The $100m Alchemic Bomb
Let’s first start by saying that the last 36 hours have been a wild journey through DeFi space. At least for the team, some magic appears to be circulating. Adoption of our protocol has exceeded our expectations, so much so that one of our core safety features will soon be brought into affect.
In the interest of protecting our users’ funds, we programmed a hard cap for the supply of alUSD into the Alchemix smart contract. Us being a newly created protocol, we wanted to ensure precautions would be in place. We set a debt ceiling of 50 million alUSD to allow us time to assess the stability of the contract before raising the ceiling. To our surprise we’re accelerating towards that ceiling at full speed!
Once the limit is reached, no more alUSD will be be able to be minted until the multisig + timelock (24 hours) raises the debt ceiling.
In preparation for reaching this limit, the team has initiated the multisig to raise the debt ceiling to 100 million alUSD.
The community is having a lively discussion of how best to proceed in our discord. The team is trying to form consensus with the community for how best to handle the situation. If you have any strong opinions on the matter, please come in and plead your case.
You may want to keep an eye on the TVL (this is visible within the transmuter) if you have any plans to draw down a loan any time soon ;)