I am thinking of different scenarios for using the Alchemix protocol. I am inquiring if this use case is possible and correct.
For understanding the protocol in simple terms as it is currently, a user can deposit DAI into the Vault and take out 50% of their collateral and let interest earned pay off the balance of the loan over time. Much like a “more favorable” cash secure loan from a bank, correct?
Now, if one chooses only to deposit DAI and not take on any debt, they receive interest in the form of credited alUSD to use on a future loan, right?
Is it possible for an individual to use this protocol as a fixed income strategy; in the form of a person depositing DAI and only take out the earned credit of alUSD on a set weakly or monthly schedule?.
Aside from the standard smart contract risk, gas prices, and one currency losing its peg, a variable would be the fluctuating APR on the yearn DAI vault, correct?
When taking into account risks and APR fluctuation, would there be any other apparent cons (excluding taxes)?
Thank you