Alchemix Reports 112% Growth on Arbitrum in Q3 2024

The v3 Transmuter enables users to lock in fixed returns in under a minute through a straightforward process: - **Deposit alAssets** and lock them for a predetermined period - **Redeem 1:1** for the underlying asset at maturity - **Earn predictable yields** without managing peg fluctuations When alAssets trade below their peg value, users can deposit them into the Transmuter to lock in the current discount. This mechanism burns alAssets and provides the underlying asset at a 1:1 ratio upon maturity, creating a fixed-rate yield opportunity while simultaneously supporting the peg. The system offers a clear maturity date and eliminates the complexity of peg management, making it accessible for users seeking stable, predictable returns.

Alchemix has integrated Euler to power moderate risk yield strategies in their MYT (Manage Your own Transmuter) vaults, now live on both Ethereum Mainnet and Arbitrum. **Key Details:** - Euler-powered strategies are classified as moderate risk tier - Full strategy compositions and vault caps are documented - Deployment spans two major networks for broader accessibility This follows Alchemix's previous integration with Auto protocol in May 2026, showing continued expansion of their yield strategy options. Users can review complete technical specifications at [Alchemix docs](https://docs.alchemix.fi/user/concepts/myt-and-yield#per-chain-variants)

**Traditional lending pools share risk across all assets** - when one asset fails, the entire pool takes a hit. **Euler v2's new approach:** - Risk-isolated vaults separate different assets - Each vault operates independently - Bad debt in one vault doesn't affect others - Protects against market contagion spreading across the platform **What this means:** Users can now access specific yield opportunities without worrying about unrelated assets dragging down their returns. If a single asset experiences problems, only that isolated vault is affected - not the entire lending market.

A DeFi protocol is leveraging Euler v2 as the foundational layer for its yield architecture. The integration enables Mix-Yield Tokens to operate across both Ethereum and Arbitrum networks. **Key Implementation Details:** - Euler v2 powers yield generation for Mix-Yield Tokens - Deployment spans Ethereum and Arbitrum chains - Strategy isolation maintained without performance trade-offs The architecture allows the protocol to separate different yield strategies while maintaining optimal performance levels. By using Euler Finance's infrastructure, the team can manage multiple strategies independently across both networks. This integration represents a practical application of Euler v2's modular design, enabling protocols to build customized yield solutions on top of its base layer.

**The v3 Transmuter** is Alchemix's peg stability mechanism that converts discounted alAssets into their underlying assets at a 1:1 ratio. **How it works:** - When alAssets trade below peg, users can deposit them into the Transmuter - The protocol burns these alAssets and locks in today's discount - Users receive the underlying asset 1:1 at a predetermined maturity date - This creates a fixed-rate yield opportunity while supporting the peg Alchemix v3 launched with comprehensive audits from Spearbit, Cantina, Nethermind, yAudit, Immunefi, and independent researchers. The upgrade introduces 90% LTV vaults, new Mix-Yield Tokens, and the Fixed-Duration Transmuter. Liquidity providers benefit from tighter pegs, more reliable fees, and reduced volatility risk. [Read the full article](https://alchemixfi.medium.com/introducing-alchemix-v3-037a2ed26ab6)