Alkemi is a decentralized liquidity network running on the Ethereum blockchain, offering DeFi access to everyone through a suite of tools and products that serve as onramps to a new financial infrastructure. Alkemi technology utilizes Web3 innovation to facilitate the migration from the legacy financial system to the future of natively-digital capital coordination.
Alkemi Network solves the friction points for CeFi institutions to participate in DeFi, enabling their contribution to a global, decentralized liquidity network that can be accessed and governed by the network's community tokenholders. Alkemi enables the coexistence of both permissioned 'Verified' and permissionless 'Open' liquidity pools linked to protocols governed by the network's native multi-utility token.
In order to achieve a permissionless, decentralized liquidity network, all counterparties must be able to interact freely within the financial ecosystem. However, the retail-focused innovations of decentralized finance haven't yet made provision for institutional participation requirements. The flagship protocol, Alkemi Earn (Earn) is tailored to provide CeFi institutions with a frictionless portal to DeFi, integrating advanced reporting and risk management features within a trusted-counterparty permissioned environment secured by a KYC / AML partner. Earn enables the wall of institutional capital to permeate the market; CeFi institutions can now participate in the DeFi revolution. This constitutes the first chapter of the network rollout strategy.
With rising institutional participation, access will be extended to other users wishing to participate in Alkemi Network via a secondary permissionless pool, 'Open', for the Earn protocol. This open pool will be launched at the token generation event for the network's native multi-utility token, ALK. This constitutes the second chapter of the rollout strategy.
Alkemi Network will be structured as a community-governed DAO, where ALK token holders will have the authority to create and vote on proposals. The development of the network will be in the hands of the community with the role of the Alkemi team as “facilitators”.
The native permissionless multi-utility ALK community token will be created after the formation of the Alkemi Foundation and once the formal DAO structure of the network has been established. The Token Generation Event (TGE) will mark a further step towards progressive decentralization.
TGE is scheduled for Q2 2021. A fixed supply of permissionless, Alkemi Network 'ALK' ERC-20 multi-utility tokens will be created.
Governance: One utility component of the ALK token will be its use in governing the Alkemi Network. Each token will entitle the holder to one vote on all Alkemi Improvement Proposals (AIPs).
Staking: In addition to bestowing voting rights, ALK tokens will also carry the future utility of unlocking staking rewards within the Alkemi Network. ALK token holders will be able to stake their utility tokens in the Alkemi Vault to provide an additional security/insurance layer to Alkemi Network protocols and access benefits including improved collateralization rates for borrowing.
Note: ALK tokens will continue to confer voting rights to holders upon staking.
Access: There will be additional utility functionality features established as the network evolves.
More details will be released in the coming months as part of a 'Token Economics' explainer paper.
As part of the vision to be technologically and financially decentralized, opportunities will be made available for participants to become members of the Alkemi Network community. Initiatives including bug bounties, hackathons and other programs will be established, allocating tokens from the Alkemi Foundation towards developing our community. More details will be provided in due course.
Alkemi Earn is an institution-grade DeFi borrowing and lending protocol featuring permissioned and permissionless liquidity pools.
The permissioned pool, 'Verified', is tailored for institutional clients, solving the friction points of capital, connectivity and control and enabling their participation in the emerging on-chain structured financial product yields of Decentralized Finance. Integrating advanced reporting and risk management features with a trusted-counterparty environment secured by the KYC / AML partner, Earn permissioned facilitates CeFi institution participation in the DeFi revolution.
Earn's permissionless pool, 'Open', provides open borrowing and lending DeFi access for everyone.
Borrowers pay 0.1% of the borrow amount as origination fee, which is added to the total borrow amount in respective currency.
Liquidations carry an 10% fee paid to the liquidator. All transactions will incur Ethereum blockchain-related gas fees and are paid by the transactor.
Funds are deposited into the Alkemi Earn smart contract. Alkemi Network technology facilitates non-custodial transactions by design; every network participant retains custody and allocates their own funds. The code of the smart contract is public, open source, formally verified and audited by third party auditors. Depositors may withdraw funds from the pool at any time, on-demand. Please note: full withdrawal of funds may be impacted by any depositor borrowing or liquidity mining activities.
Whilst Alkemi Network has gone to great lengths to maximize security for participants, smart contract risk (the risk of a bug within the protocol code) and liquidation risk (risk on the collateral liquidation process) are still present. The following risk mitigation procedures have been undertaken:
Internal testing, real-time monitoring.
Utilization of security-trialled, community-reviewed code libraries where available, continuously improved and tested by developers worldwide.
Alkemi Network utilizes Zeppelin Defender.
Smart contract audit planned for 2Q 2021.
Additionally, a bug bounty campaign will be unveiled in due course.
Please see the Security Statement for more detail.
Liquidity Mining is currently available to participants looking to make deposits of minimum $50,000 USD equivalent in core markets of ETH, WBTC, USDC and DAI. Please see the Liquidity Mining Program for more details.