- Poap will be given soon ™ when gorby has a system built
- Roadmap shared here; https://alchemixfi.medium.com/alchemix-roadmap-f569ae958623
- We went through the road map sections 1 by 1 then answered questions
Deploy V2
V2 update/overview
- Heads down crunch time to get it all frozen, documented, tested, adding as many extra features as possible until nov 1st deadline with runtime verification
- After submission, devs will make sure the front end is ready then deploy a testnet for the community to test (exact testnet network tbd but will be accessible, users will get fake tokens). Devs want everyone to play around and try to break it.
- N4No has been leading UI effort and it’s beautiful and makes scoopy [redacted]
- Biggest change to V2 is you can have multiple collateral types for the same alAsset. Ie stETH can be used for alETH, any supported stablecoin will use alUSD, etc. Definitely targeting the 3CRV trio of tokens, looking at other decentralized stablecoins out there. Targeting ones with the [I missed this, I think multi-collateral?] strategy - LUSD, MIM, etc, will take a harder look at frax, ust, fei, but would like to get those involved
- For each collateral type there’s an ever-growing list of strategies - in V2 you can pick from yearn, aave, a number of others that will keep growing. We will not be chasing the hottest yield aggregators as they get exploited quite often.
- For each collateral type you can select different strategies so you can build-your-own yield aggregator (choose your own adventure).
- The goal is that for all top yield aggregators, if alchemix supports the aggregator, then there would be no reason to use the aggregator and the user would just use alchemix instead.
Delegated Credit - Delegated credit is another big feature - derivad is running point, so he explained
- With delegated credit we can build applications which we can give permission to to draw on behalf of our CDP - so for ex a dAPP could withdraw credit on your CDP for the app to function
- Collateralized credit auctions will also use delegated credit (see later on in notes for more info about these)
- For example, using streampay - if you need to pay netflix 15/month - instead of them billing you on your bank account, it could draw that amount in credit from your CDP.
- You could also send people your credit, such as your kids, and you can set a limit of how much credit they have. Give money to charity, just give them credit line that keeps replenishing.
- Major benefit over something like sablier is that you only give them your money when they need it, instead of needing to lock up the full amount and then let sablier let it trickle out. Ie, it removes the idle assets. Streampay’s goal is to completely overtake sablier.
- For delegated credit, you give erc 20 approval and you can approve an amount to an address which it can draw - you give dapp infinity approval then within the dapp you would probably specify more specific variables. Ie, delegated credit is the tool that dAPPs are built one, which can then specify the constraints.
- Another ex: Imagine an options protocol that integrates with delegated credit - instead of having to constantly top off your account to meet your funding rate, it could just periodically draw from your credit.
- For fees - since you approve another contract to draw funds, it should do things automatically on its own. There’s also the “permit” functionality which is an off chain signer message, which is another option vs 2 on chain txns.
- Delegated credit works both ways - it can delegate credit, or you can use your credit to pay off their loan!
- You can do custom contract routing through as many contracts are needed
- Users are worried about fees for doing things like netflix pay, etc. Scoopy understands that often only dolphins / whales can benefit from the capital efficiency alchemix offers - but multichain is on the roadmap to resolve this and make alchemix more functional for shimps as well.
Decentralize
- Currently alchemix is a ⅝ multisig and a snapshot governance - been trying to run it like a DAO as much as possible but at the end of the day it’s still pretty centralized and there are trust assumptions. The goal is to end that paradigm.
- Snapshot has developed safesnap - let’s us queue up an admin function (like upgrading a smart contract, changing a variable, sending a txn) - right now this would be thru the multisig, but with safesnap we would queue up the txns on the safesnap gov module then everyone can inspect while the vote is active, dev ops team can also inspect,
- Want to make community contributions more official - working with coordinape. Works like this: everyone gets a give(gift?) token. Based on what people do, others can give the give/gift tokens to others based on who they think should get paid. Based on what tokens individual users have received (unsent tokens are burned), they will get a payout for their work. There are some rich data visualization tools inside of coordinape that makes it easier to catch bad actors / cartels / etc so they can be kicked. This is good for small part time member contributions.
- We’ll have a separate grant program where someone can propose something they want to build related to alchemix - the dao can vote on if that proposal gets funding, then the person is expected to go ahead and build the thing. Since v2 is built with composability in mind, sky’s the limit!
- Not all governance would have to be on-chain with safesnap - so can still have DAO decision proposals, but all shipped code would go thru safesnap.
- The dev team is still usually the ones who queue up the transactions. There are dangers with non-core developers shipping code (look at compound)
- Coordinape is closed beta but alcx has beta access
- Chains at the bottom listed for L2 are not in any specific order
- Getting the treasury wallets more decentralized is a big priority/
AlchemixDAO
- the DAO itself is being designed by the devs but they plan to take a lot of community feedback on how it gets designed/gamified.
Insurance Module - in place for if there’s a crazy event or hack or something that causes a loss in the protocol
- When you stake in the DAO there will be a 10-day unstaking period (same as AAVE)
- If a crazy event happens, all staked users will have to vote on if they slash or not. Ie a 1 mill hack that might slash 1-2% may be NBD, but a bigger event would require much more debate/discussion.
- Obviously we don’t want this to happen, which is why we’re partnered with runtime verification
- There will be a governance module that handles voting and execution on chain
DAO gamification - when you deposit ALCX, you earn a resource called materia points
- Materia points deposit in the ledger itself - not a token. When the DAO vote comes you can boost your vote by spending materia points. Contentious decisions down to the wire can be boosted with materia points, users in the DAO longer will have more points.
- Can save up materia points to convert them to materia shards (instead of boosting votes). There will be a farming contract, it will be similar to veCRV boost. Shards can be used to boost rewards, and will be erc 20 so can be traded.
- You will have a DAO character with your account (likely will not launch immediately with the DAO because of scope creep), NFT that has equipment slots that you can equip with other NFTs. It’ll be a visual representation of DAO status, it’ll be able to increase clout (more materia point generation), and it will boost your reward rate within the DAO. Users contributing and participating will get more materia shards.
- Then the vision would be to evolve this further, but that’s getting into the 2023 vision.
- Legends probably won’t have DAO utility but could be a coupon to get some swag like unisocks. Patrons have metadata, could deposit that into a staking contract to get more materia shards. So patron nft will likely have more DAO utility because of the metadata.
- How long after V2 can we expect the DAO and staking to be live? Answer: It's gonna require a lot of work - won’t take nearly as long as V2. Targeted Q1 or Q2 2022, but no promised deadlines.
- Around the time of V2 - more info will come out. But impossible to plan more than a few months ahead cuz of how quickly defi moves. So will always deal in generalizations for stuff further along.
- Scoopy’s rationale for the DAO as is - could just copy veCRV - but it makes you a prisoner for 4 years and scoopy doesn’t like that, but he likes how it rewards your time commitment, so this balances that.
- There will be a tokemak NFT for core voters, and that will also have metadata attached that could work similar to the patron nft. The alchemak.
- After V2 devs will look for more team growth
- POAPing process is being streamlined which will make future poaps faster. TBD if poap for one today, probably will be.
- Will strongly consider giving some groups of users initial materia points or shards (in addition to ideas of getting permanent boosts), nothing is official right now just ideas.
- The Ideal voting scenario is gasless voting, if there has to be on chain voting we’ll probably want dao module on layer 2 like arbitrum
V2 Modules
- Derivad is a mad behind the scenes genius - this is just a taste of them. One is the boost users idea:
Boost Users - There was a discussion related to this in the future revenue share governance proposal thread
- Idea is users would lock up collateral to donate their yield to the protocol for ALCX in return
- It’s the industry standard of liquidity mining, like compound and aave.
- You give ALCX tokens as incentivize to attract TVL and protocol revenue.
- So in this case people would deposit stablecoins, ETH, etc - they would give up their yield and alUSD credit, but would get ALCX tokens for their yield instead. You get ALCX, protocol gets your yield.
- This is good because it mimics the transmuter, where it will improve user repayment rates (faster and better yield rates across the board for everyone), which improves the protocol usability enormously and gives us a competitive edge against other protocols with lower yield payouts.
- It also increases peg stability because we aren’t introducing new alAssets into the system and the backstop gets filled
- Also makes numbers go up like TVL, which increases protocol revenue, which would hopefully reflect upon token price and increase revenue when staking ALCX.
- Could also reward users with materia shards / points instead of ALCX to reduce downward pressure on ALCX.
Other alAssets - Other alAssets considered are still a secret
Auctions
-could create a grouping (lot) of NFTs and erc-720s - send these NFTs, etc to a contract. So say you have a crypto punk - what’s it worth? It’s worth what you can sell it for, or worth however much credit you can draw against it. So someone could put up their crypto punk as collateral, and then a user could offer them loan terms - if owner defaults on loan terms, then the punk is given to the lender. This Unlocks NFT loans. It’s like walking into a pawn shop - I’ve got all these NFTs, don’t want to sell, but I want temporary money - they can give you temporary money on terms, if you don’t meet the terms, then they keep your collateral. - Difference between application and auction - the application is where the owner specifies the terms of the loan they want. The auction model is the credit providers proposing the terms. So there is price discovery in both.
- All this credit delegation functionality means maxing out the loan is no longer the only use case, so don’t need to split the CDP up, instead, cap the capital used in use cases
- Could also pay with your wallet instead of credit delegation, but delegation makes more sense cuz you can send an offer in, but the gas cost would be to the person accepting the offer, which makes it nice.
- Alchemix Devs have these dAPP ideas - DAO can create grants to make it happen or onboard more devs. Just a matter of priority list, so it’s nice to put the ideas out there for the community to build where possible to have them built sooner than later. As part of the grants program, there could be a hackathon competition for community to vote on best ones to win grants.
Streampay - Stuff like this exists, but you have to lock up your collateral that then trickles out as payment. With credit delegation the collateral is still earning yield up to the point where it’s sent.
Other Stuff - Testnet will be V2 - butler asked for it sooner than later. Have to make fake contracts for yearn, etc. Have to basically build a simulation, but still useful for team so it’s something they want to have but don’t want to promise it. There will definitely be one for testing UI, etc for the community to play with prior to V2, or put keeper buttons on testnet for people to build on. There will be in depth developer docs for V2 and an SDK so users can easily grasp how to build on alchemix. Whitelist for V2 is still up to runtime verification, right now there’s a kimbo mode where we launch with a whitelist and then have a kill switch to turn it off and make it permissionless.
- Ideally DAO will be on l2 like arbitrum to make it affordable to use. Better to wait to choose to have a better idea of “winners” and “losers”. Need to reflect DAO decisions on all chains, etc. With any luck there will be multiple right answers which makes the choice somewhat arbitrary. Still heads down on V2 though so plenty of unanswered questions for future fireside chats. Solidity native L2s are probably best. Ie if ZkSync launches early enough, then that may be the best of both worlds (optimistic rollups have the 1 week bridge back to mainchain unless a 3rd party bridge is used, which makes message passing delayed. Zk rollups could solve that).
Recipe Book - Will have strategies to generate yield - definitely some users will go all in one strategy, but scoopy imagines a lot of choices as more and more things become available. If you’re in the UI you could be overwhelmed by the choices, so the recipe book would be curated combinations of strategies (tbd if these are published by alchemix or by users). Recipe book is beginner vs advanced mode. Recipes are preset - ie don’t change.- though other other yield providers could just manage it all for you.
- Likely can’t use non-uponly strategies because then liquidation would need to be enabled. Maybe 90% uponly strategies could be enabled.
- Changing yield strategies will be very limited friction
- Butler asked about a checklist of what we would need to be fully autonomous to mitigate regulatory risk when protocol rewards are turned on
Regulatory Stuff - There are some people in the core team who are concerned with some of the regulatory FUD
- The DAO has insurance as a last resort model and users have something at stake, which gives us more plausible deniability of being a security
- And the DAO is managing it and no one on the core dev team has superpowers to do anything
- So that could theoretically mean we don’t meet all the standards of being considered a security
- Reve sharing TBD if that happens when DAO is active, honestly do not know right now.
- Will not have a dedicate channel for regulatory discussion as it starts becoming legal advice. That’s why devs will often abstain from commenting on tax advice, etc too.
Multichain
- Once V2 is complete and launched, the goal is giga expansion mode into all EVM compatible chains that have all the required legos (ie, other chains need to have yield aggregators) - polygon makes a lot of sense, ftm because of yearn, abritrum needs some time but def want to do it, solana has compatibility to port over code, etc. BSC exists. Not betraying ethereum but if we don’t go multichain there will be forks so we might as well take all market share we can.
- To go multichain we basically mint synthetic assets and send/bridge them to bootstrap the various chains. Just need a yield aggregator to plug in.
- There’s a good chance we could get rewards from the newer L2s for coming over there.
- New synthetics - intend to do alBTC - but want to expand the product lineup as well (ALTchemix
) - various tokens will have alAssets - First one after alBTC already decided
- After that not entirely sure - would be cool to have competitions like the tokemak core event.
- For example - tokens with things like built in yield, like Sushi/xSushi, could be under consideration.
- Mim would be rolled into alUSD.
- Time for a couple more question before devs have to meet with the tokemak team
- Gorby is impressed by the community response on the tokemak thing
- Scoopy very happy we got the tokemak reactor and olympus pro, things are turning a corner
- Everything talked about here more or less also covered on the mission defi podcast in varying levels of detail
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