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Investing In Alchemix Finance (ALCX) – Everything You Need to Know

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Alchemix (ALCX) is a next-gen DeFi (decentralized finance) network. It combines the flexibility of peer-to-peer lending with the profitability of high yield features. Users can create synthetic tokens that leverage these systems to repay their loans back themselves over time.  The concept of a self-repaying loan is a popular one that has helped the protocol secure a growing user base since its launch in March 2021.

What Problems Does Alchemix Finance (ALCX) Solve?

There are a number of problems that Alchemix Finance helps to eliminate. For one, the decentralized nature of the network reduces centralization in the financial sector. Getting a loan from your local bank is a time-consuming and often fruitless experience. You must go in and plead your case as well as meet a variety of criteria ranging from collateral requirements, all the way to, looking responsible enough to pay a loan back in the eyes of the loan officer.

Alchemix (ALCX) - Twitter

Alchemix (ALCX) – Twitter

Sadly, none of these concerns should be what dictates if you receive a loan. Protocols such as Alchemix Finance eliminate these gatekeepers. Anyone from around the world can access financing as long as they meet the collateralization requirements. Unlike other lending systems, Alchemix loans are self-repaying. As such, there is no need for the other steps of the process when borrowing on Alchemix Finance.


Transaction delays are a major problem for the lending sector. It can take weeks to receive loan approval from certain organizations. These delays can mean that the person misses crucial opportunities. Alchemix provides users with instant access to funding after meeting their collateralization requirements. Notably, the self-repayment aspects of Alchemix Finance make it ideally suited for long-term lending versus short-term funding.

Locked funds

Another major problem that Alchemix Finance helps to solve is the issue of locked funds. Whenever you must provide collateral to receive a loan, it can take years before you regain access to those funds. This approach can be counterproductive for people seeking to leverage their funds into profits. Alchemix Finance introduces a proprietary system to the market that enables anyone to retrieve the tokenized value of the deposited stablecoin collateral instantly.

Benefits of Alchemix Finance (ALCX)

There are a lot of advantages and benefits users can obtain when they join Alchemix Finance. The network integrates DeFi features such as farming and staking to provide users access to low-risk passive income streams. The interface and network features are well built to empower users to manage wealth over time as well.

Automatic Loan Repayment

The biggest draw for Alchemix Finance is the automatic loan repayment protocols. Specifically, the collateral-backed loans get paid off automatically through the use of yield generated by the collateral via vaults. As your debt gets repaid, you’re able to borrow more from the platform. In this way, you're actually borrowing against your future yield. Most loans take around 2.5 years to pay off at a 20% APY. The same loan will take over 5 years to pay off at 10% APY.

Alchemix (ACLX) - Homepage

Alchemix (ACLX) – Homepage


Another major benefit of Alchemix Finance is its flexibility. You can pay off more of your loan ahead of time to unlock your collateral whenever you like. This option is great when you start to reach the end of the lending period. You can unlock your collateral and use it to secure more funding at that time.


The development team behind Alchemix Finance took extra care to ensure the protocol is secure. The platform has been audited and tested multiple times. The system passed all of the CertiK tests with no incidents reported.

Passive Income

Another major benefit that continues to help drive Alchemix adoption is the network's passive income streams. You can farm your alUSD stablecoins to secure high APYs with low risk. Farming requires you to provide liquidity to a smart contract. The more you provide and the higher your rewards. It’s similar to staking but there are no lockup periods and the APY changes daily.

Alchemix Finance also supports staking features, Staking is a little bit easier for new users because it has a present APY. This approach makes it easy to secure consistent returns without risking your original assets. Staking is one of the best ways for new crypto users to prosper. As such, staking protocols are one of the most popular DeFi features available.

How Does Alchemix Finance (ALCX) Work

Alchemix Finance is an Ethereum-based protocol. These systems leverage Ethereum to remain valid. Ethereum is the largest DeFi and Dapp ecosystem in the world. As such, Alchemix enjoys high interoperability and expansion capabilities in the future.

To use Alchemix Finance, you must deposit the stablecoin DAI as your collateral. The system will then mint alUSD for your loan. alUSD is a synthetic stablecoin that enables users to borrow up to 50% of their collateralization amount. Notably, DAI and alUSD are treated 1:1 for repayment and liquidation.


alUSD is a synthetic stablecoin. It’s backed by DAI 1-to-1 on Alchemix. You can trade this token on decentralized markets for other cryptocurrencies. The token is an ERC-20 standard protocol and can be farmed to improve ROIs.

ALCX - CoinGecko

ALCX – CoinGecko


ALCX is the main utility, governance, and reward token for the Alchemix Finance network. This token also meets ERC-20 standards. You can stake ALCS tokens to secure low-risk returns.

Community Governance

Alchemix Finance is a community governed project. The network integrates a DAO (decentralized Autonomous Organization) to conduct development-related discussions. The community can vote on changes and upgrades. The number of ALCX tokens you hold determines the weight of your vote.

History of Alchemix Finance (ALCX)

Alchemix Finance entered the market officially in March 2021. The protocol was spearheaded by a group of anonymous developers including Scoopy Trooples. The platform has seen considerable growth since that time and the developers intend to integrate other forms of collateral and currencies including ETH and wBTC in the near future.

How to Buy Alchemix Finance (ALCX)

Alchemix Finance (ALCX) is available on the following exchanges:

Uphold – This is one of the top exchanges for USA & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.

Uphold Disclaimer: Terms Apply. Cryptoassets are highly volatile. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong..

Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry with over 9,000,000 users, and over $207 billion in quarterly trading volume.

The exchange offers trading access to over 190 countries including Australia, Canada, Europe, and is our most recommend exchange for USA residents. (Excluding New York & Washington state)

Binance – Accepts Australia, Singapore, and most of the world. Canadian & USA residents are prohibited. Use Discount Code: EE59L0QP for 10% cashback on all trading fees. 

Alchemix Finance – A Self-Paying Loan Protocol

Alchemix has changed the game with its innovative approach to lending. The network is sure to secure more users as people continue to learn about its cool features and low-risk options. In the future, you can expect to see other platforms duplicate this approach if proven successful. For now, Alchemix Finance demonstrates the creativity and ingenuity of the market perfectly.

David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including