Alchemix

Alchemix receives a C+ risk grade (36/100) from Hindenrank, where lower scores indicate lower risk. 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.

The key risks identified for Alchemix are: (1) 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. (2) 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. (3) 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.

Alchemix scores 36/100 across eight risk dimensions: Mechanism Novelty: 6/15, Interaction Severity: 10/20, Oracle Surface: 2/10, Documentation Gaps: 3/10, Track Record: 3/15, Scale Exposure: 3/10, Regulatory Risk: 2/10, Vitality Risk: 7/10. The highest risk area is Vitality Risk at 7/10.

Among 90 rated Lending protocols on Hindenrank, Alchemix ranks #46 by safety (lowest risk score = safest). Its 36/100 risk score and C+ grade place it in the middle tier of Lending protocols.

Alchemix scores 3/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.