Several people requested notes on the big brain conversation today (3/5/21 starting around 4pm PST), so here we go.
- A significant amount of Dai is in the transmuter, what if it was farmed for project revenue?
- Some needs to be available for transmuting, but not all of it
- Example: 85% farmed in yDai, 15% left as Dai for the transmuter on-demand supply. When Dai supply drops to low, single replenish action pulls from the yDai to get Dai back up the the correct level
- Similar to the Balancer <> Aave partnership, where unused swap liquidity is placed into aTokens until needed
- Transmuter yDai revenue goes to Alchemix treasury
- Revenue can be used for a ALCX Buy Back and Make/Reward program to fund project and ongoing farm rewards(more info)
- Adds buy pressure to ALCX, gives the treasury ongoing supply for farms and team vesting/project funding
- Discussion around future vaults:
- Rogueltachi’s heart as collateral -> alWaifu loan
- Self explanatory. Critical vault, wen v2
- Eth collateral -> alEth loan
- Strategies: short eth (swap alEth for different asset), or long eth’s yield (hold and speedy loan payback)
- New pegged asset increases transmuter asset pool with liquidations and yield
- Eth collateral -> alUSD loan
- Strategies: long eth (Buy more eth), or eth exposure + stables for anything
- Enables Alchemix to do loans similar to Aave, Compound, Maker, etc. Big market.
- Needs to handle for forced liquidation based on LTV
- Classic solution with liquidation bots having gas wars, and all the value going to MEV, is bad
- New MEV fighting and friendlier to user options exist
- Alchemix could have unique solution based on current liquidation system / mint-to-lend token
- Larger discussion around forced liquidation options/solutions needed
- Eth + Dai collateral -> alUSD loan
- Mixed collateral, 50% eth and 50% dai, taking out an alUSD loan up to 100% of the Dai value
- Eth collateral prevents recursion of Dai->alUSD->Dai->alUSD minting
- User retains eth exposure and yeild, and alUSD stays backed by equivalent amount of Dai
- Detailed summary here
Bullish takeaways:
- Alchemix demonstrates better model than whats used by the largest DeFi projects like Maker, Aave, Compound (airhorn sounds)
- Alchemix creating its own alTokens for loan withdrawals solves lender supply issues. Instead of lendable assets shortage and high interest rates, pushes token demand to the pair’s swap pool LPs
