*Inflation figures shown here reflect circulating (market) inflation and may differ from a coin’s projected, policy (planned) inflation.
What is Alchemix?
Alchemix is a DeFi protocol on Ethereum that lets you mint alUSD, a dollar-pegged stablecoin, against your crypto collateral by leveraging Yearn Vaults for yield. The earned yield is used to gradually repay the loan, creating a self-repaying loan mechanism, and the platform also features the ALCX governance token for decentralized governance.
Why does Alchemix have inflation?
Alchemix has inflation because each new loan mints alUSD, increasing the circulating supply; there is no automatic burn mechanism to offset minting, so borrowing can drive inflationary growth.
How is Alchemix inflation calculated?
Alchemix inflation is calculated by comparing the circulating supply from one year ago to today’s supply. The percentage increase in supply over that period is the annual inflation rate. Learn more in our guide: What is cryptocurrency inflation?.
How is Alchemix emission calculated?
Alchemix emission refers to how new coins enter circulation, usually through mining or staking rewards. The emission rate depends on the project’s monetary policy and block reward schedule. Learn more in our guide: What is cryptocurrency emission?.
