Quick definitions for key terms used throughout the Alchemix V3 documentation. Each entry links to the full concept page where applicable.
alAsset
A synthetic token minted by borrowing against collateral in Alchemix. alUSD mirrors USDC; alETH mirrors ETH; alUSDb mirrors USDC on Base. Inside the protocol, 1 alAsset cancels 1 unit of unearmarked debt at face value regardless of its external market price; earmarked debt is repaid with MYT instead.
Alchemist
The core smart contract that accepts MYT collateral, issues alAsset loans, and manages LTV enforcement, earmarking, and liquidation logic.
Earmarked debt
A slice of a borrower's outstanding debt that the protocol reserves as Transmuter positions vest. The collateral behind it continues earning yield until the moment of settlement. Earmarked debt must be repaid with MYT and cannot be cleared with alAssets.
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)
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)
The ratio of outstanding debt to collateral value, expressed as a percentage. Alchemix allows borrowing up to 90% LTV. Positions at or above 95% LTV become eligible for liquidation.
Mix-Yield Token (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 rises as underlying strategies earn yield, and falls if a strategy records a loss.
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
An Alchemix loan whose balance decreases over time without the borrower taking action. Scheduled Transmuter redemptions draw MYT from the borrower's collateral and cancel the same amount of debt, while the remaining collateral keeps earning yield. Interest rate is 0%; debt only moves downward unless the borrower mints more.
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
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.