We are thrilled to launch the Alchemix alUSD/mUSD Feeder Pool on the Ethereum Mainnet with 20,000 MTA weekly rewards.
This follows the launch of two incentivized mUSD Feeder Pools
and two incentivised mBTC Feeder Pools
As a recap, Feeder Pools are composed of 50% any pegged asset such as BUSD, GUSD, UST and 50% mAsset such as mUSD, where mUSD serves as efficient bridges to bridge liquidity from each fPool to the main mAsset pool, providing new opportunities for LPs to earn MTA rewards and trading fees.
By contributing liquidity to a Feeder Pool, the liquidity provider will receive:
- Swap fees into the bAsset specific to that fPool
- MTA rewards
- Possible interest from lending out fPool assets, including the mAsset trading pair
- Possible liquidity rewards from project’s that wish to incentivise their own stablecoin on mStable
Feeder Pools are separate contracts from the mAsset pool and so do not impact the risk profile of mAssets. This means that any pegged asset can be added without impacting the integrity of mAssets.
Alchemix’s alUSD is a synthetic stablecoin that tokenizes your future yield, up to 50% of the amount of DAI deposited. The DAI is deployed by Alchemix to earn yield in a yvDAI vault on yearn Finance. As yield is harvested, the debt on alUSD will decrease and eventually paid off.
By pairing with mUSD in a Feeder Pool, alUSD holders can access another source of liquidity for their alUSD via mUSD — which serves as a bridge token for stablecoins in the mUSD basket and other Feeder Pools.
Liquidity Providers for the alUSD/mUSD basket can earn multiple sources of yield for this liquidity and obtain exposure to a capital efficient stablecoin pair.
Click here to contribute liquidity to the alUSD/mUSD Feeder Pool and here to read the guide on how to contribute liquidity.
About mStable
mStable is a protocol that builds autonomous and non-custodial stablecoin infrastructure.
Three major problems confront stablecoin users: significant fragmentation in same-peg assets; lack of native yield when it is being increasingly demanded by users; lack of insurance against permanent capital loss.
mStable’s products are built specifically to address these pain-points.
About Alchemix
Alchemix Finance is a future-yield-backed synthetic asset platform and community DAO.
The platform gives you advances on your yield farming via a synthetic token that represents a fungible claim on any underlying collateral in the Alchemix protocol.
