Alchemix V3

Alchemix V3 receives a C risk grade (48/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — Alchemix V3's self-repaying loan design is genuinely novel and the diversified MYT basket improves on V2's single-strategy isolation risk. However, routing all yield through Morpho V2 introduces a new critical systemic dependency, the 90% LTV raises peg-stability requirements for alETH (historically 2-5% depegged), and ALCX's perpetual emission schedule with no direct fee sharing limits token value accrual. Grade C reflects innovative product design offset by concrete collateral dependency risk. Alchemix V3 offers 'self-repaying loans' — deposit yield-bearing assets, borrow up to 90% in synthetic alUSD or alETH, and the yield from your deposit automatically repays the loan over time. No liquidation risk from price moves. V3's core innovation is the MYT (Mix-Yield Token) — a diversified yield basket routing through Morpho V2 across 5+ strategies. Launched after a forced V2→V3 migration in early 2026. $36M TVL. ALCX token governance; pseudonymous team. One historic incident: 2021 alETH accounting bug ($6.5M, no user losses — protocol absorbed deficit).

The key risks identified for Alchemix V3 are: (1) All V3 yield routes through Morpho V2. If Morpho V2 is exploited (as Euler, a similar protocol Alchemix previously used, was in March 2023 for $197M), the yield-generating collateral backing your loan could be drained — with no protocol insurance fund to cover the loss. (2) alETH trades at a persistent 2-5% discount to ETH. With 90% LTV, if this discount widens to 10%+ during a DeFi stress event, your loan's synthetic token is worth significantly less than your ETH collateral, but the protocol has no liquidation mechanism — you're trapped with an increasingly unfavorable position. (3) Self-repaying only works with positive yield. At current compressed DeFi rates (2-4%), a 90% LTV loan could take 50+ years to self-repay. If yields drop further or yield sources underperform, your capital remains locked in Alchemix indefinitely.

Alchemix V3 scores 48/100 across eight risk dimensions: Mechanism Novelty: 9/15, Interaction Severity: 13/20, Oracle Surface: 6/10, Documentation Gaps: 2/10, Track Record: 5/15, Scale Exposure: 3/10, Regulatory Risk: 4/10, Vitality Risk: 6/10. The highest risk area is Interaction Severity at 13/20.

Among 119 rated Yield protocols on Hindenrank, Alchemix V3 ranks #108 by safety (lowest risk score = safest). Its 48/100 risk score and C grade place it among the riskier Yield protocols.

Alchemix V3 scores 5/15 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.