Alchemix Finance

Summary

Blueberry is a new multi-step aggregator that enables lenders to earn passive income while borrowers are able to take advantage of on-chain leverage into their preferred yield strategy. Blueberry would like to partner with Alchemix and create custom strategy vaults for Alchemix related pools. Blueberry asks its partners to seed a lending deposit of their own tokens, and in exchange will integrate strategies in the ecosystem for leveraged deployments.

If the proposal succeeds, the Alchemix community will be able to earn low risk passive income by lending, or take more risk to earn high yields with leverage.

Chainlink is a seed investor in Blueberry and the protocol has been audited by multiple auditing firms including Hacken and Sherlock.

Proposal

We propose that the Alchemix DAO makes a treasury deposit of $500k worth of ALCX on Blueberry Lend https://app.blueberry.garden/lend (URL not yet live, test deployment in progress).

Blueberry will allow borrowers to borrow the tokens to enter custom automatic yield strategies, and will also support leverage into various pools for the assets.

This creates a new revenue stream for the treasury or other holders who do not wish to take any additional price risk by providing liquidity or locking their tokens. The treasury providing this liquidity will allow for the community to add leverage to their deployments.

Setting up a blueberry lending market adds a source of passive yield for ecosystem token lenders that pays far higher market rates than they would receive on AAVE or Compound (projected Blueberry rate = 5-10%). All yield comes from borrower interest + bBLB emissions, net adding a significant amount of yield to the Alchemix ecosystem.

If the DAO decides to make a treasury deposit, Blueberry DAO will direct boosted bBLB emissions to the pool to create an additional yield. Estimated to be worth $20k over 2 months, which translates to a 24% APR on a deposit of $500k. After 2 months, the additional bBLB rewards are targeted to add a 3-5% bonus APR.

If this proposal passes, Blueberry is willing to enable the alAsset Curve pools (alUSD3Crv, alUSDFraxBP, alETHCrv) as possible strategies for borrowed assets, USDC, Dai and ETH. This incentivizes additional deposits into the main alAsset pools at no cost to Alchemix.

Blueberry also makes it possible to insure the ALCX deposits at a very low annualized interest rate of 2% through Sherlock. Given that Blueberry (while thoroughly audited) is a new protocol, purchasing this insurance would be highly advised and is the default option should the proposal pass.

ALCX lending/borrowing

The ALCX deposited by the treasury would be borrowed by users and deployed in spells (strategies) operated by Blueberry, such as a 85/15 ALCX/USDC Univ3 pool.

The Blueberry ALCX market is specifically targeted at the Alchemix treasury, as the yield on the supplied ALCX will almost certainly be lower than gALCX staking, so possibly no other participants would choose to deposit. (This may change after veALCX launches and gALCX is sunset, as at that point the only option to earn native yield on ALCX would be through liquidity pools and locking the tokens) This enables the Alchemix treasury to earn on its dormant ALCX without directly impacting the price of ALCX (the spells would require users to supply an equal amount of USDC/etc. to the amount of ALCX that they borrowed, thus the ALCX is not sold in the process). With the recent withdrawal from Tokemak, none of the treasury ALCX is currently deployed anywhere. The initial proposed deposit of $500k worth of ALCX is ~5% of the current treasury ALCX holdings.

Voting Options

Voting is single-choice.

The “Approve” option greenlights the deployment of $500k treasury owned ALCX to be deployed in Blueberry and to insure the deployed assets. The “Disapprove” option signals disapproval of deploying any assets into Blueberry.

1. Approve
2. Disapprove
3. Abstain