How to use Alchemix (ALCX): A Step-by-step Guide
This article will introduce Alchemix (ALCX) - a synthetic asset lending platform. We would like to give you clear instructions on how to use Alchemix (ALCX), including its core features: Lending, Borrowing, etc. and FAQ about Alchemix at the end of this article.
Alchemix Overview
Alchemix is a platform for the creation of yield-backed synthetic tokens that users can acquire for no cost in exchange for locking collateral in the Alchemix system.
Alchemix competitive edges are:
- Alchemix offers borrowers an exciting way of repaying crypto debts automatically. It utilizes the yields earned from the deposits from lenders to pay back their user’s debt.
- The golden rule to earn future yield is that the longer the traders keep their deposits, the greater yields they will earn, and subsequently, the greater amounts of loans will be paid back.
Preparation for trading on Alchemix
What are the prerequisites for trading on Alchemix (ALCX)?
First, users need to download the Coin98 Extension Wallet. For now, Alchemix only supports the Coin98 Extension Wallet, not the Coin98 Mobile Wallet.
Follow these steps to install the Coin98 Extension Wallet on Chrome:
Step 1: Find and select Coin98 Extension Wallet on Chrome Web Store;
Step 2: Click Add to Chrome;
Step 3: A pop-up notification will be displayed on the screen; please read it carefully. To approve, click Add extension.
Step 4: To use the extension, click the extension icon to the right of the address bar. If the Coin98 Extension Wallet is shown in the dropdown menu, it has successfully been installed and enabled in Chrome.
Tip: Pin the Coin98 Extension Wallet for easy access on the next visit.
Create an Ethereum Wallet on the Coin98 Wallet Extension
Before using Alchemix, users need to create an Ethereum Wallet. We recommend creating a Multi-Chain Wallet on Coin98 Wallet that contains multiple sub-wallets on different blockchains, and all of them are managed by only one single Passphrase.
After installing the Coin98 Extension Wallet, follow these steps to create a Multi-Chain Wallet:
Step 1: Open the Coin98 Extension Wallet and click Create Wallet.
Step 2: Set up a password by choosing between: Matrix Password and Text Password.
Step 3: After setting up the password, select the Multi-Chain wallet icon.
Step 4: Name your wallet and backup your Passphrase in a safe place.
- Tick the Back up your recovery key box, then copy the Passphrase to confirm you’ve saved this information.
- Tick the 2 remaining boxes to confirm you’re aware of the risks.
- Click Create Wallet.
Please note that the Passphrase is crucial to keeping your assets safe. You may lose your assets permanently if you lose your Passphrase, make sure no one else has access to it besides you.
Step 5: Paste the copied Passphrase into the confirmation box, then click Create.
After finishing, you can go to Manage → Manage All Wallets to check your Ethereum Wallet.
Preparing ETH for the gas fees
To make transactions on Alchemix (CYS), users must have some ETH. Users can buy ETH on a centralized exchange such as Binance and send them to the ETH wallet.
How to use Alchemix
Connecting Alchemix with Coin98 Wallet
Step 1: Visit Alchemix’s trading interface through https://app.alchemix.fi/. Click Connect at the top right corner of the screen.
Step 2: To use our Coin98 Wallet, under the Metamask icon, click Connect and then a Coin98 wallet window will appear, click Connect again to commence the connection.
Step 3: The connected wallet will be shown at the top right corner of the screen.
Depositing ETH on Alchemix
The current version of Alchemix allows traders to deposit either crypto DAI stablecoins or ETH tokens which then mint or create the stablecoin alUSD or alETH. In this article, we chose to provide ETH.
Step 1: Head to the Deposit tab, insert the amount you want to contribute and then click Deposit.
Step 2: Click Confirm to approve the transaction. Your collateral balance will show up as follows..
Borrowing assets on Alchemix
Step 1: Head to the Borrow tab, insert the preferred amount and click Borrow to confirm.
Step 2: Click Confirm to approve the transaction.
Repaying assets on Alchemix
Step 1: Select the Repay Tab, adjust the amount to repay, and click Approve.
Step 2: Click Confirm to enable the Repay function. The function has to be enabled first to start the Repay process.
Step 3: Click Repay then Confirm to complete the transaction.
Liquidating assets on Alchemix
Disclaimer: This step will use users’ collateral/ deposits to repay the alETH debt.
Step 1: Insert the preferred amount of collateral to start the liquidation.
Step 2: a warning message will appear, click Confirm
Step 3: Click Confirm again to complete the transaction.
Removing assets from Alchemix
Step 1: Head to the Withdraw tab and then insert the preferred amount to withdraw.
Step 2: Click Confirm to approve the transaction.
Swapping ETH to alETH
In case traders just need alETH and have no intention to use ETH tokens as collateral, Alchemix allows traders to swap ETH to alETH.
Step 1: Move to the Swap tab, enter the amount of ETH and click Swap
Step 2: Click Confirm to approve the transaction.
Farming on Alchemix
Alchemix also introduces some pools for traders/ holders to stake and earn ALCX tokens.
Step 1: Head to the Farm tab and pick the preferred pool. In this article, we chose alETH Saddle LP Pool.
Step 2: Insert the amount of alETH and click Approve
Step 3: Click Confirm to complete the transaction.
FAQ about Alchemix
How much are the gas fees?
Since transactions are conducted on the ETH blockchain, the gas fees are pretty high. When writing this article, the gas fees ranged from $10-$26 per transaction.
How long does it take for a transaction to go through?
It is pretty quick, most of them take under 30 seconds.
What are the use cases of alETH or alUSD?
Traders can swap alETH and alUSD to earn DAI, USDC and USDT or ETH on some exchanges:
- Curve Finance is the recommended market for instantly swapping alUSD with DAI, USDC, and USDT stablecoins. Besides Curve Finance, Zapper and Paraswap allow you to trade alUSD with almost any asset on Ethereum.
- You can also use Saddle Exchange to swap between alETH and ETH
Summary
This article has included the most critical and detailed information on the Alchemix (ALCX) Token. Please leave any questions you have below, and we will get back to you as soon as we can!