What is ALCX cryptography? How does ALCHEMIX cryptography work?

Blockchain-based digital currencies are redefining not only money, but all aspects of it. Money finds new dimensions when institutions that provide credit services to borrowers come into play.

In the blockchain world, these loans and borrowings are a bit different. Instead of a fiat currency like the US dollar, blockchain credit services have crypto assets underpinning the deal. This new segment within distributed ledger technology is commonly referred to as decentralized finance or DeFi.

What is Alchemix DeFi?

Like any other blockchain-based project, Alchemix aims to solve a particular problem by harnessing the potential of peer-to-peer architecture.

The platform claims to allow users to borrow, while earning collateral. The process is simple: A borrower uses their cryptocurrency as collateral to secure a quick loan, but these secured crypto assets generate what the platform calls “yield-backed tokens.”

Alchemix is ​​a project with the concept of yield farming at its heart. Yield farming generally refers to any crypto asset staking holder or lending stake in order to earn rewards in the form of new crypto assets.

Read also: Know how Bitcoin compares to the US dollar

How does the Alchemix platform work?

The platform describes itself as a “self-paying debt” facilitator.

This is achieved when the user of the platform deposits a DAI token – a stablecoin – to get an advance or loan from the platform. The deposited DAI coins generate “synthetic” stable coins, known as alUSD. The new stablecoins thus generated can be exchanged for DAI in a 1: 1 ratio, as claimed by Alchemix.

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What is ALCX cryptography?

Most blockchain projects have a governance token in order to let users decide how it works.

ALCX is the same governance token used within the Alchemix platform. Users can stake their possession of ALCX coins to participate in the vote. This essentially gives powers to all users of the platform, and in turn differentiates Alchemix from mainstream financial institutions which have a centralized entity in charge of governance.

ALCX Crypto Price Trends

Currently trading at nearly $ 340 per token, ALCX has a market cap of over $ 320 million. Although ALCX is not one of the best cryptos by market cap, the volume of transactions is quite high. Over US $ 100 million worth of ALCX coins have been traded in the past 24 hours.

Image Description: ALCX crypto price

Data provided by CoinMarketCap.com

ALCX Price Prediction

In March 2021, the price of an ALCX token exceeded US $ 2,000. The digital currency ended 2021 with a price of almost US $ 240.

One week in 2022, and ALCX has gained immense value. It came at a time when major cryptos like Bitcoin and Ether are trading at moderate price points. The appreciation in price of ALCX can be attributed to DeFi’s growing stature. If blockchain enthusiasts keep up the momentum for blockchain-based credit, ALCX could surpass at least $ 400 by the end of the first quarter of 2022.

Read also: The best crypto winners of 2021, and some underperformers

At the end of the line

ALCX, a governance token, found support in 2022. The token lost enough value in 2021, but since the Alchemix platform is on DeFi loan, with yield farming features, ALCX may steal the interest of crypto enthusiasts.

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