Alchemix
AuditedVerifiedBattle-TestedAlchemix is the original self-repaying loan protocol — deposit yield-bearing collateral, mint alUSD or alETH at up to 50% LTV, and let the yield pay down the debt over time with no interest and no liquidations.
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The Problem
Traditional CDPs liquidate borrowers when collateral value dips, and standard yield strategies tie capital up without giving users access to its present value. There is no clean way to borrow against future yield without taking on liquidation risk and accruing interest.
The Solution
Alchemix routes the yield generated by a user's collateral directly into repaying that same user's debt. Since debt can only ever shrink (never grow with interest) and collateral cannot be force-sold, users get a non-liquidating, zero-interest loan against future yield.
Why it Matters
Category-defining mechanism: Alchemix is the original 'self-repaying loan' protocol, with no fixed maturity and no liquidation risk. Five years of live operation across three protocol generations, fair-launched governance token, and a Transmuter peg-defence design copied across the synthetic-stablecoin sector.
Protocol Metrics
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View allFrequently asked questions about Alchemix
What is Alchemix?+
Alchemix is a CDP protocol operating on Ethereum, Optimism, Arbitrum. Alchemix is the original self-repaying loan protocol — deposit yield-bearing collateral, mint alUSD or alETH at up to 50% LTV, and let the yield pay down the debt over time with no interest and no liquidations.
How does Alchemix work?+
Alchemix routes the yield generated by a user's collateral directly into repaying that same user's debt. Since debt can only ever shrink (never grow with interest) and collateral cannot be force-sold, users get a non-liquidating, zero-interest loan against future yield.
Is Alchemix safe?+
DeFi Sentinel rates Alchemix AA with a safety score of 82/100, indicating very low risk. The score reflects five risk dimensions: smart contract & technical risk, economic design & market risk, governance & centralization, sustainability & competitive position, and reputation & social trust. Alchemix has 3 audits on record. DeFi Sentinel's analysis flagged 1 high, 3 medium, 2 low risk alerts across Smart Contract & Technical Risk, Economic Design & Market Risk and Sustainability & Competitive Position. As with all DeFi protocols, residual risk remains and users should review the full risk breakdown before depositing.
What is the safety score of Alchemix?+
Alchemix has a DeFi Sentinel safety score of 82/100 (rating AA), last updated May 22, 2026. The score is computed across smart contract & technical risk (30%), economic design & market risk (25%), governance & centralization (20%), sustainability & competitive position (15%), and reputation & social trust (10%).
Which chains does Alchemix support?+
Alchemix is deployed on Ethereum, Optimism, Arbitrum.
Has Alchemix been audited?+
Yes. Alchemix has 3 audit reports on record from firms including Runtime Verification, Code4rena, Runtime Verification. Audit reports and dates are linked under the Resources tab on this page.