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AladdinDAO Boule Candidate

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Cody W.

Trader @ CMS Holdings

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Background

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Current: Trader @ CMS Holdings (www.twitter.com/cmsholdings)

Previous: Trader @ Circle OTC (www.circle.com)

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In crypto full time since beginning of 2018

Investing/trading crypto personally since 2016

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Alchemix (https://alchemix.fi/)

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  • Synthetic future-yield-backed asset platform and community DAO
  • Essentially allows you to take an advance on your yield
  • You can use this “future-yield” any way you want
  • Don’t have to worry about liquidation, as debt will always be going down

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*Disclosure: CMS Holdings is an investor in Alchemix. Purely for demonstration purposes, not financial advice, etc.

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Vaults

  • Vaults are the center of the protocol, enable you to deposit assets and mint debt against it
  • DAI → alUSD (borrow up to 50%)
  • ETH → alETH (borrow up to 25%)
  • Collateral is deposited into yearn vaults for yield
  • This yield automatically pays down any debt you mint, or increases borrow limits if no debt

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Vaults (continued)

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  • Users can pay back debt any time, unlocking collateral
  • Can liquidate collateral to repay debt any time
  • Essentially a flexible line of credit on future yield

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Transmuter

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  • Allows users to always swap alUSD → DAI and alETH → ETH 1:1
  • Useful if alUSD price on Curve (or other venues) falls below 1 for any reason
  • Deploys its capital into yearn vaults to boost yield for depositors

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What to do with the debt?

  • There are farms directly on app.alchemix.fi/farms, where you can get rewards in ALCX
  • Also external farms for LP tokens on Saddle, Sushi Onsen, mStable
  • Or trade synthetic assets on Curve/Saddle to stables or WETH and farm anywhere
  • Farm with ALCX rewards in Alchemix, Pickle Jars for automated compounding, etc

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APY

  • What assumptions are being made to arrive at these numbers
    • Price of reward token, emission rate (X tokens per day/block/etc), TVL in pool, compounding
  • Can be highly variable, especially price of reward token and TVL in pool
  • Emission rates often scale down over time, naturally lowering APY
  • APR is base rate without compounding, APY takes into account compounding (usually daily)
  • Every farm is different

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Risks

  • Only farm with money you can afford to lose
  • Even established protocols have risk - exploits happen
  • A lot is still experimental and new attack vectors could form over time
  • Yield is high in crypto for many reasons, be aware of where the yield comes from