Alchemix USD (ALUSD)

v3 so far is off to a good start. For the first time in over a year, @AlchemixFi is growing in TVL and borrowing, and we are seeing the dynamic between debt expansion and the fixed-duration transmuter redemption module playing out just as we had modeled.

I don't expect things to rocket up in an instant (as our modeling didn't indicate they would) but it is so satisfying to see it play out like we thought it would. Due to the duration mismatches for CDP and redemptions, we can expect a constant grind upwards in TVL and debt as the system churns. If things continue like they are now, I wouldn't be surprised to see a net growth of 3-5% month over month indefinitely.

It may take some time for the pegs to stabilize at our target of 0.99+, so alUSD and alETH are more-so 'bonds' right now and less-so stable-synths, but when (not if) we hit our targets, Alchemix will be the premier destination for looping yields and maximizing the effectiveness of your savings.

Up Only.

When alAssets trade below their peg, you can deposit them into the Transmuter and lock today’s discount.

This burns alAssets to receive the underlying 1:1 at a clear maturity date, supporting the peg and creating a fixed-rate yield opportunity. https://t.co/CLPZvJN2S8

I’d like to say alUSD is in a superposition between being a bond and a stablecoin. When it is on peg, it is VERY attractive to leverage. When it is under peg, it is a fixed yield and maturity bond. https://t.co/QZoYhdswEA