Finance

DeFi: Alchemix Finance enters the race for Layers 2

In alchemy, it is the fundamental law of equivalent exchange – Alchemix Finance is a DeFi protocol that originally launched on the blockchain Ethereum. But its high transaction fees are often a barrier to entry for individuals with small wallets. The team is therefore preparing to migrate its DeFi protocol to more accessible blockchains, in order to reach as many users as possible.

Alchemix the DeFi protocol that would make Panoramix jealous!

Alchemix Finance allows you to deposit your funds in one of its vaults available in AID, ETH, USDC and USDT. Then the protocol will automatically deposit your funds in one of Yearn Finance’s vaults. In exchange for your deposit, you can borrow 50% of the amount deposited in buyUSD which is the stablecoin of the platform.

The main interest of the platform is that you will not need to visit the site regularly to compound or claim your rewards, since it’s the protocol that takes care of it and repays your debt automatically. If you want to know more about the Alchemix Finance, you can go to the CryptoFarmeur channel.

One of the main problems, as with many dApps present only on the Ethereum network, is that transaction fees can be a barrier to entry, which does not allow the individual with a small wallet to access it.

The Alchemix Finance team has understood the problem and will therefore offer multichain support for their protocol:

“Have high transaction fees kept you from harnessing the power of an Alchemix self-repaying loan? You’re not alone. »

Alchimix Finance

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Alchemix in the Land of Layers 2

The support for Layers 2 will be done gradually since it will be a question, initially, of making the tokens of the protocols compatible with the blockchains of second layer, whether it is the ALCX or the alassets (alETH, alDAI, etc…).

“As each new chain is considered safe to deploy both alAssets and Loan Agreements, we will look to diversify enough to cover the expanding DeFi ecosystem. »

Alchimix Finance

Then, in a second step, it will be a question of deploying Alchemix natively on the other blockchains.

For now, the team has not given information on the list of blockchains supported by Alchemix. If not Fantom, which is hardly surprising as we know the close ties between Yearn Finance founder Andre Cronje and the Fantom blockchain he once contributed to.

Although the protocol is not interoperable, that is, you will not be able to use the collateral present on your Ethereum network, to repay the debt you have incurred on the Fantom blockchain. The developers still seem to consider this characteristicwhether advances in the CCIP protocol are convincing. Because the security of its users and their funds seem to be the most important points for the Alchemix team.

Although the development team wants to branch out, they don’t seem interested in deploying on blockchains other than those that are EVM-enabled:

“Working exclusively on EVM (Ethereum Virtual Machine) compatible chains allows us to use the same trust contracts with the same high-level security audits that protect our users on the Ethereum chain. »

Alchimix Finance

Alchemix therefore seems to have fallen into the magic potion and wants to tackle a larger market: that of Layers 2. Which will probably allow it to gain more users and therefore traction.

It will be a long quest to find the DeFi philosopher’s stone. In the meantime, register today on PrimeXBT the platform for trading cryptos, but also commodities and currencies. Get a bonus of up to $7000 on your first deposit with our code 50DEPJDC (affiliate link, see conditions on official site).

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