Alchemix Analysis: Revolutionizing DeFi with Self-Repaying Loans (2024 - 07/2025)
Data updated until 07/2025 and is just basic information about the project to help assess it easily – Not investment advice 😊

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🌟 Project Overview
@AlchemixFi is a pioneering DeFi protocol on Ethereum, allowing users to borrow self-repaying loans by utilizing future yields from collateral assets. With alAssets (like alUSD, alETH), users can instantly access asset value without worrying about liquidation. From 2024 to 07/2025, Alchemix has launched V2, expanded to Arbitrum and Optimism, and achieved several milestones in community governance.

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🕒 Important Milestones
- April 2024: Launch of Alchemix V2 on Arbitrum, improving UX/UI and integrating xERC20 standard for alAssets.
- July 2024: Release of Q2 2024 report, noting a 33.9% decrease in treasury value to $12.11 million due to market conditions.
- September 2024: Launch of Layer3 Quest on Arbitrum with a $12.5K ALCX prize to attract users.
- October 2024: Increase vault limits for Yearn, AAVE, and Vesper on mainnet, optimizing yields.
- December 2024: Launch of Questbook Grants Program, funding 3 community projects to boost the ecosystem.
- July 2025: Launch of new React UI, enhancing user experience and integrating additional yield strategies.

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🤝 Strategic Partnerships
- @fraxfinance: Integration of alUSD into the FRAXBP pool, increasing liquidity and yields.
- @CurveFinance: Support for the alETH-ETH pool, despite being affected by the Curve hack in 2023 (73% of assets recovered).
- @VelodromeFi: Providing veNFT on Optimism, optimizing fees and yields.
- @AerodromeFi: Integration of veNFT on Base, expanding yield strategies.
- @Layer3XYZ: Collaboration to launch Arbitrum Quest, attracting new users.
These partnerships help Alchemix increase liquidity, optimize yields, and expand across Layer-2.

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💰 Tokenomics & Current Price
- Token: ALCX (ERC-20), used for governance and liquidity mining.
- Total Supply: ~2.5 million ALCX (circulating supply: ~2.4 million).
- Mechanism: ALCX holders vote on governance, deciding treasury allocations. Fees from Elixir pools are distributed to ALCX stakers.
- Current Price (07/2025): ~7.45 USD, market cap ~17.88 million USD, 24h trading volume ~1.96 million USD.
- All-time High (ATH): ~11,060 USD (2021).
- All-time Low (ATL): ~6.5 USD (month 2025).
(Old items from 2020-2021, be cautious of potential delisting if standards are not met)

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📈 Revenue & Profit
According to DeFiLlama, Alchemix reports an annual revenue of about $1.2 million from Elixir pools fees (alUSD-FRAXBP, alETH-frxETH) and harvest fees on Mainnet, Optimism, and Arbitrum. Revenue is distributed to the treasury and stakers. Alchemix does not disclose specific profits as it is a decentralized protocol. Treasury value decreased from $18.32 million (Q1 2024) to $12.11 million (Q2 2024) due to market decline. Global deposits increased by 6.7% to $52.29 million. The project raised $4.9 million through funding rounds to support development and programs like Questbook Grants.
(This data is from third parties and may occasionally be inaccurate for various reasons, whether from the project, changes in the project, or API errors,... so please just use it for reference)

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🛠 Products & Technology
- Self-Repaying Loans: Users deposit DAI or ETH into the vault, receiving alUSD/alETH for immediate use, while the collateral automatically repays the loan through yields.
- Alchemix V2: A modular system supporting multiple yield strategies (Yearn, AAVE, Vesper) and types of collateral assets.
- Elixir Pools: Providing liquidity for alUSD and alETH, integrated with Curve, Frax, and Layer-2.
- xERC20 Standard: Enhancing security and liquidity for alAssets on Arbitrum and Optimism.
- Governance: Decentralized governance through ALCX, with 6 proposals voted on in Q2 2024.
Alchemix's technology stands out with flexibility, no liquidation, and cross-platform integration capabilities.

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🗺 Future Plans (Roadmap)
- Q3-Q4 2025: Expanding new vaults on Layer-2, integrating more yield strategies.
- Community Growth: Continuing Questbook Grants and Layer3 Quests to attract users.
- UX/UI Improvements: Enhancing React UI, adding real-time dashboards and verifiable NAV reporting.
- Composability: Strengthening integration with DeFi protocols to become core infrastructure.
- Treasury Management: Optimizing the treasury through community governance.

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🚀 Opportunities
- Unique technology: Self-repaying loans eliminate liquidation risks, attracting DeFi users.
- Expanding ecosystem: Integrations with @fraxfinance, @VelodromeFi, and Layer-2 increase liquidity.
- Community governance: ALCX holders control the treasury, promoting decentralization.
- Layer-2 potential: Deploying on Arbitrum and Optimism reduces gas fees, attracting new users.

⚠ Challenges
- Fierce competition: Competing with AAVE, Compound, and other DeFi lending protocols.
- Price volatility: ALCX price decreased by 99.4% from ATH, reflecting market risks.
- Past risks: The Curve alETH-ETH pool hack in 2023 caused $13.6 million in damages (73% recovered).
- Technical complexity: The self-repaying mechanism may be difficult to understand for new users.

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🎯 Conclusion
@AlchemixFi is revolutionizing DeFi with self-repaying loans and Layer-2 integrations. From 2024 to 07/2025, the project launched V2, expanded to Arbitrum, and improved governance through Questbook Grants. Despite facing competition and price volatility, Alchemix has the potential to become core DeFi infrastructure through its innovation and growing ecosystem. 🚀

#ALCHEMIX #ALCX #defi #SelfRepayingLoans #Web3 #Crypto

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References:
- Alchemix Official Website
- Alchemix X Posts
- CoinMarketCap
- CoinGecko
- Blogtienao
- DeFiLlama