Breaking down the new projects Lido, Alchemix and Liquity, and why they are worth watching

A brief analysis of the operating mechanism and investment logic of Lido, Alchemix and Liquity.

The first demand is to get rich. The dog ah shi ah pig ah and so on, figure a fun, whether or not, nothing much to study, and nothing to Fomo or despise, and this out-of-the-loop effect is actually able to bring a large number of newcomers, including I was also consulted by people outside the circle of such projects. The best way to feel the temperature of the pool is to go into the water and try it out, but you can’t see the temperature by watching the water from across the river.

Obviously can feel the market recently on the new on-line some of the projects of the tired state, is a new project listed, for example, private placement up 10 times 20 times, if it is last year you may say crap awesome, what I study under, this year is on-line, up, may simply say a sentence, oh. Turn the head on forget, will not go again to seriously open the site to study the next, because the routine are familiar with, is through the control of the circulation plate to maintain a high valuation, the rest of the road, either need a time digestion period and then by virtue of the late business take off, slowly do the project up; either is the follow-up in the industry slowly lose competitiveness, the rest is a variety of unlocking a variety of smash plate, slowly look at the project you have to learn to see the whole plate Valuation, do not just look at the circulation plate, leaving aside the valuation only talk about circulation is a liar, why some projects the more up the valuation will be lower and cheaper, why some projects on line is the peak: growth determines everything. Market projects into the burst period, many are seen in the financing news, and then there is no then, too much of the same project, and not much novelty, this is actually rather favorable to each track leader. No competitive projects only live in the world of benchmarking, and it’s hard to remember what you’ve done, let alone use it.

Let’s get back to the point and talk about the next few that look relatively good.

Lido: Paradigm’s heavy involvement became the trigger for Lido to take off. In fact, with the gradual approach of ETH to POS, the Staking market will gradually surface, and not only ETH2.0, many POS projects such as Dot, Ada, Atom and other familiar heavyweight projects will face the explosion of the new economic model of Staking, which unlocked trillions of Staking market Lido is based on ETH2.0.

Lido is built on ETH2.0 Beacon Chain, users do not need to lock ETH while getting Staking revenue, they can get stETH 1:1. The key to the project is the ecological construction, that is, the exchange of stETH needs to be recognized and freely used by other projects (e.g. stETH can be minted in MakerDAO). The key to the project is the building of the ecology, that is, the exchange of stETH needs to be recognized and freely used by other projects (such as stETH can be cast in MakerDAO DAI). And private equity and team share is large.

Breaking down the new projects Lido, Alchemix and Liquity, and why they are worth watching

Alchemix: Future cash flow is brought to today, which is sometimes amazing when you think about it, an interest-bearing asset / collateral stands on the side of time and becomes cash. Users can borrow up to 50% of their DAI deposit by depositing it into Alchemix smart contracts (aka Vaults) and casting alUSD 1:1, with no liquidation risk, and the loan is repaid through the interest generated by ydai.

Let me give you an example, for example, I need money to pay my electricity bill or to buy a car, I need about 50,000 Dai, but I don’t want to sell any of my assets, including stablecoins, so now I can do it through Alcx: I deposit 10W Dai into Alcx vaults, so I can borrow 5W alUSD, my 5W alUSD can be used to pay electricity bill or buy a car, immediately available, according to the current income situation I only need to wait for about 3 years, I can rely on yDai income to automatically repay the loan, after 3 years of debt repayment my 10W Dai can get back, of course, you can repay at any time during this period.

Breaking down the new projects Lido, Alchemix and Liquity, and why they are worth watching

Scoopy, the founder, also explained

Essentially, Alchemix is a customer data platform (CDP system) built on top of YFI. Users deposit DAI (and other stablecoins) into Alchemix to get alUSD. alUSD is a cryptocurrency based on liquidity mining gains.

Unlike Alchemix, it is very flexible. There is no minimum lock time or expiration date. Positions can be exited at any time by paying off alUSD debt with alUSD or DAI.

  1. YFI generates earnings that automatically pay back the debt.

Alchemix releases YFI proceeds in the form of a synthetic asset, alUSD, which is also a debt, freeing up liquidity from the stable coins mined in YFI and redeemable at any time.

Of course Alchemix has some other uncertainties, such as the stability of the revenue capacity, the anonymity of the team, the long-term stability of alUSD 1 USD, the richness of alUSD usage scenarios, and the security of the contract itself, etc. Let’s look at the problem with a dynamic vision of development, after all, it is not easy to do innovation in the current DeFi system, the token The overall valuation is relatively high, but the benefit is that a large number of tokens (80%) will be given to the community in the future, and the single coin APR is 166%. This is different from Lido.

Alchemix token allocation.

60% of the tokens are given to the community, and this part is mainly obtained through four Staking methods

Alchemix DAO organization: 20%, of which 5% will be used for bug bounties and 15% will be acquired after 3 years and the community will decide what to do with the tokens

20% of the tokens are distributed to a pool exclusive to the development team. The project explains that this action is mainly to attract more developers to the Alchemix ecosystem, where developers can submit proposals for potential DApps or ecosystem/infrastructure applications, and if approved, will receive financial help, while all tokens are produced non-linearly over three years.

Breaking down the new projects Lido, Alchemix and Liquity, and why they are worth watching

Liquity: improved version of MKR it, lower collateral rate, that is, ETH release more productive capacity, and MKR there is not the same is the loan is interest-free, instead of the user in the borrowing with a 0.5% rate instead, we are now easier to understand this kind of project, because there is MKR, COMP, AAVE of Market education, and the product is also simple, the project as a whole needs some time to digest the high valuation on line and expand the margins in the industry, the current yield of about 30%, taking into account the 200% collateral rate, single currency ETH yield is 15%, can be compared with stETH yield, but this is relatively simple.

Breaking down the new projects Lido, Alchemix and Liquity, and why they are worth watching

There are several Pendle, Degate, Trubit also focus on the next and more products out, think of where to write it, enjoy it.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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