Taking out a self-paying loan: Alchemix and the power of defi

Overview

Alchemix is a protocol taking the concept of programmable money to new levels. They’ve exploded onto the DeFi scene too. In two short months, the protocol has accumulated over $1 billion in value locked and $400M in liquidity across its stable coin pools.

So what is it?

It’s a protocol that allows yield to time travel. You deposit money in, the protocol puts your money into a yield farm, and you get all of the future yield up front in the form of a synthetic dollar loan.

And then you can do what you want with the money — use it for car repairs, pay off a mortgage, or ape into the latest Uniswap gem. (Maybe just buy more ETH)

The crazy part? Your loan auto pays itself back overtime.

That’s right: you don’t actually have to pay back the loan.