I'm a subscriber to the Modern Finance podcast and enjoy Kevin Rose's interview with various crypto personalities. You can find what I'm listening to right now here.
In this podcast, Kevin is interviewing the co-founder of Alchemix, a DeFi lending platform. Before listening to this podcast, I had a rough idea of what Alchemix is but didn't really understand how it was able to do it. Below is what I have learned so far in my hour or so research:
- A user deposits a stablecoin into the Alchemix vault
- The user is then able to borrow up to 50% of their initial deposit
- After a period of time (depending on the yield farming rate), the loan will repay itself
- The user can then take back their original loan amount
This all seems very compelling; especially when the loan repays itself. I'm not sure how sustainable high yields will be in the long run but perhaps in the short term this can work.
I plan on doing more work to learn about Alchemix and its (governance) coin, ALCX.
Additionally, Gemini this week started allowing trading of ALCX on its platform. This is positive news and I hope more attention goes into DeFi.
Finally, here are some stats about ALCX including a calculator to show how long it would a loan to repay itself.