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Author: Admin | 2025-04-28
Loans using your collateral for yield farming on other DeFi applications.Alchemix takes self-paying loans one step further and will determine the future yield of your collateral will determine the crypto loan you get. The protocol tokenizes your interest for what your collateral could yield later. Alchemix pools user-deposit collateral and deposit them in other DeFi protocols. Then, it harvests the profits to repay everyone’s debts over time.To start engaging with Alchemix you must connect your crypto wallet to the protocol and have at least one DAI in your wallet. Users deposit DAI into a smart contract and receive a token in return that represents their future yield farming potential. This token, called alUSD, can be converted 1-1 into DAI via the Alchemix platform and traded on a DeFi exchange such as Sushiswap.The smart contract transfers the deposited assets to a Yearn vault, which mints DAI. Alchemix users’ alUSD debt decreases as the yield harvest increases. This means that eventually the loan’s yield harvest “pays back” the deposit.Alchemix users can create an alUSD coin equal to half the amount of the asset that they deposit. Alchemix has a 50% LTV (loan to value) if we translate this ratio into crypto loan terms. It only accepts DAI and ETH deposits at the moment, but it plans to accept other stablecoins in the future.5. Fulcrum Fulcrum is a DeFi lending platform that allows users to lend and borrow ERC20 tokens. It has recently added Polygon and Binance Smart Chain networks. The Fulcrum protocol will also mint iTokens (interest-earning tokens) when a new deposit is made. These DeFi tokens can be traded like any other token. The iTokens become more valuable as there is more interest that it collects over time. Moreover, the iTokens can be used as collateral for borrowing from the protocol.
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