Alchemix: A Philosopher’s Stone or Fool’s Gold?

In February an interesting new project Alchemix surfaced, taking the entire DeFi industry by storm.

Alchemix DeFi
  • DeFi project, Alchemix has stirred a lot of interest since its launch in February after completing a $4.9 million fundraiser
  • The project offers highly flexible instant loans that repay themselves over time
  • The new synthetic protocol token promises no liquidation
  • Alchemix is backed by the likes of CMS, Immutable Capital, and Alameda Research
  • After opening at $571.02, Alchemix (ALCX) currently trades at $1,331.79

In February 2021, an interesting new project known as Alchemix surfaced, taking the entire DeFi industry by storm. The promises of this young project have piqued the interest of some major players

What is Alchemix?

The buzz around the ingenious protocol has attracted the attention of top players in the industry. Alchemix recently completed a $4.9 million fundraiser led by the trio of CMS, Immutable Capital, and Alameda Research.


Alchemix, marketed as a real-life iteration of the philosopher’s stone, is a DeFi protocol that provides users with the functionality of highly flexible instant loans that repay themselves over time. 

With Alchemix, the need for liquidation is expended as the debt repays itself over time placing it on a pedestal over other protocols. The technique behind this is that the yield gained from user deposits is used to write off the initial cost of the debt over a period of time.

How Does Alchemix Work?

Version one of Alchemix was launched with a synthetic derivative “alUSD.” To mint alUSD, users make a deposit of DAI into the Alchemist smart contract. Minting of alUSD can earn users up to 50% of the deposited amount of DAI at a 1:1 ratio. 

Users can deposit funds that are committed to earning yield. These funds, after yielding, will automatically repay the users’ debt. Unlike other non-flexible systems, Alchemix provides several methods in which users can manage their loans:

  • Option 1: the deposits are left to continually earn yield. This will allow them to draw down their loan collateral periodically
  • Option 2: loans can be repaid using alUSD or DAI, allowing them to withdraw their collateral
  • Option 3: the deposits can be set to liquidate their loan using part of their collateral while the remainder can be withdrawn

On the Flipside

  • After jumping by more than 200% in its first 30 days, Alchemix has been hit by a major bearish trend
  • On Thursday, April 22, the bearish momentum sent Alchemix reeling by 16.44% in 6 hours
  • Over the last 24 hours, the coin is down by 20%, and now trades at $1,322.52

Alchemix to the Moon?

One of the promises of projects that generate as much interest as Alchemix is the possibility of being the next project to hit the “moon”. The crypto has had a magical time in its very short stay in the crypto industry.


After opening at $571.02, the coin fell to $348.31 on the same day. A steady rise saw the coin hit an all-time high of $2,018.37 on March 17. Alchemix (ALCX) held on to an average of about $1,750 for the next couple of days until the weekend dip. Following a mixed start, the question remains: Will Alchemix get to the moon?

Very simply, Alchemix has the potential to be the next crypto to get to the moon. However, from what we have learned, the success or failure of crypto projects is very dependent on the development and managerial team behind the project.

Already, the Alchemix team has shown strong signs for ecosystem growth. The team has already outlined plans to release more dApps that will utilize alUSD and other future al-tokens for their usage.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia