ALCX Reactor on Tokemak
An ALCX reactor on Tokemak will strengthen liquidity for ALCX trading pairs across
trading venues and open up additional opportunities to leverage Tokemak. To initialize an
ALCX reactor, Tokemak requires an operational reserve of ALCX to be able to efficiently
deploy ALCX liquidity to trading venues and make ALCX LPs on Tokemak benefit from IL
mitigation. This can be structured as follows:
Alchemix to make 3M USD in ALCX available to the Tokemak reactor reserve by
proceeding with a DAO-to-DAO trade for 3M USD in TOKE:
• This collateral would allow Tokemak to source an initial 18M USD worth of liquidity (9M USD of ALCX + equivalent 9M USD of ETH)
• The acquired TOKE would make Alchemix DAO a powerful Liquidity Director. Read more about it here: https://medium.com/tokemak/tokenomics-4b3857badc73
• Generalized liquidity can be directed across the ecosystem, ensuring best prices and minimal slippage for ALCX trading
• Opportunity for both ALCX LPs and Alchemix DAO to earn additional rewards
Initiating a reactor will also result in additional ways for the DAO to leverage Tokemak. We propose that we make a new farming pool for tALCX. This pool would initially have 5% (and potentially more in the future) of weekly farming rewards allocated to it. This allocation would be taken away from the ALCX/ETH SLP pool’s rewards, resulting in the sushi pool receiving 53% of the weekly rewards. If the pool proves to be effective, we can progressively transition away from the Sushi pool and into the tALCX pool, and possibly even merging with the ALCX single side pool or tALCX DAO integration in the future. In doing so, it would confer the following benefits:
• Users that were previously single-asset staking now become LPs, further increasing ALCX liquidity across DeFi
• Simplified process to provide liquidity (effectively single-asset staking) and low risk should increase the willingness of especially less sophisticated holders to participate in LP
• Alchemix, as the tALCX holder, would be the recipient of a sizable amount of TOKE rewards, which could be either used to further increase LD power, or to supplement pool rewards
• ALCX rewards could be lowered as LPs benefit from IL mitigation and/or rewards are supplemented by additional TOKE rewards
A “for” vote signals that you are in favor of Alchemix pursuing a Tokemak reactor and to authorize a $3m token swap between ALCX and TOKE. An “against” vote signals that you are against both.
