How does the Alchemix protocol work?
Alchemix allows users to insert DAI stablecoins and mint "alUSD" from up to 50% of the inserted DAI. The DAI stored in Alchemix's smart contracts then goes to the Yearn finance vaults, where they can start generating profit immediately. Generated gains can then automatically start repaying debt incurred during the minting of DAI by using Alchemix.
Here are 3 examples of how users can manage their open loan using Alchemix:
What is alUSD?
The term alUSD refers to the ERC-20 token on Ethereum, which will be tradable. When users mint their alUSD, they also have the option to save the alUSD back to a converter that can convert alUSD back to DAI and even to other stablecoins. Depending on various factors within the Alchemix ecosystem, this process can take varying lengths of time.
The team behind Alchemix also plans to build additional applications within the Alchemix ecosystem that will utilize the new alUSD. Before creating new applications for alUSD, early users can be the first to participate in Alchemix's liquidity extraction program.
Where can you buy an ALCX token?
Because ALCX is an altcoin, you need to find a crypto exchange with which you can trade. In this case, it is the Sushiswap and 1Inch exchanges that offer trading of the ALCX token with different currency pairs. To trade on these exchanges, you must first register there. Once you have completed the registration, you will need to deposit one of the tradable currencies on the stock exchange, such as ETH, DAI, USDT, WETH (Wrapped Ether), which you will exchange for an ALCX token, which you can then send to your wallet.