Alchemix ETH (Ethereum)

alETH

alETH is a synthetic asset overcollateralized with ETH. It represents a debt position on the Alchemix protocol.

Risk Rating
Average
$2,831.66
-1.12%
Summary
What we like
alETH is a synthetic version of ETH that is backed by underlying ETH deposited in Alchemix vaults. It enables the user to leverage on top of their ETH holdings.
What we like less
alETH could lose peg in volatile market conditions as there are operational risks of the Yearn vault losing ETH and it provides less utility than ETH.
What it means for you
alETH is a solid way to gain leveraged exposure to ETH and put it to work for you in DeFi.
Information
Blockchain
  • Ethereum
Key Metrics
  • Fully Diluted Valluation: $129.2M
  • Total Supply: 45,461
  • Volume (24H): $99.6K
  • ATH: $3,630.36 (03/12/2024)
  • ATL: $1,070.00 (11/22/2022)
Risk Assessment
Average
Asset Strength

alETH is a low-cap undercollateralized asset. This asset is exposed to the underlying risks of Alchemix, a protocol rated as Average. alETH's backing is undercollateralized due to the Curve exploit which drained the alETH-WETH pool on Ethereum.

Asset Tokenomics

alETH does not have a supply schedule. The Alchemix Elixir is inspired by FRAX`s AMO design by supplying liquidity to its primary Curve pools for alUSD and alETH. The Elixir is continuously funded by debt repayments which will further deepen liquidity and help maintain the peg.

Asset Volatility

alETH is highly correlated to the overall market. The Alchemix Elixir is inspired by FRAX's AMO design by supplying liquidity to its primary Curve pools for alUSD and alETH. The Elixir is continuously funded by debt repayments which will further deepen liquidity and help maintain the peg.

Dependencies

Alchemix

Things to know about alETH

How does alETH work?

alETH is a synthetic asset created on the Alchemix platform. It is minted against the value of ETH deposits which acts as collateral backing the value of alETH. alETH is currently backed by a 400% collateralizatoin ratio, meaning for every 4 ETH deposited, the user can borrow 1 alETH.

Why trade alETH?

alETH can be a great way for user to leverage up on their ETH exposure as well as hedge against market volatility without actually selling their underlying ETH. By depositing into Alchemix, the user an borrow up to 25% of their ETH value in alETH. This can then be sold for stablecoins as way to profit on the ETH position without actually losing exposure to their ETH. If alETH were to depeg, then users would be incentivized to buy alETH on the open market at a discount to repay their debt.

How to redeem back for ETH?

alETH can be redeemed back for its underlying ETH at any time. The Alchemix vault is constantly paying off its own debt as it uses the ETH deposits to earn yield across DeFi. It then uses these earnings to pay off its alETH debt over time. When ready, the user just needs to burn alETH on Alchemix to redeem their ETH deposits.

alETH Pools
Mero ETH Staking
0%
Yield
$13K
TVL
Risk
C
Protocol
Mero
Chain
Ethereum