Alchemix integrates with Chainlink to make DeFi loans a ‘set and forget’ thing
Alchemix can now become set-and-forget by using Chainlink Keepers, meaning a user can take out a DeFi loan, earn DeFi yield, and pay the DeFi loan back over time with their yield without any manual input.
Ethereum-based self-paying loan protocol Alchemix has integrated Chainlink keepers into its ecosystem to allow for even more seamless services on its DeFi platform, the Chainlink team shared in a release with CryptoSlate.
How Alchemix innovates DeFi loans
Alchemix routes user deposited collateral into Yearn vaults—on-chain yield aggregation strategies that chase the highest returns across the DeFi ecosystem. The returns generated are then used to repay user debt. As a result, users are effectively provided an advance on their future yield, increasing capital efficiency and resulting in a new “money LEGO” available for use in other smart contract applications.
Now, by using Chainlink Keepers, Alchemix is now truly set-and-forget, meaning a user can take out a DeFi loan, earn a DeFi yield, and pay the DeFI loan back over time with their yield without any manual input.
The team has also sponsored the launch of a new Chainlink Price Feed for our native token ALCX and our stablecoin alUSD to support their adoption as collateral across the DeFi ecosystem.
The launch of a Chainlink Price enables ALCX and alUSD to become easily integrated by any DeFi protocol in a secure and reliable manner. “By leveraging verifiable off-chain computation, Chainlink Keepers continually monitor time off-chain and trigger the vault harvesting and vault flushing process each day on behalf of users in a reliable and low-cost manner,” the team explained its decision to use Chainlink, adding:
“This helps provide users greater assurance that their positions will be continuously paid down over time, without any manual interactions from themselves or the Alchemix team.”
Some of the unique benefits of Chainlink Keepers include high uptime, low costs, decentralized execution, and expandable Computation.
Chainlink price feeds for alUSD
In addition to using Keepers, Alchemix has also sponsored the launch of the ALCX/USD and alUSD/USD Chainlink Price Feeds which are now live on Ethereum mainnet. Chainlink Price Feeds are secured by a decentralized network of secure oracle nodes that fetch financial market data from multiple premium data aggregators, resulting in highly available and tamper-resistant price updates with full market coverage that DeFi protocols can rely on to price assets on-chain.
The feeds have proven to be highly resilient against a multitude of unexpected situations like API downtime, flash crash outliers, and data manipulation (e.g. flash loans).
Protocols like Abracadabra Money have already begun to leverage Chainlink Price Feeds to support ALCX as collateral, enabling users to mint the MIM stablecoin against their ALCX. Furthermore, the launch of the ALCX/USD Chainlink Price Feed plays a key role in our work with Aave, where we are working to add support for alUSD on their decentralized money market.
In the future, additional Chainlink Price Feeds are planned, such as alETH, effectively using Chainlink as a money lego that helps make our native asset more easily composed within other DeFi applications.