Is Alchemix Safe?
Risk Grade: C+ (36/100)
Alchemix is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
Moderate risk — genuinely innovative self-repaying loans with clean recent operation, but yield dependency and high LTV plans introduce real fragility
A lending protocol where your deposited collateral earns yield that automatically pays off your debt over time. It holds $29M in deposits with a unique self-repaying loan model. Its B- grade reflects genuinely innovative design with clean recent operation, offset by dependence on external yield sources and historical integration incidents.
TVL
$30M
Mechanisms
7
Interactions
5
Value Grade
C-
Key Risks for Alchemix Users
Your loan only repays itself if the underlying yield strategy keeps earning. If DeFi yields go to zero, your collateral stays locked indefinitely while your debt never shrinks.
Previous incidents include a $4M loss from a bad yield strategy (yETH, 2023) and exposure to the Curve reentrancy exploit. These were external protocol issues, but Alchemix inherits risks from every protocol it deploys funds to.
The upcoming V3 allows borrowing up to 90% of your collateral value. This leaves almost no safety margin if yields drop or collateral value declines.
Top Risk Factors
- •Self-repaying loan model depends entirely on sustained yield generation from underlying strategies. If yields go to zero, loans never repay and collateral is locked indefinitely.
- •Historical integration risks: $4M yETH reverse rug (2023) and Curve pool reentrancy exposure demonstrate compounding third-party dependency risk.
- •Upcoming v3 with 90% LTV introduces thin margin for error if yield strategies underperform, compressing the buffer between collateral value and debt.
Risk Score Breakdown
Alchemix's highest risk area is Vitality Risk (7/10). Here's how each dimension contributes to the overall 36/100 score:
Read the Full Alchemix Risk Report
This protocol has 2 collapse scenarios. 2 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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