Is Alchemix Pointless for small investors?

ne0cultura

Hi all.
So, with ETH fees obviously being out of control, is there really any way to test the alchemix system without spending thousands first time around? Seems that this protocol is kind of neutered to those looking to test invest with anything under 4 figures.

Having (foolishly) tried to do such a thing with 50dai, i will need to spend nearly 75 dollars to get some alUSD into the pool system, and then the return looks to be around 30% on ALCX, but it's not really competitive with other offerings for yield farming on DEFI competitors, where you can get better returns in stablecoin pools to mitigate some risk. It seem pointless to undertake the transaction for such a small number- so with a bigger amount of alUSD what are you guys seeing as the best options on this platform?

I'd appreciate anyone's thoughts or any info people might have for the future- seems like the right moment was summer 2021...! You might expect there to be a youtube about this but there's not much recent new info on the state of the protocol, so if anyone can point me to some relevant info that would be great too.

Thanks, and good luck!

ov3rkoalafied

From a user perspective:
Right now: yes.
But we are aiming to launch on fantom shortly after v2 deploys on ETH mainnet. And then agressively expanding to other chains if that goes well. That being said, it's still not cheap to pull small amounts of money out of crypto into the real world as far as I know. So that will need to change for crypto to become useful for smaller investors - but that applies to all crypto and it gets better every year. So long term, I think alchemix can be used for small amounts someday in the future.

From an investor perspective - APRS are much lower now meaning you don't give up as much by keeping your ALCX on a centralized exchange. So buying ALCX on Coinbase in smaller amounts is probably the way to go for smaller investors if they want to buy in.

ne0cultura

Thanks for your reply- lets see what V2.0 has in store... Meanwhile, my 50dai is still worth 50Dai, so thats better than some other investments...!

MukeshKumar

It's definitely frustrating to see ETH fees skyrocketing, making it difficult for small investors to test out new protocols. One thing to consider is that you can try using a Layer 2 solution like Polygon or Arbitrum to lower the fees. Another option is to join a pool with other investors to reduce the transaction costs. In terms of financial planning, it's always a good idea to have a professional financial plan to manage your money. A financial planner can help you set financial goals and develop a plan to achieve them, as well as help you navigate the complexities of investing and tax planning.

ov3rkoalafied

MukeshKumar Alchemix is live on Optimism, fyi