Alchemix is a decentralized finance (DeFi) protocol that allows users to take out self-repaying loans. Users can deposit collateral (like stablecoins) to mint alAssets (e.g., alUSD), which are synthetic tokens pegged to the value of the collateral. The deposited collateral is then put to work in various yield-generating strategies, and the yield earned is used to automatically pay down the user's debt over time. This system allows users to access liquidity without selling their assets and without the risk of liquidation from price volatility. The protocol also includes components like the Transmuter for maintaining the peg of alAssets and the Elixir AMO for managing protocol-owned liquidity. Alchemix operates as a DAO, governed by ALCX token holders.
