Alchemix (ALCX) is a decentralized synthetic asset protocol that allows users to create self-repaying loans by depositing yield-bearing collateral (such as staked
ETH or other assets) to mint synthetic stablecoins called alAssets (primarily alUSD). Founded in 2020 by the Alchemix team, the protocol automatically repays the debt over time using the yield generated from the collateral, eliminating the need for manual repayments or liquidation risk under normal conditions. Users can borrow against their assets while continuing to earn yield, and the ALCX token powers governance voting in the Alchemix
DAO,
staking for protocol fee shares and rewards, and incentives for liquidity providers. The entire system is secured by audited
smart contracts on Ethereum, with a focus on innovative
DeFi lending mechanics that provide passive debt repayment and capital efficiency for long-term holders and yield farmers.
When Did Alchemix Launch?
Alchemix was founded in 2020 and launched its mainnet and ALCX token in early 2021, quickly gaining popularity for its groundbreaking self-repaying loan model during the DeFi boom. The project faced challenges during the 2022 market downturn and protocol incidents, leading to security upgrades and improved risk management in 2023. Major milestones include expanded collateral support and alAsset integrations in 2024, and 2025 developments such as enhanced yield strategies, governance improvements, and cross-chain capabilities, achieving renewed adoption, TVL growth, and community support by December 2025.
What Are the Key Features of Alchemix?
Alchemix features self-repaying synthetic stablecoins (alUSD) backed by yield-bearing collateral with automatic debt repayment using generated yield, no liquidation risk for borrowers under normal market conditions, staking for ALCX holders to earn protocol fees and rewards, governance through the Alchemix DAO for treasury and parameter decisions, audited smart contracts with multiple security reviews, and support for various yield-bearing assets including staked ETH, providing a unique DeFi lending experience focused on passive debt management, capital efficiency, and long-term user alignment.
What Is ALCX Used For?
ALCX is used for staking to earn a share of protocol fees and rewards from alAsset activity, voting in Alchemix DAO governance on upgrades, treasury allocation, and new collateral integrations, providing liquidity in pools for additional yields, participating in incentive programs and farming opportunities, and accessing premium ecosystem features related to alAsset borrowing and yield optimization.
What Is the ALCX Token Utility?
ALCX serves as the staking and governance token for the Alchemix DAO, granting weighted voting power on protocol decisions, treasury spending, and feature development, capturing real economic value through the distribution of protocol fees to stakers as sustainable rewards, incentivizing liquidity provision and long-term holding through reward multipliers, enabling fee shares from synthetic asset operations, and funding ecosystem growth through treasury allocations for development, security audits, and new collateral and yield integrations.
What Blockchain Does Alchemix Operate On?
Alchemix operates primarily on Ethereum for core smart contracts, synthetic asset issuance, and yield-bearing collateral management, with multi-chain expansions and bridges for broader collateral support and liquidity access.
What Are ALCX Tokenomics?
ALCX has a capped maximum supply designed for long-term scarcity, with controlled circulation managed through vesting schedules and community reward distributions as of December 2025. The allocation prioritizes staking rewards and governance incentives, liquidity mining programs for adoption, team vesting over multiple years for alignment, treasury reserves for ongoing development and security, and marketing initiatives, with deflationary mechanics through fee burns and ecosystem buybacks to support sustainable token economics and value preservation over time.