What is Alchemix USD?
Alchemix USD (ALUSD) is the stablecoin of the decentralized platform Alchemix, released in February 2021. Its price is pegged to the US dollar. It is created through MakerDAO's DAI stablecoin. The maximum supply of ALUSD is 238751648. This means users deposit DAI into the network's smart contract and mint Alchemix USD till 50% of the provided sum of DAI at a 1:1 ratio. DAI works to generate yield. Similar to many ERC 20 tokens, alUSD can be exchanged. The Alchemix platform enables users to borrow loans, which pay themselves back automatically. It provides various liquidity mining options for alUSD owners that get ALCX governance token as a reward. After receiving alUSD as a loan, users can redeem the token for DAI, and then if they want, convert it into fiat. The system works due to a mechanism called Transmuter. It helps to keep price stability. There are two staking pools: The alUSD Pool and ALCX Pool. By staking one of them users can get the other token.