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 by redemptions from the Transmuter. Each redemption reduces debt and the underlying collateral by the same value. Yield generated by the MYT accrues to the collateral and offsets that draw. Maintaining a long-term position therefore calls for a conservative LTV, where 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 retire debt and remove matching collateral. Yield replenishes the collateral. If the yield on the collateral outpaces what redemptions draw (a function of LTV and the redemption rate), the collateral keeps growing while the debt falls to zero. |
| 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 propose new strategy adapters for inclusion in the MYT basket. After an independent audit and risk classification, the Curator can add the adapter and set its caps. Well-performing strategies improve the vault’s risk-adjusted return. Compensation for strategy designers is arranged with the DAO; the vault contracts themselves pay only the protocol’s performance fee.
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.