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 performance fees on yield generation.
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:
- Transmuter Fee: An optional fee applied when a Transmuter depositor claims their underlying assets.
- Current Rate: 0.00%
- 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)
Ecosystem vault fee
The Alchemix Ecosystem Vault is a curated vault that deploys deposited WETH across a mix of Alchemix v3 yield sources (liquidity pools, Mix-Yield Tokens, and Fixed-Yield Transmuter positions) to earn a blended yield. It takes a share of that yield before crediting the remainder to depositors. It currently runs as a single WETH vault on Ethereum.
- Current Rate: 20.00% of yield
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% |
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.