Summary:
Proposal to add ALCX/ETH 80/20 to the Balancer Gauge Controller, which, if passed, will become the primary liquidity for the Alchemix governance token and will serve as the basis for the future roll-out of veALCX. Pool deployed here. Gauge with 2% emissions cap deployed here.
References/Useful links:
Link to:
• Website
• Documentation
• Github
• Discord
• Other useful links: https://alchemix-stats.com
Protocol Description:
Alchemix is a future-yield-backed synthetic asset protocol that gives users advances on various yield strategies via a synthetic token. Alchemix loans are self-repaying, interest-free and non-liquidating. Today, Alchemix offers various strategies to borrow against select USD-pegged stablecoins (alUSD) and ETH (alETH), with the intention of launching other synthetic tokens in the future.
ALCX is the governance token for the community DAO.
Motivation:
As part of the planned roll-out of veALCX, Alchemix would like to request a gauge for the newly created ALCX/ETH 80/20 pool.
The Alchemix veALCX system will have a few differences in comparison to existing ve-models - details can be found here. The basis of the system will be staking for veALCX through 80/20 Balancer Pool Tokens. As such, the 80/20 ALCX/ETH pool will become the primary source of liquidity for ALCX on-chain, and it should drive significant volume and fees to Balancer and veBAL holders. For reference, the current primary pool on Sushiswap had (before migrating POL to Balancer) $8m TVL and, on average, generates >$500k in volume per day. While the new pool composition will likely affect these numbers, the total TVL in the pool should grow as well with the introduction of the ve-model.
Deployment of veALCX is still a while away; the exact launch date will depend on audit results. However, Alchemix would like to already start migrating the existing liquidity pool to the new 80/20 ALCX/ETH Balancer pool in anticipation of this launch.
Specifications:
-
Governance:
• Governance is conducted via forum posts and Snapshot voting
• There are two multisigs on Ethereum mainnet. The protocol treasury 24-hour timelock multisig. An operational (developer) multisig that is used to pay for expenses and execute transactions, and that holds LP positions and strategic assets. -
Oracles:
• The core protocol does not rely on oracles.
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Audits:
• Alchemix v2 has been audited by Runtime Verification as well as a public audit via code4rena. The protocol also offers a bug bounty programme via Immunifi.
• More details can be found here.
• ChainSecurity is currently engaged to audit the veALCX contracts. -
Centralization vectors:
• No centralization vectors exist in the core protocol beyond the multisigs described above.
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Market History:
• As a governance token and an unpegged asset, ALCX has experienced volatility since its launch.
• The current main source of liquidity is on Sushiswap, but ALCX is also listed on major centralized exchanges, such as Coinbase and Binance.
• The new Balancer 80/20 pool has been deployed recently and does not have a market history yet. However, Alchemix has seeded the market through a POL deposit (~$3.7m) described here. -
Value:
• The newly created 80/20 pool will become the primary source of liquidity for ALCX on chain. We expect that it will drive significant added value to Balancer, as the ALCX/ETH BPT tokens will be needed to receive veALCX and in order for users to participate in Alchemix governance, gauge voting, and boosted yield.
Contracts:
Link to pool
Link to gauge
The DAO Multisig 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will interact with the AuthorizerAdaptor at 0x8F42aDBbA1B16EaAE3BB5754915E0D06059aDd75 and call performAction with the GaugeController at 0xC128468b7Ce63eA702C1f104D55A2566b13D3ABD for the target(address) argument and using 0x3a04f900 followed by the gauge address 0x183D73dA7adC5011EC3C46e33BB50271e59EC976 and the corresponding gauge type for the data(bytes) argument.
data(bytes): 0x3a04f900000000000000000000000000183d73da7adc5011ec3c46e33bb50271e59ec9760000000000000000000000000000000000000000000000000000000000000002