Skip to main content

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 collateral keeps earning underneath.

If you already know what you're looking for, jump straight to the relevant tutorial:

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​

Deposit to 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​

Borrow at 20% LTV
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, respectively.

If you need spendable funds, swap the alAsset to USDC. The borrower fee shown in the UI will apply when redemptions occur.

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 visualizer below projects how the position plays out. It tracks three lines over the term: your Deposit (collateral, earning yield), your Debt (paid down by scheduled redemptions), and your Net Value (deposit minus debt). Adjust the yield, redemption rate, alAsset price, and duration to see how the loan settles itself. No repayments, no interest, no action required.

Boost Multiplier1.00×
Example position: deposit $10,000 USDC, borrow $2,000 alUSD (20% LTV)
$0$5.0K$10K$8.0K$8.2K$8.5K024681012months
Loan Cost$100 USDC
Projected Profit$361 USDC (+4.52%)
Educational illustration only. The defaults reflect protocol state as of July 27, 2026 and will drift over time. For an accurate, position-aware projection, always use the live visualizer in the Alchemix dApp, which will always be the most accurate if you are looking to build a position.
Deposit and Debt use the left axis; Net Value (deposit minus debt) uses the right. Adjust the inputs to explore.

Next steps​

Explore the concepts behind what you just did:

Or go deeper with the step-by-step tutorials: