Have you heard of the decentralized app, Alchemix? Alchemix is an app that allows participants to take out a loan that they never have to pay back. It sounds too good to be true, right?
Incredibly, this is no scam. The Alchemix app makes a self-paying loan possible. Okay, bear with us, and we’ll try to explain in simple terms how Alchemix works.
A traditional bank may offer a savings account with a 10% annual interest rate. So, say you want to save up $100, you could open a savings account and deposit $1000. If you don’t touch the money for 1 year, you’ll have earned $100 in interest. Imagine not having to wait a whole year. In fact, imagine not having to wait any time at all. Imagine being able to purchase a car… for free.
Alchemix is making that possible.
When you deposit money into Alchemix, it allows you to withdraw up to 50% of the amount you deposited, straight away, if you wish. So if you deposit $100,000 into the system, it will give you up to $50,000 in the form of their native token, which you can then exchange for US dollars, send to an exchange, withdraw to your bank, and buy a car.
If you had bought your car with $50,000 cash, you’d only have the car. If you wait 19 to 24 months, the $50,000 you borrowed to buy the car will be replenished, and then you’ll have the original $100,000 and a car!
How does Alchemix replenish the loan?
Alchemix moves your deposited funds around different DeFi vaults to capture the highest interest possible at all times. Imagine a bank moving your money around to the highest-yielding accounts every day to earn interest as fast as possible. So, with Alchemix, you really could buy a car for free!
DeFi is truly mind-blowing, isn’t it?
