weights
classDef default font-weight:bold;
%% Inputs
A(Transmuter Balance)
B(Transmutation Time)
C(Total System Debt)
D(Annual Redemptions)
E{{Redemption Rate}}
%% Connections
A e1@--> D
B e2@--> D
D e3@--> E
C e4@--> E
%% Styling
style E fill:#f5c09a,stroke:#1b1b1d,stroke-width:2px,color:#1b1b1d
linkStyle 0,1,2,3 stroke:#f5c09a,stroke-width:2px
e1@{ animation: slow }
e2@{ animation: slow }
e3@{ animation: fast }
e4@{ animation: slow }
```
##### Understanding the inputs
The redemption rate formula calculates how much of the total system debt can be cleared in one year, based on current conditions.
- **The Inputs:** The formula takes the current **Transmuter Balance** and the **Transmutation Time** (how long it takes for one batch of assets to be exchanged).
- **The Frequency:** Count how many times the Transmuter can cycle its balance in a single year (e.g., a 0.25-year duration means 4 cycles per year).
- **The Volume:** Multiplying the balance by the redemption frequency gives the **Projected Annual Redemptions**, the total value the system is on track to repay over the next 12 months.
- **The Rate:** Finally, that projected volume is compared against the **Total System Debt** to determine the percentage rate.
##### Example
The numbers below are illustrative. Actual Transmutation Times are governance-set and vary by asset and chain. If 1000 alETH sit in the Transmuter, the Transmutation Time is three months (0.25 years), and the Alchemist reports 1500 alETH of debt:
```mermaid
flowchart LR
classDef default font-weight:bold;
%% Nodes
A(Transmuter Balance
1,000 alETH)
B(Transmutation Time
0.25 Years)
C(Total System Debt
1,500 alETH)
D(Annualized Redemptions
1,000 alETH / 0.25 years
= 4,000 alETH/year)
E{{Redemption Rate
4,000 alETH / 1,500 alETH
= ~267%}}
%% Logic
A e1@--> D
B e2@--> D
D e3@==> E
C e4@--> E
%% Styling / Ani
style E fill:#f5c09a,stroke:#1b1b1d,stroke-width:2px,color:#1b1b1d
linkStyle 0,1,2,3 stroke:#f5c09a,stroke-width:2px
e1@{ animation: slow }
e2@{ animation: slow }
e3@{ animation: fast }
e4@{ animation: slow }
```
At that rate, the scheduled redemptions would repay roughly 2.67 times the current debt over a twelve-month horizon, meaning the average loan would clear well before a year has passed, assuming queue size, Transmutation Time, and debt levels remain unchanged.
#### What drives this number
| On-chain variable | Effect on the rate | Rationale |
| ------------------ | ---------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------- |
| Queued alAssets | ↑ Larger queue → higher rate | More alUSD or alETH waiting in the Transmuter funds more repayments. Arbitrage deposits enlarge this queue when the market price drifts below peg. |
| Total system debt | ↓ More debt → lower rate | A bigger denominator dilutes the impact of a fixed queue. |
| Transmutation time | ↑ Shorter term → higher rate | Each unit of queued alAsset cycles more often over a year. |
### Temporal leverage
Earmarking in Alchemix v3 differs from typical redemption systems. In many protocols, once debt is queued for repayment the matching collateral is sold immediately and stops earning. In v3, the system only flags (earmarks) the portion of collateral needed, but leaves it earning until a Transmuter position actually matures. The transfer out of the vault happens at that maturity moment, when the claim must be settled.
Throughout that waiting period your full deposit continues to earn yield, giving you an extra return called “temporal leverage”. The longer the gap between earmark and settlement, the more additional yield you collect before the earmarked amount finally goes toward your debt.
```mermaid
flowchart LR
classDef default font-weight:bold;
A(Earmark
T₀) e1@--> B(Waiting period
Collateral still earning yield) e2@--> C{{Settlement
T₁}}
style C fill:#f5c09a,stroke:#1b1b1d,stroke-width:2px,color:#1b1b1d
linkStyle 0,1 stroke:#f5c09a,stroke-width:2px
e1@{ animation: slow }
e2@{ animation: fast }
```
### Learn more
- [**Transmuter Mechanics**](https://docs.alchemix.fi/user/concepts/redemption-rate/transmuter) – How earmarking and redemption batches work.
- [**Live Charts**](https://alchemix.fi/) – View past and present data directly in the dapp.
---
## alAssets
Source: https://docs.alchemix.fi/user/concepts/alAssets
alAssets (alUSD, alETH) are synthetic tokens that mirror the value of their underlying asset.
They serve two purposes:
1. **Borrowing unit:** When you open a loan, new alAssets are minted to you.
2. **Redemption instrument:** Anyone can deposit alAssets into the Transmuter to redeem 1 alAsset for its underlying asset (alUSD → USDC, alETH → ETH) 1:1 after a fixed term.
The protocol values 1 alAsset at 1 unit of its underlying, but market price can drift below that. Borrowing and redemption both create opportunities around that gap.
:::note Not an algorithmic stablecoin
alAssets are **synthetic debt tokens**, not algorithmic stablecoins. Every 1 alAsset in circulation is backed by at least 1 unit of collateral in the Alchemist system. The peg is maintained via the Transmuter’s 1:1 exchange mechanism, not by minting/burning algorithms.
[Learn more about the Transmuter](https://docs.alchemix.fi/user/concepts/alAssets/transmuter).
:::
### Borrowing, selling, and the market discount
When you borrow, the protocol mints alAssets at face value. 1 alAsset offsets exactly 1 unit of debt inside Alchemix. Selling those tokens on an exchange may yield less than 1.00 since alAssets can trade at a market discount. For borrowers this is an upfront cost; for traders it can be a source of fixed return.
| Action | Inside Alchemix | On the open market |
| ------------- | -------------------------- | ---------------------------------- |
| Mint alAssets | 1 alAsset = 1 unit of debt | – |
| Sell alAssets | – | Price < 1.00 → **market discount** |
| Deleveraging | alAssets repay debt at 1:1 | Creates transmuter opportunities |
#### Example
Deposit 1,000 USDC, mint 900 alUSD (90% LTV). If alUSD trades at 0.97 USDC, selling yields 873 USDC (a 27 USDC market discount) while your recorded debt inside the vault remains 900 USDC.
### Why alAssets trade below par
- **Loan demand:** Borrowers mint and sell alAssets for working capital.
- **Liquidity:** Low liquidity can result in more dramatic price swings.
- **Market sentiment:** Traders may discount synthetic assets during volatility.
A small, predictable discount is healthy; large discrepancies invite arbitrage.
### Mechanisms that close the discount
| Mechanism | How it helps |
| ------------------- | ------------------------------------------------------------------------------------------------------------- |
| Transmuter | Fixed-duration redemptions let traders lock in the spread as a bond-like yield, burning alAssets at maturity. |
| Repayment arbitrage | Borrowers can buy alAssets cheaply on secondary markets and repay debt below face value. |
Together these forces pull market price toward 1.00 and keep borrowing capital-efficient.
### Using alAssets across DeFi
Historically alAssets were used primarily inside the Alchemix ecosystem, because external protocols had no reliable way to price them. With dedicated **Chronicle Labs** oracles, one feed per alAsset, alAssets can now be verifiably priced by other protocols and used as productive collateral across DeFi.
In practice this means you can hold an alAsset and put it to work elsewhere rather than selling it: for example, supplying alETH to an external lending market to borrow against it. Because holders can deploy alAssets instead of selling them, sell pressure drops, which reinforces the price and strengthens the peg for everyone.
### LTV sensitivity
A higher LTV does not, by itself, change the percentage discount an alAsset trades at. That spread is driven mainly by market liquidity and demand. What changes is your exposure to that discount and how yield interacts with redemptions over time.
Higher LTV means more capital deployed upfront. At 90% LTV on a $1,000 deposit you receive $900 in alAssets, twice what you’d get at 45%. That capital is yours to use anywhere: yield strategies, liquidity pools, purchases, or working capital. Whether high LTV makes sense depends on whether your deployed capital earns more than the collateral erosion it costs you over time.
Inside Alchemix, high LTV positions erode more collateral per redemption cycle than the vault yield replaces. Collateral and debt both fall, but the collateral falls faster, so you’ll need to re-borrow more often to maintain leverage. At lower LTV, vault yield can outpace redemptions entirely, letting collateral grow while debt falls.
The visualizer below shows only the internal Alchemix view. Returns on capital deployed outside the protocol are not included, and those returns are often the primary reason to borrow at higher leverage.
*(An interactive LtvSensitivity illustration appears here in the web version.)*
### Learn more
[Open a Self-Repaying Loan →](https://docs.alchemix.fi/user/concepts/alAssets/self-repaying-loans)
[Redeem via the Transmuter →](https://docs.alchemix.fi/user/concepts/alAssets/transmuter)
---
## Transmuter
Source: https://docs.alchemix.fi/user/concepts/transmuter
The Transmuter lets you redeem alAssets (alUSD, alETH) at a guaranteed 1:1 rate after a known waiting period. You buy below face value and receive the full value on the maturity date, paid as an equal value of MYT that normally unwraps to the underlying asset immediately.
:::tip Instant vs. guaranteed liquidity
The Transmuter guarantees a **1:1 exchange rate** (no slippage) but works over time as redemptions mature.
- **Want it now?** Use external liquidity pools (Curve, Balancer) which are instant but may have slight price slippage.
- **Want 1:1 value?** Deposit into the Transmuter and wait for redemptions to clear over a fixed period to fill your order.
:::
### How transmutations flow
```mermaid
flowchart LR
classDef default font-weight:bold;
A(Deposit
alUSD or alETH)
B(Queue
Locked for Transmutation Time)
C(Earmark
MYT reserved from collateral)
D{{Maturity
alAssets burned · 1:1 paid out}}
A e1@--> B e2@--> C e3@--> D
style D fill:#f5c09a,stroke:#1b1b1d,stroke-width:2px,color:#1b1b1d
linkStyle 0,1,2 stroke:#f5c09a,stroke-width:2px
e1@{ animation: slow }
e2@{ animation: slow }
e3@{ animation: fast }
```
- **Deposit** – Send alUSD or alETH to the Transmuter contract.
- **Queue** – Each deposit matures after the Transmutation Time, a governance-set duration that varies by asset and chain and is adjusted over time in response to market factors such as Transmuter capacity and demand. Always check the current term for your asset in the [dapp](https://alchemix.fi/fixed-yield) before depositing. You can exit early, but an early-withdrawal fee applies and you give up a portion of the fixed-rate outcome.
- **Earmark** – The protocol reserves an equal value of MYT from borrower collateral to guarantee your claim.
- **Maturity** – You receive 1 asset-worth of MYT from borrowers for every 1 alAsset deposited.
All redeemed alAssets are burned, contracting their supply.
### Why discounts exist
Borrowers often sell newly minted alAssets for working capital, pushing market price slightly below par. The spread between that market price and the Transmuter’s guaranteed 1:1 accounting creates a fixed-rate opportunity for buyers.
Inside Alchemix, 1 alUSD always offsets 1 USD worth of debt, regardless of its external market price.
#### Fixed-rate yield example
The figures below are **illustrative only**. The live market price, transmutation term, and resulting APR vary by asset and chain and are set by governance. Always check the current terms in the [dapp](https://alchemix.fi/fixed-yield).
**Market**: alUSD = 0.96 USDC
**Term**: 90 days
| Action | Outcome |
| ----------------------- | ------------------------------------------ |
| Buy alUSD | Spend 10,000 USDC → receive \~10,416 alUSD |
| Deposit into Transmuter | Locks the 10,416 alUSD for 90 days. |
| At maturity | Receive 10,416 USDC (via MYT) |
| Profit | 416 USDC = 4.16% in 3 mo = \~16.6% APR |
:::warning Transmuter deposit caps
The Transmuter has a maximum deposit cap based on the total alAssets minted on its specific chain. If a Transmuter is full, you may need to bridge alAssets to another chain to deposit.
**Always verify available Transmuter capacity on your target chain before purchasing alAssets.**
:::
### Edge-case handling
| Scenario | Result | Your Options |
| ------------------------------------ | --------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------- |
| Bad debt in Alchemist (exploit, etc) | Redemption pays pro-rata (e.g., 0.97:1) until debt is restored. | Claim now and take a haircut, or leave unclaimed. Once debt clears, you may redeem full 1:1. |
| MYT unwrap slippage | In some scenarios MYT may not be able to be immediately unwrapped for the underlying (e.g., the UI detects high slippage). | Withdraw MYT from the Transmuter to begin earning yield from it, then unwrap manually later, facilitated directly by the UI. |
There is no variable interest and no price-based liquidation affecting Transmuter positions.
### Strategic uses
- **Arbitrage & peg maintenance** – capture fixed yield while pulling alAssets back to parity.
- **LP protection** – LPs can move alAssets from liquidity pools into the Transmuter to erase impermanent loss if the peg widens.
- **Treasury management** – DAOs can park stable reserves for a known return without rate risk.
- **Diversified yield stacking** – pair Transmuter returns with base vault yield for stacked APR.
---
## Fees
Source: https://docs.alchemix.fi/user/concepts/fees
All Alchemix v3 fees are set by on-chain governance and fall into three areas: redemption-based fees for borrowers and transmuters, an early-exit fee for queued assets, and a performance fee on yield generation.
```mermaid
flowchart TD
classDef default font-weight:bold;
classDef fee fill:#1a1c1f,stroke:#f5c09a,stroke-width:2px,color:#f5c09a;
classDef free fill:#f5c09a,stroke:#1b1b1d,stroke-width:2px,color:#1b1b1d;
A(Using Alchemix) --> B(Deposit ETH / USDC)
A --> C(Deposit alAssets to Transmuter)
B --> D(MYT vault earns yield) --> E(15% performance fee
on gross yield):::fee
B --> F(Take a loan) --> G(Transmuter redemption
repays your debt) --> H(0.25% borrower
redemption fee):::fee
C --> I(Exit early or wait?)
I -->|Wait full term| J(0.00% — full
redemption value):::free
I -.->|Exit early| K(1.00%
Early Transmutation Fee):::fee
linkStyle 0,1,2,3,4,5,6,7,8,9 stroke:#f5c09a,stroke-width:2px
```
### Borrower redemption fee
When the Transmuter converts queued alAssets into vault value, it credits that amount against outstanding loans. At that moment, a small fraction of the repaid debt is routed to the protocol treasury.
The same fee applies whenever collateral is used to reconcile earmarked debt, not only through scheduled Transmuter redemptions. A force-repay (for example, during a self-liquidation) settles earmarked debt with collateral and is charged at this same rate, so the small protocol fees you see on those events are this borrower redemption fee.
- **Current Rate:** 0.25%
- **Effective Cost:** Because this is event-based rather than time-based, the cost depends on your starting LTV and the duration of the transmutation.
Effective APR ≈ Fee × (1 year ÷ Transmutation Time) × Starting LTV
### Transmuter fees
The Transmuter involves two distinct fee types depending on the user's action:
1. **Transmuter Fee:** An optional fee applied when a Transmuter depositor claims their underlying assets.
- **Current Rate:** 0.00%
2. **Early Transmutation Fee:** A fee applied when a user chooses to withdraw their funds from the Transmuter queue before the transmutation process is complete. This ensures the system remains stable and penalizes short-term "queue hopping."
- **Current Rate:** 1.00%
### MYT performance fee
Each Mix-Yield Token (MYT) vault skims a share of the gross yield generated by its underlying strategies before crediting the remainder to the MYT price. This fee funds strategy maintenance and ongoing protocol development.
- **Current Rate:** 15.00% (pending final DAO verification)
### Current fee schedule
| Chain | Base Asset | Redemption Fee | Transmuter Fee | Early Transmutation Fee | MYT Yield Fee |
| :----------- | :--------- | :------------- | :------------- | :---------------------- | :------------ |
| **Ethereum** | ETH | 0.25% | 0.00% | 1.00% | 15.00% |
| **Ethereum** | USDC | 0.25% | 0.00% | 1.00% | 15.00% |
| **Optimism** | ETH | 0.25% | 0.00% | 1.00% | 15.00% |
| **Optimism** | USDC | 0.25% | 0.00% | 1.00% | 15.00% |
| **Arbitrum** | ETH | 0.25% | 0.00% | 1.00% | 15.00% |
| **Arbitrum** | USDC | 0.25% | 0.00% | 1.00% | 15.00% |
:::note Governance oversight
All parameters are subject to Alchemix DAO oversight. Any updates to the fee schedule are executed on-chain and are visible within the Alchemix UI before taking effect.
:::
---
## Liquidations
Source: https://docs.alchemix.fi/user/concepts/liquidations
Liquidations in Alchemix v3 are a system-wide safety valve that activates only when the Mix-Yield Token loses backing. Because loans and collateral are like-kind, with ETH backing alETH and USDC backing alUSD, market price swings do **not** force positions to close.
:::tip Liquidations in Alchemix are rare
Price volatility alone cannot trigger a liquidation. Only a loss in the underlying yield strategy, such as an exploit or a strategy reporting negative returns, can move the liquidation threshold. Day-to-day, most users will never encounter one.
:::
### When liquidation does not occur
- **ETH or USDC price volatility:** None, debt and collateral move together.
- **alAsset drifting below peg on DEXs:** None, protocol still values alAssets at face value for repayment.
- **Hitting the 90% LTV borrowing cap:** Borrowing stops, the position stays open and keeps earning yield.
### What can trigger liquidation
- **Strategy loss, exploit, or severe slippage inside MYT:** Oracle shows MYT NAV is less than system debt.
- **Position exceeds liquidation threshold (95% LTV):** Oracle shows collateral value vs. debt ratio breaching threshold.
### Reading the health bar
The colored bar in the vault UI gives an at-a-glance view of your position. Keep your current LTV well below the liquidation marker. If MYT ever records a loss, the Liq marker slides left to reflect reduced backing.
*(An interactive HealthBar illustration appears here in the web version.)*
Only the minimum needed to restore your position to a healthy LTV, at or below the 90% maximum, is liquidated. The rest of your position is untouched. A liquidator fee is paid on both paths. If collateral can’t cover it, a separate fee vault (fundable by the DAO or any entity) covers the difference.
Day-to-day most users will never see a liquidation. If MYT vaults experience a loss, these mechanisms ensure losses are covered in a transparent and proportional way.
Review the MYT strategy breakdown and risk categories before choosing your LTV. The DAO sets a maximum percentage of the MYT that may be allocated to Aggressive and Moderate risk categories, which gives you a basis for calculating a safe LTV below the liquidation threshold.
---
## Risk Considerations
Source: https://docs.alchemix.fi/user/safety/risk-considerations
Every DeFi protocol involves tradeoffs. Here is what those look like in Alchemix.
This section breaks down who controls what in the Alchemix V3 stack, the various risks and counterparties that make up the Alchemix system, and how different failure scenarios are handled.
### Counterparties
Users of any DeFi protocol are encouraged to Know Your Counterparty (the real KYC!). Simply put, users should understand what other types of users make up the system they are opting into and where they fit in that system. Alchemix has a few primary counterparties:
#### MYT depositors
MYT Depositors provide collateral to and are thus exposed to the yield strategies that make up the MYT. If the MYT suffers a loss, that loss is distributed to all MYT Depositors. MYT Depositors are encouraged to monitor which yield strategies make up the MYT they are holding to ensure the exposure is in line with their own strategy.
#### Alchemist borrowers
Borrowers supply MYT to the Alchemists to take alAsset loans. Unless a depositor also wishes to act as a liquidity provider, they will typically swap their alAsset to another asset soon after taking the loan. Therefore, they are not exposed to the price of alAssets over time.
The primary risks a borrower takes are liquidation risk and redemption risk.
### Liquidation risk
If the MYT suffers a loss then the LTV of a borrower's position may increase beyond the maximum LTV. Each Alchemist has a set liquidation LTV at which the user’s position is eligible for liquidation, which will use collateral to repay debt, and pay the liquidator, until the user’s position is down to the target LTV.
Users can mitigate liquidation risk by using a conservative LTV based on the risk levels of the strategies that make up each MYT. The Aggressive and Moderate risk strategies in each MYT are limited to 10% and 40% of the MYT, respectively. If the liquidation LTV is 95% then the user can take a 45% LTV. In this scenario, even if all of the Aggressive and Moderate risk strategies suffer 100% losses, the user will still have a 90% LTV and therefore not be subject to liquidation.
As described in [MYT strategy pricing](../../governance/guides/myt-strategies#pricing-approach), Conservative risk strategies are priced only by fundamental oracles. This means only the underlying value of the strategy matters - not the dex or market price of the strategy token. Therefore, liquidation with these strategies can only occur if the contract loses value due to an exploit or other form of loss, NOT due to dex pricing, dex manipulation, or oracle manipulation. This means that liquidation risk due to Conservative risk assets is significantly lower than Aggressive and Moderate risk assets.
### Redemption rate
All borrowers will experience redemptions based on the amount of claims that occur in the transmuter. Borrowers should understand the [redemption rate](../concepts/redemption-rate), which effectively will deleverage the user over time while also charging redemption fees. Users can only face losses in one of two ways - from redemption fees, and from selling alAssets. The yield the users earn in the system is expected to offset these losses, but users should be aware of extreme conditions where low alAsset prices and high redemption rates could create situations where loans may be less profitable or even unprofitable. The good news is that Alchemix is designed to be a slow moving system especially at lower LTVs, so users who do not wish to constantly monitor positions can take loans at more conservative LTVs.
### Liquidity providers
alAsset liquidity providers are exposed to price fluctuations of alAssets. They create the liquidity for users to sell their alAssets for other tokens. alAssets can only be redeemed for underlying collateral in three ways:
1. **Loan repayment** (instant, 1 alAsset = 1 asset)
2. **Selling through a liquidity pool** (instant, price will fluctuate)
3. **Depositing in the Transmuter** (timeline is determined at time of deposit, 1 alAsset = 1 asset worth of MYT)
A liquidity provider / alUSD holder that does not have an Alchemix position in a yield strategy does not have option 1 at their disposal. A liquidity provider has three primary steps to consider when providing liquidity:
- Price / balance of liquidity pool when entering the pool
- Yield earned from providing liquidity over the life of the liquidity provision
- Price / balance of liquidity pool when leaving the pool
If the balance of the pool moves favorably for the LPer over time, they can earn yield as well as a net positive slippage from the difference between their exit and entry position. If the balance of the pool moves unfavorably, then the net negative slippage would be subtracted from the yield earned during their liquidity provision over time.
A user can hedge alAsset exposure by using the Transmuter, or by being a depositor within Alchemix. If the alAsset pool shifts less favorably for the depositor/LPer, they can withdraw alUSD instead of stablecoins for a bonus positive slippage and repay their debt.
:::note alAsset depeg scenarios
There are scenarios where alAssets may temporarily depeg or depeg for a longer period of time. LPers should understand future outcomes in both scenarios - see sections below for MYT losses. LPers especially should understand what conditions may result in temporary alAsset depegs vs more long-term depegs so they can re-evaluate their positions accordingly.
:::
#### Transmuter users
Transmuter users will deposit alAssets with a promised timeline at which they can claim MYT tokens in exchange for burning their alAssets. The value of the MYT is priced based on the combination of all strategies in the MYT. Some strategies may be less liquid or have duration-based exits. This means that while the transmuter user may be able to claim 1 ETH/USDC worth of MYT per 1 alETH/alUSD they deposit, the 1 ETH or 1 USDC may not be immediately available to be unwrapped from the MYT itself.
Additionally, all Transmuter users are exposed to the global collateralization of the Alchemist. Should the Alchemist detect global bad debt (global collateral asset value is worth less than global outstanding debt), then all Transmuter claims will be distributed pro-rata based on the bad debt ratio. The user can choose whether to proceed with the claim (accepting the reduced MYT distribution), or wait to claim until the Alchemist is re-collateralized.
Lastly, exiting the transmuter prior to completion of the transmuter timeline will result in a fee on any untransmuted assets, meaning transmuter funds are always accessible but not without restrictions.
#### DAO and ALCX holders
The DAO may be forced to sell assets, including ALCX, if needed to cover protocol losses in some scenarios.
### Governance & operational controls
See [Contract Roles](../../governance/guides/contract-roles).
### Security & audits
All core Alchemix V3 contracts have been audited by top-tier security firms, and a bug bounty program is active on Immunefi with a maximum payout of $300,000. New MYT strategies are reviewed by Nethermind before being whitelisted. Beyond audits, the protocol is monitored in real time by Hypernative, with automation that can pause the protocol if suspicious on-chain activity is detected.
[Full audit reports, bounty details, and security practices →](https://docs.alchemix.fi/user/safety/risk-considerations/security)
### Alchemix on Layer 2
#### The Alchemix Bridge
**DVN coverage by chain**
| Chain | LayerZero | Nethermind | Deutsche Telekom | Active DVNs |
| --- | --- | --- | --- | --- |
| **Optimism** | ✓ | ✓ | ✓ | LayerZero, Nethermind, Deutsche Telekom |
| **Arbitrum** | ✓ | ✓ | ✓ | LayerZero, Nethermind, Deutsche Telekom |
| **Linea** | ✓ | ✓ | ✓ | LayerZero, Nethermind, Deutsche Telekom |
| **Metis** | ✓ | ✓ | — | LayerZero, Nethermind |
**Security properties**
- **2-of-3 DVN confirmation (Metis uses 2-of-2)** – No single messaging provider can approve a bridge transaction unilaterally. An attacker would need to compromise 2 of the 3 independent DVNs simultaneously to forge a message.
- **DAO-controlled DVN list** – AlchemixDAO owns all bridge contracts and can swap out DVNs without taking the system offline. Compromised or misbehaving validators can be replaced via governance.
- **Ethereum supply ceiling** – A lockbox is used on Mainnet Ethereum. The circulating supply on Ethereum is capped at what was minted there. L2 bridges cannot inflate the token supply; bridged supply can never exceed the Ethereum-side ceiling.
- **Rate limits & bridge capacity** – Each asset/chain pair has a 24-hour rate limit. If Mainnet inbound capacity is saturated, alAssets may become stranded on L2 and trade at a discount. Verify capacity before large cross-chain positions.
- **Pinned libraries** – Utilized libraries are pinned to versions that are known to be safe.
- **xERC20 compatibility** – Our tokens are xERC20 compatible on L2s, which means we can set rate limits and pause bridging from our contracts directly. Rate limits are set per governance.
- **xERC20 limits** – xERC20 limits are set and maintained by Alchemix DAO Multisig.
**Bridgeable assets**
| Asset | Minting chains | Notes |
| --- | --- | --- |
| **ALCX** | Ethereum only | Minted exclusively on Mainnet; L2 supply is purely bridge-derived |
| **alUSD** | All chains | Can be minted or burned (Alchemist/Transmuter) on each chain |
| **alETH** | All chains | Can be minted or burned (Alchemist/Transmuter) on each chain |
The Alchemix Bridge is a custom implementation of the LayerZero OFT standard for cross-chain messaging. Any alAsset can be bridged to any chain to repay debt or use the Transmuter, subject to the rate limits above. More context on the bridging system can be found in [AIP-120](https://snapshot.org/#/s:alchemixstakers.eth/proposal/0xc1712a76c189e1188118e18a1ed90182360638f5ba7476ce36aa7f1ad4dc5347).
:::warning Bridging alAssets back to Mainnet is not guaranteed
Bridge capacity back to Mainnet is rate-limited. If that capacity is saturated, alAssets may become stranded on L2 and trade at a discount relative to Mainnet prices. Verify available bridge capacity before building a large cross-chain position.
:::
#### Transmuter and Alchemist
The Alchemist behaves the same on L2 as on Mainnet. The Transmuter (on all chains), however, has a maximum deposit cap that is dictated by the total alAssets minted by the Alchemist on that chain. Thus, there may be scenarios where alAssets purchased on one chain need to be bridged to another chain in order to be deposited to the transmuter. Users should always verify there is adequate space in the Transmuter they intend to use prior to purchasing alAssets.
### MYT losses & delayed unwrapping
The sections below apply to users with Alchemix loans. For users simply holding the MYT, there are two primary risks:
1. Some strategies may have a time delay on when withdrawal is possible, and the DAO is ultimately responsible for ensuring there is underlying asset available to withdraw from the MYT. Thus, users should recognize that there are scenarios where the underlying value of the MYT may not be immediately accessible (ie, users may not always be able to immediately withdraw USDC or ETH from the respective MYTs).
2. If an MYT suffers a loss, MYT users will suffer the same loss pro-rata (ie, if a strategy that makes up 10% of the MYT suffers a 50% loss, then all MYT users will experience a 5% loss.)
#### MYT arbitrage – large depeg of fundamental oracles
Alchemix uses fundamental oracles wherever possible. This means that prices are determined by the underlying assets for each strategy, rather than the market price of the strategy token. As noted in the Transmuter section above, transmuter users receive MYT tokens, not underlying, from the transmuter. If the MYT is composed of assets that are not immediately withdrawable, users may require reduced alAsset prices in order to consider transmutation worthwhile.
If the assets that make up the MYT depeg significantly on the open market (DEXes and CEXes), then it could result in a more significant temporary depeg due to perceived arbitrage in the system - however, it is important to note that the system will not actually suffer any losses in this scenario. The only losses/profits will be between users (LPers, arbitrageurs, transmuter users, borrowers) who elect to buy/sell alAssets during this period.
##### Example
stETH can typically be unwrapped into 1 ETH, but sometimes there is a delay in how long this unwrap takes. For this reason, stETH may trade on the open market for less than 1 ETH. For this example, we can assume the MYT is made up entirely of stETH. stETH has a withdrawal queue of 30 days, and thus is trading at 0.96 ETH.
Next, someone with a lot of stETH decides they can’t wait 30 days for their ETH, and sells it all now. stETH depegs down to 0.8 ETH per stETH. The following events occur:
- No liquidations occur, as the MYT is still priced at 1 stETH per ETH, thus 1 MYT = 1 ETH.
- Users may wish to arbitrage Alchemix, as they believe the MYT is mispriced, however, they cannot deposit stETH directly to the MYT. Thus, they deposit ETH:
- They now have a share of the MYT
- However, the MYT is now comprised of both ETH and stETH, thus the perceived value has moved closer to the fundamental value of 1:1
- The users who obtain MYT by depositing ETH can now take an Alchemix loan of alETH. In their mind, they are collateralizing 0.8 ETH to mint 1 alETH, thus they will mint alETH and sell it, likely until alETH drops to 0.8 ETH or even lower
- As of now these users have generated no profit - they need to exit the system to generate profit. The only approaches they can take are:
- Repay their loan with MYT - not viable, as the only way to get MYT is to deposit ETH, and they sold their loan for much less than 1 ETH per 1 alETH!
- Repay their loan with alETH - not useful, as they just sold alETH!
- Thus, the user is now in the system with no profitable way - at best, they can reverse their actions
- stETH is still worth 1 ETH fundamentally, and thus as the dex price recovers, the price of the alAsset will also recover
- The alAsset may still suffer some weakness in market pricing while the stETH withdrawal queue is at 30 days. Borrowers may not wish to take new loans, and transmuter users will need to consider this additional unwrap time when purchasing alETH to transmute to MYT.
#### MYT loss – price reported correctly
In some cases, a strategy may suffer a loss (due to an exploit or another reason) which means the MYT is truly fundamentally worth less than it was previously. In this scenario, the system checks users LTVs and makes users eligible for liquidation when they exceed the liquidation LTV set in the system.
If the losses are too severe or too rapid, liquidations may not properly trigger. In this scenario, users may end up with bad debt (user debt is worth more than user collateral). If this results in global bad debt (global debt is worth more than global user collateral), then the transmuter will enter an emergency mode. In this mode, any claim made MYT assets through the transmuter will distribute pro-rata to the bad debt. Ie, if the Alchemist is 90% collateralized, then transmuter claims will only distribute 0.9 ETH worth of MYT for each 1 alETH transmuted. Users have the choice to trigger the claim, or wait until the Alchemist is re-collateralized to claim at 1:1.
#### MYT loss – price reported incorrectly
Incorrect pricing is the least expected risk in the Alchemist, but not outside the realm of possibility. If a strategy is reporting an invalid price that is higher than the actual value of the strategy (ie, the strategy suffers a loss but the loss is not reported to the MYT), then Guardians will need to step in and pause deposits and new loans in the Alchemist to ensure additional collateral is not added to the Alchemist.
Guardians may wish to de-allocate from the defunct strategy, on a case-by-case basis. De-allocating results in the loss being realized by the MYT, thus triggering liquidations and bad debt ratios. Depending on the nature of the loss, this may not always be the best option.
In this scenario borrowers essentially are in a state where they perhaps should be liquidated, but are not yet. They may wish to repay some debt or unwind their position to avoid liquidation when the price updates, or they may wish to do nothing if their position is already in a state of bad debt (ie, they have essentially profited by the failure in pricing).
Transmuter users may want to withdraw from the transmuter and sell their alAssets, or wait for resolution. If they make a claim on the transmuter, they will receive 1 asset worth of MYT, but this is according to the incorrect pricing. Thus, regardless of whether the pricing has been updated or not, they will be receiving potentially less than one asset worth of MYT per 1 alAsset redeemed, and thus may wish to wait for proper recollateralization.
Existing MYT depositors will suffer the loss, but arbitrageurs may seek to deposit ETH to the MYT in order to mint alAssets with mispriced collateral. Even so, depositing ETH to the MYT is risky as many other users will be seeking to withdraw from the MYT, so there is no guarantee the arbitrageur can access their ETH after minting debt, especially because the Alchemist does not allow atomic (same block) deposit/withdraw txns as well as mint/repay debt txns.
---
## Security & Audits
Source: https://docs.alchemix.fi/user/safety/security
Alchemix V3 is designed with security at every layer. The approach combines an external audit suite, real-time automated threat monitoring, ongoing strategy review by Nethermind, and a bug bounty program.
### Audit coverage & reports
All core smart contracts for Alchemix V3 have undergone testing and audits by external security firms, alongside an in-house security suite (see [Internal security practices](#internal-security-practices)).
#### Core protocol audits
- **Spearbit/Cantina**
- Reviewed: May 2025
- Focus: Security review of Alchemix V3 mechanics, specifically protocol fees, liquidation logic, and debt-redemption accounting.
- [View Report](https://cantina.xyz/portfolio/f638950d-a8ad-4df8-a6ec-8b067e416d7b)
- **Immunefi audit competition**
- Reviewed: October–November 2025
- Focus: Time-limited community audit competition covering the core Alchemist, Transmuter, and MYT contracts.
- [View Report](https://drive.google.com/file/d/18LmIajwn6NOCbxKQJ49MVLyLSKb9gmD1/view)
- **alpeh_v** (independent researcher)
- Reviewed: October–November 2025
- Focus: Earmarking and transmutation accounting system including debt decay logic.
- [View Report](https://hackmd.io/@geistermeister/SkSZiU9ybe)
- **yAudit (yAuditDAO)**
- Reviewed: March 2026
- [View Report](/audits/v3-yearn.pdf)
#### Strategy audits
MYT access control and strategy contracts received dedicated reviews:
- **Nethermind**
- Reviewed: February 2026
- Focus: MYT access control (`myt-ac`) and strategy (`myt`) repositories.
- [View Report](/audits/v3-nethermind.pdf)
- **yAudit (yAuditDAO)**
- Reviewed: April 2026
- [Strategies report (April 15–17, 2026)](/audits/v3-strategies-yaudit.pdf)
- [Strategies follow-up report (April 23–24, 2026)](/audits/v3-strategies-yaudit-followup.pdf)
#### Continuous MYT strategy audits
To ensure the safety of user collateral, Alchemix has established a **long-term partnership with Nethermind**. Every new yield strategy considered for inclusion in a Mix-Yield Token (MYT) must undergo a dedicated audit by Nethermind before being whitelisted. This ensures that the risk profile of the MYT remains consistent even as the underlying strategy landscape evolves.
### Internal security practices
Beyond external reviews, Alchemix V3 is protected by a multi-layered internal defense strategy:
- **Extensive Testing Suites:** 100% unit test coverage combined with advanced invariant testing (Scribble/Diligent) to ensure protocol properties hold under all conditions.
- **Simulation & Fuzzing:** Continuous mainnet-fork testing and fuzzing via Foundry to stress-test the protocol against real-world market volatility and edge cases.
- **Multi-Stage Code Reviews:** Every line of code is reviewed by multiple internal contributors before moving to external audit.
### Real-time threat monitoring
Alchemix uses Hypernative for real-time threat detection across its contracts and dependencies, with pre-configured automation that can **auto-pause the protocol** the moment suspicious on-chain activity is detected. This complements the manual Guardian circuit breaker described below.
This has already mattered in practice. In the March 2026 DolaSavings/sDOLA price-manipulation incident, Alchemix had indirect exposure through Curve liquidity pools. Hypernative detected the attacker's preparation phase, automation paused the protocol, and treasury funds were withdrawn before the exploit landed, resulting in **zero losses for Alchemix**.
### Bug bounties
We encourage the stress-testing of our code. Our program is hosted on **Immunefi**, the leading platform for DeFi security, and was relaunched for the V3 contracts.
- **Max Bounty:** Up to **$300,000** for critical vulnerabilities.
- **Scope:** All core Alchemist, Transmuter, and MYT contracts.
- **Link:** [View Alchemix on Immunefi](https://immunefi.com/bug-bounty/alchemix-1/information/)
### Governance & timelocks
To prevent "flash-upgrades" and ensure community oversight, Alchemix V3 uses a timelock system.
- **Upgradeability:** Critical contracts are upgradeable only via the DAO.
- **Timelock Delay:** Set by governance. This delay provides users and third-party monitors time to exit or react before any code changes are executed.
- **Guardian Role:** A dedicated Guardian address can pause deposits and loans in an emergency but **cannot** unpause them or access funds, serving as a circuit breaker during volatility.
### Learn more
- [Alchemix GitHub](https://github.com/alchemix-finance)
- [Audit archive (v2 era)](https://v2-docs.alchemix.fi/resources/audits-and-reports)
- [FAQ](https://docs.alchemix.fi/user/safety/faq)
---
## Mixed Yield
Source: https://docs.alchemix.fi/user/tutorials/use-passive-myt
The Mixed Yield page is a dedicated space for depositing into Mix-Yield Token vaults. Each MYT pools capital across multiple yield strategies and compounds automatically, with no manual harvesting required.
### Prerequisites
- Connect your wallet and switch to the chain that holds the assets you plan to deposit.
- Confirm you have ETH for gas on that chain.
### Step 1 – Open Mixed Yield
Click Mixed Yield in the top navigation, or go directly to [alchemix.fi/mixed-yield](https://alchemix.fi/mixed-yield).
### Step 2 – Find your MYT
Use the asset filters (USDC or ETH) and chain filters to narrow the list. Sort by Highest APR to surface the best current rates. Click any card to expand it.
### Step 3 – Review strategy allocation
The expanded card shows the MYT's current APR, total deposits across all users, and your own balance in the vault. The strategy breakdown sits on the right side, listing the strategies the vault is actively deployed in along with each strategy's risk level and allocation percentage.
### Step 4 – Enter a deposit amount
Stay on the Deposit tab inside the expanded card. Select your asset from the dropdown and type the deposit amount.
### Step 5 – Confirm the transaction
Click Deposit. Your wallet shows the network, gas estimate, and amounts. Approve the transaction.
### Step 6 – Track your deposit
Return to the Dashboard and find your position under Open Mixed Yield Positions. This is the primary view for monitoring balances across all your MYT deposits. As yield accrues the redemption value of each MYT increases automatically.
To borrow against your deposit, head over to the Vaults page.
### Why use Mixed Yield instead of managing strategies directly?
- **Diversified yield** – capital is spread across multiple strategies, curated and rebalanced by the DAO.
- **Auto-compounding** – yield compounds continuously with no manual restaking.
- **Transparency** – strategy weights, risk levels, and historical performance are visible on-chain.
---
## Take a Loan
Source: https://docs.alchemix.fi/user/tutorials/borrowing-in-alchemix
After depositing into a Mix-Yield Token, you can borrow alAssets against your position. The vault keeps your collateral earning yield and lets you mint synthetic assets (alETH against ETH, alUSD against USDC) worth up to 90% of your collateral's face value.
:::tip You are in control
You can manually repay part or all of your debt at any time to unlock your collateral. [Learn more about self-repaying loans →](https://docs.alchemix.fi/user/tutorials/concepts/self-repaying-loans)
:::
### Prerequisites
- Connect your wallet and switch to the chain that holds your MYT deposit.
- Confirm you have ETH for gas on that chain.
- If you don't have an MYT deposit yet, complete the [Mixed Yield tutorial →](https://docs.alchemix.fi/user/tutorials/borrowing-in-alchemix/use-passive-myt) first.
### Step 1 – Open the vault
Click Vaults in the top navigation, then click the vault you want to borrow against.
### Step 2 – Select the Borrow tab
Open the Borrow tab on the vault page. If you don't already have a corresponding MYT deposit for this vault, you can use the Deposit/Borrow tab to deposit and borrow in one transaction.
### Step 3 – Review position stats
The top of the detail page shows your current position: APR, Deposit, Debt, Health Factor, Earmarked, Redemption Rate, Borrowable, and LTV. The health bar shows your position relative to the MAX LTV and liquidation LTV markers.
:::caution Liquidation risk
Alchemix does not use price-based liquidations. Liquidation risk comes from a yield strategy losing value, which can reduce your collateral below the liquidation threshold (95% LTV). Keeping LTV low reduces your exposure.
[Learn more about Liquidations →](https://docs.alchemix.fi/user/tutorials/concepts/liquidations)
:::
### Step 4 – Enter a borrow amount
Type the alAsset amount you want to borrow, or click Max to borrow the maximum within the current LTV limit.
### Step 5 – Confirm
Approve the transaction in your wallet. Once it completes, the position stats update to reflect your new debt.
### Step 6 – Track your position
The position is visible on the vault detail page and from your Dashboard. Use the alAsset however you like. Swap it for stablecoins, provide liquidity, or loop it back into the vault for further leverage.
### What repays the debt
Your collateral continues to earn yield in your vault. The DAO sets a period length for redemptions. When a Transmuter user completes a redemption, a slice of depositors' MYT collateral is liquidated to fund the redemption, repaying debt equal to the redeemed amount in the process. Given enough time and redemptions, this will eventually clear a vault user's entire debt.
[Learn more about redemptions →](https://docs.alchemix.fi/user/tutorials/concepts/redemption-rate)
### Key information
| Parameter | Value or behavior |
| ----------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Maximum LTV | 90% of collateral value. |
| Interest Rate | Zero. Debt balance only declines; it never accrues new interest. |
| Repayment sources | Vault yield, transmuter redemptions, manual repayments. |
| Early repayment options | Use alAssets to repay the debt at any time. |
| Position NFT | Your position is represented by an NFT available in your wallet after the transaction confirms. |
| Liquidation | Liquidations are extremely unlikely, but redemptions are applied to your share of the debt, thus affecting high LTV users more. [Learn more →](https://docs.alchemix.fi/user/tutorials/concepts/liquidations) |
#### Why borrow instead of selling?
- **Exposure** – Maintain exposure to the yield from your asset while deferring the actual sale of the underlying, supporting short-term cash needs.
- **Stable** – Avoid variable interest rates, price-based liquidations, and rollover risk common in other lending markets.
- **IL Protection** – Combine borrowing with like-for-like liquidity pools to generate fees without impermanent loss.
- **Leverage** – Loop alAssets back into the vault to amplify yield while the repayment mechanism remains self-managed.
Borrowing lets you access liquidity from your collateral while it keeps earning yield.
---
## Repay Your Loan
Source: https://docs.alchemix.fi/user/tutorials/repay-loan
Paying down or closing a loan reduces your debt and improves the metrics that govern your flexibility inside the vault: LTV, health factor, and withdrawable collateral.
### Why repay?
- **Lower LTV, higher health factor** – each repayment moves your loan health toward green and raises the liquidation buffer.
- **Collateral freedom** – collateral earmarked for the next redemption cycle is released proportionally, so you can withdraw it or redeploy it elsewhere.
- **Room for withdrawals** – withdrawing collateral reduces your deposit and raises your LTV against the 90% LTV cap. Repaying first creates the headroom to pull principal out.
Making even a small repayment secures more control over how and when you use your collateral.
The Repay tab accepts three asset types: alAssets, MYT, or the underlying token. You can use whichever is most convenient or cheapest at the moment.
### Earmarked vs non-earmarked debt
| Debt type | How to identify | Repayment asset | Effect |
| ------------- | --------------------------------- | --------------- | ------------------------------------------ |
| Non-earmarked | “Earmarked” counter = 0 in the UI | alAsset | Reduces debt immediately. |
| Earmarked | “Earmarked” shows a token amount | MYT | Repays the reserved slice and frees the earmarked collateral. |
Repaying earmarked debt before maturity can keep your health factor higher.
### Step 1 – Open the Repay tab
Go to the Dashboard, click Manage on your vault position, and select the Repay tab.
### Step 2 – Choose what to repay with
| Option | When to use | Notes |
| ------------------------ | ------------------------------------ | ----------------------------------------------------------------------- |
| alAsset (alUSD or alETH) | Standard debt | Repays non-earmarked debt only. |
| MYT (Mix-Yield Token) | Earmarked debt and/or standard debt | Required for any debt already earmarked for a redemption cycle. |
| Underlying (ETH or USDC) | Convenience | Interface swaps to MYT behind the scenes before applying the repayment. |
The asset-selector dropdown (left side of the entry box) will only list what is valid for the current vault state.
:::tip Pro tip: repaying with alAssets
You can often buy alUSD or alETH on secondary markets (like Curve) for slightly less than $1.00. Using these discounted tokens to repay your loan allows you to clear your debt cheaper than 1:1!
:::
### Step 3 – Enter the amount
Type the number of tokens you want to use to repay debt. The “Max” function will attempt to use your entire wallet balance, or the remainder of the debt balance, whichever is lower.
### Step 4 – Send the transaction
Click Repay and confirm the transaction in your wallet.
### Tips
- If you plan to close a position entirely, repay any earmarked debt first (MYT) and then clear the remainder with your choice of asset.
- Repaying earmarked debt with MYT can free up borrowable capacity sooner in a high redemption rate period.
---
## Withdraw
Source: https://docs.alchemix.fi/user/tutorials/withdraw
You can withdraw collateral from Alchemix at any time.
- **Vault deposits with a loan** – withdrawing reduces your collateral and raises your LTV. Check your position before pulling funds out.
- **Mixed Yield deposits without a loan** – there is no LTV to manage. Withdraw any amount up to your full balance.
### Prerequisites
- Connect your wallet and switch to the chain that holds the position.
- Confirm you have ETH for gas on that chain.
### Step 1 – Open the vault
Click Dashboard in the top navigation, then click the vault you want to withdraw from.
### Step 2 – Open the Withdraw tab
On the left panel, switch to the Withdraw tab.
### Step 3 – Check your LTV
The health bar shows your current position relative to the 90% MAX LTV cap. Withdrawing does not touch your debt, but it shrinks your collateral pushing your LTV upward. If the amount you plan to withdraw will cross the MAX LTV line, repay a little first to give yourself headroom.
[Learn how to repay →](https://docs.alchemix.fi/user/tutorials/withdraw/repay-loan)
[Learn more about LTV and liquidations →](https://docs.alchemix.fi/user/tutorials/concepts/liquidations)
### Step 4 – Enter an amount
Type the amount you want to withdraw into the input field. The vault returns your underlying asset, including any yield the MYT has accrued.
### Step 5 – Confirm
Click Withdraw. Your wallet shows the network, gas estimate, and amounts. Approve the transaction.
---
## Fixed Yield
Source: https://docs.alchemix.fi/user/tutorials/redeem-alassets
The Fixed Yield page lists every fixed-rate term available on your current network. By depositing alAssets, or letting the interface swap ETH or USDC into their alAsset form, you lock in a known return that settles on the term’s maturity date.
While your position sits in the queue Alchemix earmarks matching collateral at 1:1 so your redemption is guaranteed once the term ends. Early exits are possible, but they forfeit part of the promised yield.
### Step 1 – Open the Fixed Yield page
Select **Fixed Yield** from the top navigation, or go directly to [alchemix.fi/fixed-yield](https://alchemix.fi/fixed-yield). Each panel shows a fixed-rate term you can enter.
### Step 2 – Pick a term
:::tip Prices and yields vary by chain
APRs and alAsset spot prices differ across networks. Always verify the values shown in the Fixed Yield panel on your target chain before purchasing alAssets to deposit.
:::
Each panel displays:
- Term length
- Maturity Date
- Current alAsset price
- Projected fixed APR
- Deposit cap and remaining room
Click a term to select it.
### Step 3 – Choose a deposit asset
Use the dropdown on the right side of the panel to choose either alAsset, or its respective underlying asset. If you pick ETH or USDC, the interface swaps it to the matching alAsset before depositing automatically.
### Step 4 – Enter your amount
Type how much of the selected asset you want to commit. The panel instantly shows:
- Estimated percentage return
- Estimated asset return at maturity
### Step 5 – Submit
Click Deposit and approve the transaction in your wallet.
### Manage or close a position
Go to the Dashboard and scroll to Open Fixed Yield Positions.
| Function | When to use | Effect |
| ------------- | -------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------- |
| Close | Term ended | Receive underlying value in MYT. |
| Close (early) | Need funds before maturity | Receives a reduced amount, UI shows the penalty in advance. The penalty is a percentage set by the DAO, applying to untransmuted funds only. |
If the contract returns MYT due to temporary liquidity limits, you can unwrap it manually or wait until the queue clears.
### Key points
- Fixed-rate terms pay the displayed return only at maturity.
- Early closure invokes the penalty shown in the UI.
---
# Projects & Integrators
---
## Welcome
Source: https://docs.alchemix.fi/projects
Alchemix V3 transforms a single deposit of ETH or USDC into two complementary, capital-efficient positions. First, funds are wrapped into a **Mix-Yield Token (MYT)**, which earns yield across a diversified set of strategies curated and risk-managed by the Alchemix DAO. This same collateral simultaneously unlocks a flexible credit line, allowing users to mint synthetic **alAssets (alETH or alUSD)** worth up to 90% of the initial deposit.
The redesigned **Transmuter** accepts these alAssets and, on a fixed schedule, returns MYT at a 1:1 ratio. This mechanism ensures alAssets maintain tight price parity with their underlying assets while creating predictable, bond-like yield opportunities for users who acquire alAssets at a market discount.
## Why integrate Alchemix?
Integrating with Alchemix V3 provides a combination of capital efficiency that traditional lending protocols cannot match. With **interest-free debt** and **industry-leading LTVs**, users can unlock liquidity without sacrificing their underlying yield. Because the protocol uses like-kind borrowing (e.g., borrowing ETH against ETH), liquidation risk remains significantly lower than traditional cross-collateral looping, creating a superior risk-adjusted yield profile. The Transmuter adds a **fixed-yield arbitrage** opportunity on top, letting integrators capture a predictable spread. By building on V3, partners and users effectively piggyback off the protocol's growth and its battle-tested security framework.
## Where the platform fits
- **DAO Treasuries** – Raise operating capital without liquidating long-term holdings. DAO’s can mint alAssets, exchange them for their required spending currency, and let the vault yield repay their debt over time.
- **Yield Strategists** – Thanks to Alchemix's like-kind borrowing and 0% interest on its debt, users can use our looping tool to generate reliable and highly competitive yield for both ETH and USD.
- **Liquidity Providers** – LPs can pair alAssets with another token that tracks the same price (for example, alETH with frxETH) and eliminate impermanent-loss risk on the alAsset side thanks to 1 to 1 redemptions through the Transmuter.
## Core features
| Feature | Purpose |
| -------------------------- | ----------------------------------------------------------------------------------------------------- |
| Alchemist Vault (ERC-4626) | The core borrowing engine. Deposit collateral to mint alAssets. |
| Mix-Yield Token (MYT) | Tokenized basket of yield strategies, which can be unwrapped for the underlying assets at any time. |
| Transmuter | Fixed-duration redemptions that stabilize alAsset prices and create predictable return opportunities. |
| Self-repaying CDP | Debt is automatically retired by vault yield and scheduled redemptions. |
## What integrators gain
By building on top of the V3 stack, projects gain a single-token gateway to highly competitive ETH and USD yield. Integrators can offer returns managed by a diversified set of DAO-curated strategies without the overhead of building internal yield infrastructure.
Beyond yield, integrating alAssets as collateral or within liquidity pools gives projects direct exposure to the growth of the Alchemix V3 economy. Partners benefit from increased Total Value Locked (TVL), simplified liquidity management due to the absence of impermanent loss on like-for-like pairs, and joint marketing opportunities across the Alchemix ecosystem. As V3 scales, integrators are positioned to capture the value flowing through one of DeFi's most sustainable synthetic-asset engines.
## Who benefits most
End users seeking passive yield, money-market protocols in search of high-quality collateral, vault curators adding new strategies, DAO treasuries managing runway, leverage-oriented yield farmers, and liquidity providers who want prices on both sides of a pool to move together.
---
## FAQ
Source: https://docs.alchemix.fi/projects/faq
Answers to the questions we hear most from projects, protocols, and treasuries evaluating an Alchemix V3 integration. For end-user questions, see the [user FAQ](/user/faq).
**Q: What is Alchemix V3, in one paragraph?**
Alchemix V3 is a protocol for saving, borrowing, and earning fixed-yield returns. Users deposit ETH or USDC into a Mix-Yield Token (MYT), a DAO-curated basket of yield strategies, and can borrow synthetic alAssets (alETH or alUSD) against it at up to 90% LTV with 0% interest. Debt is repaid automatically by vault yield and scheduled Transmuter redemptions rather than monthly payments.
[Learn more about how Alchemix works →](/user)
**Q: Which assets and chains does V3 support?**
V3 accepts ETH and USDC deposits and issues alETH and alUSD against them. The protocol is live on Ethereum Mainnet, Optimism, and Arbitrum, with alAssets bridgeable across supported chains (including Linea and Metis) via the Alchemix Bridge, a custom implementation of the LayerZero OFT standard.
An up-to-date list of networks is always visible in the [app](https://alchemix.fi).
**Q: How is V3 different from V2?**
Three headline changes: the maximum LTV rose from 50% to 90%, collateral is now pooled in the Mix-Yield Token instead of single-strategy vaults, and the Transmuter moved to fixed-duration redemptions with known maturity dates. All V2 positions were migrated to V3 in April 2026.
[Read the migration record →](/user/v3-migration)
**Q: Can users be liquidated?**
Not by price movements. Debt is denominated in the same asset as the collateral (like-kind borrowing), so market volatility does not change a position's LTV. Liquidation is only possible if the MYT itself loses backing — for example through a strategy exploit — and a position crosses the liquidation threshold above the 90% borrowing cap.
[Learn more about liquidations →](/user/concepts/liquidations)
**Q: What can integrators actually build on?**
The main integration surfaces are:
- **MYT** – an ERC-4626-based yield token that wallets, aggregators, and treasuries can hold or route deposits into.
- **alAssets** – synthetic tokens with dedicated Chronicle Labs price feeds, usable as collateral or in liquidity pools on external protocols.
- **The Transmuter** – fixed-term 1:1 redemptions that create predictable, bond-like yield for treasuries and structured products.
[Explore the use cases →](/projects/why-integrate/use-cases)
**Q: How are alAssets priced by external protocols?**
Each alAsset has a dedicated oracle feed provided by Chronicle Labs. This lets money markets and other protocols verifiably price alUSD and alETH, so they can be listed as productive collateral rather than only traded on DEXs.
[Learn more about alAssets across DeFi →](/user/concepts/alAssets#using-alassets-across-defi)
**Q: Is Alchemix V3 audited?**
Yes. The V3 codebase was reviewed by Spearbit/Cantina, Nethermind, yAudit, an Immunefi audit competition, and independent researcher alpeh_v, alongside an in-house testing suite. Every new MYT strategy is audited by Nethermind before whitelisting, the protocol is monitored in real time by Hypernative with auto-pause capability, and an Immunefi bug bounty of up to $300,000 is active.
[Full audit reports and security practices →](/user/safety/security)
**Q: Can we fork Alchemix V3?**
The V3 codebase is source-available under the Business Source License (BUSL) 1.1, so production deployments require a license agreement. The Friendly Fork Initiative provides that path: approved teams receive a commercial license, chain exclusivity for their target ecosystem, and direct technical advisory in exchange for revenue share and alignment with the Alchemix DAO.
[Read the Friendly Fork terms →](/projects/how-to/friendly-fork)
**Q: What marketing support do partners get?**
Partners get a BD lead for launch coordination, co-authored announcements and threads, invitations to community events such as Fireside chats and X Spaces, and access to brand assets and templates.
[See co-marketing and BD support →](/projects/support/co-marketing)
**Q: How do we start a conversation?**
Fill in the [partnership interest form](https://docs.google.com/forms/d/1QxQ2fjYckzqoAFAEY9xYXpXdw6zb4Z6o5NaIiUVhQlE/viewform), or reach the team directly in the [Alchemix Discord](https://discord.gg/alchemix). For Friendly Fork inquiries you can also contact our Partnerships Lead on Telegram: **@Ov3rkoalafied**.
[Apply to partner →](/projects/contact/apply-to-partner)
---
## Apply to Partner
Source: https://docs.alchemix.fi/projects/contact/apply-to-partner
We're always open to exploring new partnerships with projects, protocols, and builders in the ecosystem. If you're interested in collaborating with the Alchemix team or integrating with Alchemix V3, we'd love to hear from you.
If you're interested in working together, please fill out our short partnership interest form:
👉[ Apply to Partner with Alchemix V3](https://docs.google.com/forms/d/1QxQ2fjYckzqoAFAEY9xYXpXdw6zb4Z6o5NaIiUVhQlE/viewform)
We review submissions regularly and will follow up directly if we see a strong fit. Thanks for your interest in building with Alchemix!
---
## Getting Started
Source: https://docs.alchemix.fi/projects/how-to/getting-started
Most integrations follow one of four paths. Find yours below, then reach out — every integration gets a direct line to the core team, so you never have to reverse-engineer the protocol alone.
### 1. Route deposits into the MYT
**For:** wallets, yield aggregators, onboarding platforms.
The Mix-Yield Token is a customized vault token built on Morpho Vaults V2 (ERC-4626). It holds ETH or USDC deposits and spreads them across DAO-curated strategies, compounding continuously with no lock-ups. If your product can hold or route into an ERC-4626-style vault, it can offer Alchemix yield as a single standardized asset.
- [How MYT works →](/user/concepts/myt-and-yield)
- [Live vaults and current strategy mix →](https://alchemix.fi/mixed-yield)
### 2. List alAssets as collateral or liquidity
**For:** money markets, DEXs, liquidity managers.
alUSD and alETH each have a dedicated Chronicle Labs oracle feed, so external protocols can price them verifiably. Like-for-like pools (alETH/ETH-family pairs) avoid impermanent loss on the alAsset side because the Transmuter redeems 1:1 at maturity.
- [alAssets and external pricing →](/user/concepts/alAssets#using-alassets-across-defi)
- [How the peg holds →](/user/concepts/how-peg-is-maintained)
### 3. Build fixed-income products on the Transmuter
**For:** treasuries, structured-product designers, fixed-income desks.
Deposit alAssets into the Transmuter and receive a guaranteed 1:1 redemption at a known maturity date. Acquiring alAssets below par turns that into a fixed rate known at entry — a bond-like primitive that can be wrapped, tranched, or laddered.
- [Transmuter mechanics →](/user/concepts/transmuter)
- [Live terms and rates →](https://alchemix.fi/fixed-yield)
### 4. Deploy your own fork
**For:** teams bringing the Alchemix engine to a new chain or asset class.
Alchemix V3 is source-available under BUSL 1.1. The Friendly Fork Initiative licenses the codebase for production use, with chain exclusivity and direct technical advisory from the core team.
- [Friendly Fork terms →](https://docs.alchemix.fi/projects/how-to/getting-started/friendly-fork)
### Before you build
- **Read the protocol docs.** The [user documentation](/user) covers mechanics; the [developer section](/dev) covers contracts and is being expanded.
- **Check the code.** The V3 contracts are public at [github.com/alchemix-finance/v3](https://github.com/alchemix-finance/v3).
- **Understand the risk model.** [Risk considerations](/user/safety/risk-considerations) explains counterparty exposure for each role in the system, and [Security & audits](/user/safety/security) covers the audit suite and monitoring.
### Talk to us
Fill in the [partnership form](https://docs.google.com/forms/d/1QxQ2fjYckzqoAFAEY9xYXpXdw6zb4Z6o5NaIiUVhQlE/viewform) or find us in [Discord](https://discord.gg/alchemix). We pair every serious integration with a BD lead and technical contact.
[Apply to partner →](https://docs.alchemix.fi/projects/how-to/contact/apply-to-partner)
---
## Friendly Fork Initiative
Source: https://docs.alchemix.fi/projects/how-to/friendly-fork
Alchemix V3 is published under a Business Source License (BUSL) 1.1. While the codebase is source-available, any commercial or production-use deployment requires a formal license agreement with the Alchemix Association.
The **Friendly Fork Initiative** provides a structured pathway for teams to deploy Alchemix V3 in ecosystems not currently served by the core protocol. This framework allows partners to build sovereign, localized versions of the Alchemix engine while maintaining a strategic and economic link to the Alchemix DAO.
## Partner Benefits
- **Commercial Production License:** Approved teams receive a worldwide, perpetual license to copy, modify, and deploy the Alchemix V3 codebase for their specific project.
- **Chain Exclusivity:** The Alchemix Association grants the licensee the **exclusive right** to deploy Alchemix V3 on their target blockchain for their approved assets, protecting the partner from dilutive "copycat" forks on the same network.
- **Direct Technical Advisory:** Access to the Alchemix core team for architecture review and implementation guidance.
- **Ecosystem Distribution:** Marketing support via Alchemix social channels and inclusion in the broader Alchemix ecosystem narrative.
## Program Requirements & Rules
To maintain the integrity of the protocol and the interests of the Alchemix DAO, all friendly forks must adhere to the following:
### 1. Remuneration & Alignment
Friendly forks are designed as a "win-win" economic partnership. Licensees agree to:
- **License Fee:** A percentage allocation of the fork's native Project Token (if issued) to the Alchemix DAO, including dilution protection.
- **Revenue Share:** A tiered percentage of the monthly Gross Protocol Revenue (GPR) generated by the fork, paid to the Alchemix DAO.
### 2. Branding & Attribution
While the technology is Alchemix, the brand must be sovereign to avoid user confusion:
- **No Trademark Use:** Licensees **cannot** use Alchemix trademarks, including the names _Alchemix_, _alUSD_, _alETH_, _Transmuter_, or _Mix-Yield Token_. The fork must develop its own unique brand and asset names.
- **Required Attribution:** Documentation must clearly state the project is a "Licensed fork of Alchemix V3" and display the Alchemix Approved Logo in the user interface footer.
### 3. Security & Performance
- **Audit Mandate:** Any modifications to the core Alchemix V3 code must undergo an independent security audit. The Alchemix core team reserves a review period to evaluate the audit report before deployment.
- **KPI Metrics:** The Alchemix Association evaluates the project based on agreed-upon KPIs (such as TVL and Market Cap) after an initial performance evaluation period.
## How to Apply
If you are interested in becoming an official Friendly Fork partner, please follow these steps:
1. **Contact Us:** Reach out to our Partnerships Lead directly via Telegram: **@Ov3rkoalafied** (or [fill in our partner form](https://docs.google.com/forms/d/1QxQ2fjYckzqoAFAEY9xYXpXdw6zb4Z6o5NaIiUVhQlE/viewform)).
2. **Drafting:** Upon initial approval, we will share the full **Source Code License Agreement** template to begin formalizing the Project scope and KPIs.
---
## Co-Marketing & BD Support
Source: https://docs.alchemix.fi/projects/support/co-marketing
Alchemix V3 is built on a foundation of positive-sum collaboration. When you integrate with the Alchemix stack you become a strategic partner in a growing synthetic-asset economy. We provide the technical and social infrastructure to ensure your integration reaches the right audience and scales effectively.
### Partnership Onboarding & Enablement
We treat onboarding as a high-touch process to ensure technical success and strategic alignment from day one.
- **Direct Technical Conduit:** Partners gain a direct line of communication to Alchemix core contributors for implementation support, troubleshooting, and custom strategy alignment.
- **Strategic Launch:** Each partner is paired with a BD lead to coordinate launch strategy, ensuring the integration is timed for maximum ecosystem impact.
- **The Network:** We provide warm introductions to other Alchemix-aligned protocols, DAOs, and yield providers to help you build deeper integrations across the DeFi ecosystem.
### Co-Marketing & Ecosystem Amplification
The Alchemix DAO maintains one of the most engaged and technically literate communities in DeFi. We use that reach to put your project in front of the right audience.
- **Joint Narrative Building:** We collaborate through in-depth threads, blog posts, and newsletters that explain the _why_.
- **High-Impact Community Events:** Partners are invited to our weekly Fireside chats and co-hosted Twitter/X Spaces to present their value proposition directly to the Alchemix community.
- **Co-Branding Kit:** Access to high-resolution V3 assets and marketing templates to ensure a professional, cohesive look.
### Growth & Incentives
We believe in rewarding the liquidity and activity that drives the protocol forward.
- **Incentive Collaboration:** Where there is strategic overlap, the Alchemix DAO can collaborate on co-incentive programs or liquidity mining campaigns to bootstrap initial adoption.
- **Continuous Feedback Loop:** Our BD and product teams stay in sync with our partners, ensuring the Alchemix V3 roadmap continues to support long-term needs.
- **Ecosystem Case Studies:** We highlight successful integrations through dedicated case studies and "Partner Spotlight" features, documenting the real-world value created by the collaboration.
### Resources
- For branding assets, please refer to our [Marketing Material](../../user/marketing-material)
- To reach our Business Development team, please fill in [this form](https://docs.google.com/forms/d/1QxQ2fjYckzqoAFAEY9xYXpXdw6zb4Z6o5NaIiUVhQlE/viewform).
---
## Security & Audits
Source: https://docs.alchemix.fi/projects/support/security
Full audit reports, bug bounty details, internal security practices, and governance timelock information are maintained in the user-facing documentation.
[View Security & Audits →](/user/safety/security)
---
## Brand Assets
Source: https://docs.alchemix.fi/projects/support/brand-assets
Everything you need to represent Alchemix correctly in co-marketing material, integration UIs, and announcements.
### Get the assets
All official logos, token marks, brand colors, and typography live on one page, with PNG and SVG downloads:
[**Marketing Material & logo downloads →**](/user/marketing-material)
That page includes the full Alchemix logo (Copper, White, Black), the standalone brand mark for avatars and tight spaces, alETH and alUSD token logos, the brand color palette, and both brand typefaces.
### Usage guidelines for partners
- **Use the assets as provided.** Don't recolor, stretch, add effects to, or redraw the logo or token marks.
- **Pick the right variant for your background.** Copper or White on dark backgrounds, Black on light. The standalone mark is for small sizes (favicons, avatars, token lists).
- **Name the tokens correctly.** The synthetics are written *alUSD* and *alETH* (lowercase "al"), and the yield token is *Mix-Yield Token* or *MYT*.
- **Integrations may reference Alchemix by name** when describing a genuine integration ("Powered by Alchemix", "alUSD supported"). Trademark use beyond that — including in project names or forked deployments — requires a license; see the [Friendly Fork Initiative](https://docs.alchemix.fi/projects/support/how-to/friendly-fork) for what licensed forks may and may not use.
### Questions or custom requests
For co-branding kits, high-resolution art, or anything not covered here, reach out to **@metalface** in the [official Discord](https://discord.gg/alchemix), or ask your BD contact.
[Co-marketing & BD support →](https://docs.alchemix.fi/projects/support/brand-assets/co-marketing)
---
## Use Cases
Source: https://docs.alchemix.fi/projects/why-integrate/use-cases
This section contains a variety of potential use-cases for collaboration with Alchemix v3.
## DAOs & Treasuries
Treasury managers can park idle ETH or USDC in the Mix-Yield Token (MYT) to earn a diversified return while assets remain fully on-chain. When liquidity is required, the same collateral facilitates a credit line of alAssets that can be swapped for operating capital. This allows the DAO to maintain its core exposure while the Alchemist system manages debt.
The debt balance is reduced through two mechanisms: yield generated by the MYT and redemptions from the Transmuter. While redemptions reduce debt, they also reduce the underlying collateral. Therefore, maintaining a long-term position requires a conservative LTV where the yield generation is sufficient to offset the impact of the redemption rate.
Example flow:
| Action | Result |
| ---------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------ |
| Deposit 10,000 ETH → MYT | Treasury earns blended yield, MYT appreciates relative to ETH. |
| Mint 2,000 alETH, swap to stables | Low-LTV borrowing creates runway without selling core assets. |
| Vault yield and redemptions accrue | Redemptions gradually reduce debt. If MYT yield remains higher than the redemption rate, the position will become debt free automatically. |
| Repay debt with excess alETH | Unused alETH can be used to further reduce exposure to collateral redemptions. |
## Money-Market Protocols
Listing alUSD and alETH as collateral enables Alchemix users to unlock significant new utility through cross-collateral borrowing. By supporting these assets, platforms allow users to deposit alAssets and borrow non-native assets such as USDC or other stables.
For money-market protocols, the primary benefit is the ability to capture significant volume from V3 borrowers. As Alchemix V3 grows, these platforms benefit directly from the increased liquidity and activity.
## Vault Curators
Strategy designers can submit new ERC-4626 modules for inclusion in the MYT basket. Once approved by governance, the module earns a slice of generated yield, providing curators with recurring revenue and improving the vault’s risk-adjusted return.
## DeFi Onboarders
Wallets, dashboards, and on-ramps can integrate the Mix-Yield Token (MYT) to offer their users direct access to automated, diversified yield through a single, standardized asset. By also facilitating access to the Transmuter, these platforms can expose their users to predictable, fixed-yield opportunities.
This integration enables onboarders to broaden their product suite with yield and credit features without the operational complexity of maintaining strategies in-house.
## Yield Aggregators
Aggregators can route deposits into Alchemix vaults to capture strong, dependable ETH or USD denominated yield. The position can stand alone or be folded into a layered product, allowing the aggregator to charge a performance or management fee while delivering competitive returns.
## Yield Hunters
Power users can stack three angles: looped leverage on risk-adjusted yield, fixed-rate gains by buying discounted alAssets for Transmuter redemption, and like-for-like liquidity pools that minimize impermanent loss. This creates a toolkit that delivers both predictable income and optional upside without variable-rate complications.
---
## Feature Comparison
Source: https://docs.alchemix.fi/projects/why-integrate/feature-comparison
DeFi credit comes in a few structural flavors. The table below compares Alchemix V3 against the two most common lending models — variable-rate money markets and CDP stablecoin systems — on the properties that matter to integrators and their users.
This is a comparison of *mechanisms*, not of live rates. Rates, fees, and parameters change; the structural differences below do not.
| Property | Alchemix V3 | Money markets (e.g., Aave, Compound) | CDP stablecoins (e.g., Sky/Maker, Liquity) |
| --- | --- | --- | --- |
| **Interest on debt** | 0%. Debt only moves down unless the user mints more. | Variable, set by pool utilization. Can spike without warning. | Stability fee (variable) or one-time minting fee. |
| **Repayment** | Automatic. Vault yield and scheduled Transmuter redemptions retire debt over time. | Manual. Borrower must repay principal plus accrued interest. | Manual. Borrower must repay to unlock collateral. |
| **Liquidation trigger** | Strategy loss only. Like-kind borrowing means price swings cannot move LTV. | Price-based. Collateral price drops force liquidation. | Price-based against the collateral ratio. |
| **Maximum LTV** | Up to 90%. | Typically 50–80% depending on asset. | Varies; overcollateralization is usually mandatory well below 90%. |
| **Collateral productivity** | Collateral keeps earning inside the MYT while borrowed against. | Supplied assets earn the pool's supply rate. | Collateral generally sits idle (some vault types excepted). |
| **Borrowable asset** | Like-kind synthetic (alETH against ETH, alUSD against USDC). | Any listed asset (cross-collateral risk). | Protocol stablecoin only. |
| **Fixed-rate instrument** | Built in. Transmuter deposits lock a known 1:1 redemption at a known maturity. | Not native; requires third-party protocols. | Not native. |
| **Position management burden** | Low. No interest accrual or price liquidations to monitor. | High. Rates and health factor need active monitoring. | Medium. Collateral ratio needs monitoring in volatile markets. |
### What this means in practice
- **For end users**, an Alchemix loan is closer to "sell a slice of future yield" than to a margin account. There is no scenario where a user wakes up to an interest bill or a price-triggered liquidation.
- **For integrators**, like-kind borrowing plus fundamental oracles mean positions built on Alchemix have fewer external dependencies to monitor — no utilization curves, no cross-collateral contagion.
- **For treasuries**, the Transmuter's fixed-duration redemptions offer something neither model provides natively: a known return at a known date, backed by protocol collateral rather than counterparty credit.
### Where other models win
Alchemix is not a universal replacement. Money markets support a much wider range of collateral and let users borrow assets other than a like-kind synthetic. CDP stablecoins offer deeper liquidity in their native stablecoin. If a user needs to borrow an arbitrary third asset against arbitrary collateral, a money market is the right tool; Alchemix is the right tool when the goal is liquidity against ETH or USDC without selling, without interest, and without price-liquidation risk.
### Learn more
- [Use cases →](https://docs.alchemix.fi/projects/why-integrate/feature-comparison/use-cases)
- [Self-repaying loans explained →](/user/concepts/self-repaying-loans)
- [Liquidation mechanics →](/user/concepts/liquidations)
