Alchemix

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)

**Alchemix DAO now manages Mix-Yield Token (MYT) strategies directly** The DAO controls: - Strategy composition and allocation - Risk caps across conservative, moderate, and aggressive tiers - Fee structures **Key features:** - All changes are transparent and recorded on-chain - Community governance shapes yield sourcing decisions - Automatic rebalancing across risk strategies - Built on Morpho V2's open source infrastructure When users deposit collateral into Alchemix, it mints MYT tokens. The DAO then allocates these funds across different risk strategies without requiring manual management. This decentralized approach gives the community direct control over how yield is generated while maintaining transparency through on-chain governance.

Alchemix has completed its most extensive security review for v3, working with five audit firms and an independent researcher. **Audit Partners:** - Spearbit/Cantina Security - Nethermind - yAudit DAO - Immunefi - Independent researcher alpeh_v The protocol also conducted internal security testing alongside the external audits. This follows a February deep dive by cryptographer alpeh_v into the v3 Transmuter's synthetic debt and collateral mechanics. The comprehensive audit approach demonstrates Alchemix's focus on security before deploying its self-repaying loan protocol upgrade.

Alchemix has introduced a **Fixed-Duration Transmuter** that provides predictable price support for alAssets (alUSD and alETH). **How it works:** - Deposit alUSD or alETH and lock for a fixed period - Redeem 1:1 at maturity for underlying assets - Earn predictable, fixed-rate yield **Benefits for liquidity providers:** - Tighter peg stability - More reliable fee generation - Reduced volatility risk This upgrade builds on Alchemix's existing Transmuter system, which allows users to convert alAssets back to their underlying collateral at a guaranteed 1:1 ratio. The fixed-duration model adds time-locked certainty to the process.

**Alchemix v3 is set to launch in approximately one week** following the completion of a major protocol migration. **Key Updates:** - v2 contracts have been frozen as the migration process begins - All existing positions are being transitioned to v3 over the next week - The protocol will return online with the v3 launch **Major v3 Features:** - **90% loan-to-value ratio** (up from previous limits) - New Transmuter system - MYT (Manage Your Transmuter) vaults - Complete architectural upgrade **Migration Details:** The team has published a comprehensive migration guide explaining the transition process and new features. Users are encouraged to review the documentation to understand how their positions will be affected. Full migration details: [The Great Alchemix v3 Migration](https://alchemixfi.medium.com/the-great-alchemix-v3-migration-df1c4d77ccdb)

**Audit Milestone Reached** Smol v3 development continues with key security progress: - yAudit DAO system-wide audit began last week - All additional testing completed - Further updates coming soon This follows the previously announced Immunefi audit scheduled for October 6th. The protocol offers self-repaying, interest-free, and non-liquidating loans.