Alchemix Secured $3.1M to Design DeFi Lending Supported by Future Income

By Tracy Hannes | March 27, 2021

New decentralized finance initiative Alchemix Finance has reportedly secured $3.1 million via a strategic funding round, from major crypto investments funds and angels.

Specifically, the round was reportedly led by Spartan Capital – the investment-focused division of crypto consulting entity The Spartan Group. 

Numerous names, nominally Delphi Ventures, Nascent, CMS Holdings, Maven 11, Genesis Block Ventures, were reportedly all participants of the round. Numerous other angel investors took part also, including Jason Choi, general partner at The Spartan Group.

Alchemix further managed to secure $4.9 million via an over-the-counter token sale, led by CMS Holdings and Alameda Research.

The Alchemix initiative is reportedly putting in work to design a new DeFi primitive, finalizing the integration of yield generation with a lending platform, which will ultimately facilitate loans drawing, based on future income.

In the initial iteration, users will reportedly be able to deposit Dai to draw alDai for a maximum 50% of the value of the deposit. The conversion of AlDai into Dai on a 1:1 ratio via the protocol or decentralized exchanges can be conducted as well. 

Backend-wise, Alchemix will reportedly send the deposited funds to yield generating protocols such as Yearn.finance. The yield secured from the platform will be directed to repay the alDai loan over time in an automated manner, with the protocol withholding 10% of the yield as revenue for its governance treasury.

“Alchemix is building a new DeFi protocol that enables users to tokenize their yield in a no-liquidation manner. We’re excited to see this evolve into a new primitive in DeFi as yield opportunities continue to mature.” Jason Choi reportedly shared his particular interest in the project’s no-liquidation loans and its overall innovativeness. 

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