Earlier this year, Flipside Crypto debuted community-enabled analytics for the Alchemix protocol, including bounties, data and more.
And while our bounty program may have ended, activity on Alchemix certainly hasn’t — and neither has our data. So, with that in mind, it’s time to take a dive into recent activity and on-chain events on Alchemix. H/t to @0xdef1, who put together the visualizations used in this piece.
In the weeks following its debut earlier this year, Alchemix began making waves as a new lending protocol that raised $4.9M. Its special sauce: loans that repay themselves automatically.
In the weeks and months since, Alchemix has attracted plenty of attention. In June, for example, Alchemix announced the debut of alETH, their synthetic token backed by ETH. This launch, however, also coincided with what the Alchemix team called an "incident with the Alchemix alETH contracts."
How has this recent news impacted activity on-chain? With the help of Flipside’s on-chain data and visualizations from @0xdef1, we can see user behavior on Alchemix.
As we can see in the graph below, deposits into the Alchemist, the primary way users interact with Alchemix, spiked leading up to the launch of alETH on June 2. While there was a slight dip in the number of deposits following the “incident” and pausing of alETH vaults, deposits soon rallied. They peaked at more than $309 million on June 11 and remained above $260 million in the months since.
Somewhat similarly, the supply of alUSD, the stablecoin minted by users taking loans on Alchemix, has skyrocketed in recent months. This is also likely due at least in part to volatility surrounding the launch and pause of alETH.
After suffering a serious downturn in mid-May of this year, likely caused by general volatility in the market, alUSD supply has since hit an all-time high. As we can see below, alUSD supply hit a low point of $205.4 million on May 2 before rising to more than $274 million the next day.
Supply levels held steady at roughly that number until June 6. That's when the supply started to rise to its new all-time high of nearly $450 million on June 15. In the months since it’s fallen to roughly $380 million, still higher than any point this year.
Interestingly, transmuter balance has not followed these same patterns. Its volatility, however, can also be traced back to issues surrounding alETH.
The Transmuter couples the life cycle of alUSD and backstops the peg by guaranteeing that all outstanding alUSD can be converted 1:1 to DAI. It’s used to turn alUSD to DAI via the proceeds from loan repayments. Then, when that DAI is eventually claimed, the staked alUSD is burned.
As we can see in the graph below, Transmuter balance reached a peak of just under $270 million on May 9. It then tumbled hard to $114.6 million on May 23. The balance increased to hit a new all-time high of roughly $295 million on June 16 before once again quickly falling. This was likely due to the issues with alETH.
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