It's understandable why legacy finance veterans can't understand @AlchemixFi, but let me break it down to you @profplum99.

Fully disclosure, I'm the co-founder of Alchemix.

/1 https://twitter.com/profplum99/status/1378742034618490885

Now that's where he are wrong. With @AlchemixFi we take your DAI (usd stablecoin) and put it in a yield aggregator (which makes ~15% interest), and then use that as collateral to mint you a new synthetic USD stablecoin ($alUSD). We created new money - not shifted deposits around.

The alUSD debt is then paid off using the yield from its collateral. The yield then goes to a stabilization module, where users can trade alUSD for DAI 1:1. You can repay your debt using alUSD and or DAI, offering several arbitraging opportunities in the process.

Furthermore, any debt repayments using DAI go to the transmuter, bolstering the peg even more (currently 200m in the transmuter). And now that 200m is going to also be earning yield, boosting the yield and debt repayments even more.

Furthermore, the alUSD utilizes @CurveFinance's http://crv.to  pools, and via the LP incentives, it has 400m in liquidity, making it the second deepest pool for stablecoins on all of curve. You can trade 10m alUSD with little to no slippage in one transaction.

Even if alUSD were to fall off the peg, the system guarantees that as long as yield is flowing, then you can always redeem your alUSD to DAI. It's capital efficient, better than banks, and frankly superior to legacy finance in every way.

TLDR: NGMI

/end