Deploy an alUSD Alchemist on Arbitrum with AAVE V3 strategies enabled for alUSD and alETH, and Jones DAO jUSDC vault (for alUSD).
Deploy an alETH Alchemist on Arbitrum with rETH, wstETH, and sfrxETH strategies enabled.
Collaborate with Ramses DEX to form liquidity, offering Alchemix substantial voting power in return for contributing TVL to Ramses DEX to help form liquid markets there.
The alUSD Alchemist on Arbitrum should utilize the following parameters:
- Accepted Collaterals: aUSDC, and jUSDC
- Max LTV: 50%
- Deposit Caps: Each collateral asset will have a $1m cap (after min 1 week of 100k, at multisig discretion)
- Repayment and Liquidation Caps: $500k per 60 minutes
- Maximum Loss: 5bps (0.05%)
- Cap Raises: All vaults are pre-authorized to have their caps increased to $5m
The alETH Alchemist on Arbitrum will utilize the following parameters:
- Accepted Collaterals: wstETH, rETH, and sfrxETH
- Max LTV: 50%
- Deposit Caps: Each collateral asset will have a 200 WETH cap (after 1 week of 50, at multisig discretion)
- Repayment and Liquidation Caps: alETH = infinite
- Maximum Loss: alETH = 200 bps (2%) (Max loss based on st/rETH to ETH price)
- Cap Raises: All ETH vaults are pre-authorized to have their caps increased to 500 WETH.
Ethereum Layer 2 networks continue to gain in adoption, TVL, and mind share. As part of the Alchemix multi-chain vision, the team has been evaluating various Layer-2 networks as potential candidates for the next Alchemix deployment. Arbitrum has emerged as a leading candidate in this regard, as it is the largest Layer-2 network by TVL, a hub for established DeFi protocols and innovation, and presents a large surface area for potential collaborations.
Any Alchemix deployment to a new chain requires the following:
- Compatible yield strategies;
- The ability to facilitate substantial liquidity on one or more DEXs to service loans;
- New Alchemist configurations, and ability to port other existing contracts such as the Transmuters and keepers; and
- The ability to bridge.
Initial Vault Strategies
With the integration of AAVE and ETH liquid staking vaults on Mainnet, Alchemix now has several existing yield strategies that can be ported to Arbitrum without much difficulty. In addition, the Alchemix core developers have begun development on an adapter for Jones DAO’s jUSDC vault to integrate an Arbitrum-specific option to earn yield. Jones DAO is a yield aggregator and vault protocol where users can enter various strategies to earn yield. The jUSDC vault is a passive strategy that allows users to lend USDC, serving as counterparties to another group of users that would like to lever up on GLP. For more information on jUSDC vaults see their documentation here: https://docs.jonesdao.io/jones-dao/features/understanding-jusdc-and-jglp
Partnership with Ramses DEX
On the liquidity side Alchemix will utilize Ramses to facilitate alAsset liquidity. Ramses is a (3, 3) DEX similar to Solidly and Velodrome. Ramses has offered to provide Alchemix with a veNFT, along with a substantial initial allocation of voting power to help get a liquidity flywheel started. For more information on Ramses see their documentation here: https://docs.ramses.exchange/introduction-to-ramses/what-is-ramses. As part of this collaboration, Alchemix will move some of its existing protocol-owned-liquidity to Arbitrum to seed Ramses pools for alUSD and alETH liquidity. (at the discretion of the Bizgov and operational teams) This collaboration will benefit both parties by increasing liquidity and fostering a mutually beneficial relationship. Alchemix will have a long-term goal of accumulating Ramses voting power.
Alchemists + Other contracts
The Alchemist parameters follow the precedents set by previous parameters for the mainnet LSD vaults, and the AAVE Mainnet launch. Deposit caps are significant but smaller than on Mainnet, with an initial “soft launch” period. Liquidation caps are also kept smaller, as the amount of arbitrage possible in the event of an underlying token depeg is a function of all liquidation caps combined. Other necessary contracts will be ported and deployed as is determined to be appropriate by the operational team. Bridging is undergoing an updated through Multifarm, but until this update is completed, the process will remain the same.
A vote “FOR” authorizes Alchemix to launch alUSD and alETH Alchemists on Arbitrum with AAVE V3 strategies and Jones DAO jUSDC vault integrated for the alUSD Alchemist, and AAVE v3 WETH, wstETH, rETH, and sfrxETH vaults integrated for the alETH Alchemist, utilizing the listed parameters AND authorizes Alchemix to collaborate with Ramses DEX to increase liquidity and voting power.
A vote “AGAINST” does not authorize Alchemix to launch on Arbitrum with the above parameters and partnership with Ramses DEX.