Alchemix Finance
Last changed 2026-10-10 · Score recalculated — Rescored under Scoring v2, the published formula (avoid.net/scoring): 50 → 66. Problems weighed by who is responsible: concerns that are not fraud −9.2, incidents the subject suffered −6, problems around the subject, caused by others −2.2; legitimacy credit long-running +8; fact-check adjustments (−12) now shown as page reliability, not in the score. Version history →
Why this score
| Every page starts at | 65 |
| Concerns that are not fraud | -9.2 |
| Incidents it suffered (e.g. hacks) | -6 |
| Problems around it, caused by others | -2.2 |
| Long-running | +8 |
| Sum | 56 |
Score: 66/100 (kept between 0 and 100)
How scoring works →Summary
Alchemix Finance is an Ethereum-based DeFi protocol that offers self-repaying loans, allowing users to deposit yield-bearing collateral and borrow synthetic assets whose debt is automatically paid down by the underlying yield. The protocol has experienced several notable security incidents since its February 2021 launch, including a June 2021 alETH transmuter bug (~2,700 ETH overclaimed), and a July 2023 Curve pool exploit (~$20M stolen and subsequently fully returned). Alchemix has maintained operational continuity through each incident and continues to develop a V3 upgrade with an active Immunefi bug bounty program.
Connected Entities
6 entities · 60 linked investigations- Yearn Finance→mentioned with→Ethereum(70%)
- Optimism→mentioned with→Ethereum(80%)
- Euler Finance→mentioned with→Ethereum(80%)
- Curve Finance→mentioned with→Ethereum(80%)
- Alchemix Finance→mentioned with→Yearn Finance(80%)
- Alchemix Finance→mentioned with→Curve Finance(80%)
- Alchemix Finance→mentioned with→Euler Finance(80%)
- Yearn Finance→mentioned with→Curve Finance(80%)
- Alchemix Finance→mentioned with→Optimism(65%)
- Alchemix Finance→mentioned with→Ethereum(80%)
Timeline(12 events)
February 2021
Alchemix Finance launches on Ethereum mainnet, introducing self-repaying alUSD loans backed by Yearn yDAI vaults.
CoinDesk14 June 2021
iosiro researcher Ashiq Amien discloses a high-risk access control vulnerability in the AlchemistEth contract via Immunefi; bug is patched before exploitation, $7,500 bounty awarded.
iosiro16 June 2021
alETH transmuter bug discovered: misconfigured vault deployment causes ~2,262–2,700 ETH (~$5.3M–$6.5M) overclaimed by borrowers who could withdraw collateral without repaying loans. alETH contract paused within ~15 minutes.
CoinDesk21 June 2021
Alchemix launches voluntary alETH return portal, offering 1 ALCX per ETH/alETH returned plus an NFT for full returns. Over 50% of shortfall recovered within three days.
Alchemix Governance Forum13 January 2022
Runtime Verification delivers final V2 audit report following a seven-week engagement covering core AlchemistV2, TransmuterV2, and related contracts.
Alchemix Finance Medium13 March 2023
Euler Finance suffers a ~$197M flash loan hack. Alchemix reports no direct exposure; indirect exposure via yvUSDC/yvUSDT Yearn vaults is limited to approximately $1.38M through Idle and Angle integrations.
CryptoNewsZ3 April 2023
Euler Finance announces all recoverable funds from the March 13 hack have been returned by the exploiter, resolving indirect exposure risk for Alchemix and other affected protocols.
CoinDesk30 July 2023
Curve Finance liquidity pools exploited via a Vyper compiler vulnerability (versions 0.2.15–0.3.0). Alchemix's alETH–ETH pool loses 4,821 alETH and 7,258 ETH (~$20M). Alchemix pre-emptively removes 8,027 alETH before pool is fully drained.
Alchemix Finance Medium3 August 2023
Alchemix, Curve, and Metronome jointly offer the Curve exploiter a 10% recovery bounty to return stolen funds.
CoinDesk5 August 2023
All funds stolen from Alchemix's alETH–ETH Curve pool are returned by the exploiter following the bounty offer.
Alchemix Finance Medium23 September 2023
Security researcher Koiush submits a high-severity access control vulnerability in AlchemixHarvester to Immunefi; the bug could have enabled sandwich attacks on yield harvesting. Patched with no user fund impact; 1,000 ALCX bounty paid.
Immunefi30 June 2025
Alchemix reports Q2 2025 TVL of $45.35M (up 12.9% quarter-over-quarter), with protocol revenue of ~$780K and full operational continuity. V3 audit competition underway via Cantina.
Alchemix Finance MediumDecision Log
- slot 455367448 · hash s46twBnJVYgCpjYGD5Wzkxp7FJn5vgq4EhVyPwAUkQC
- slot 425156867 · hash HZqysJUys8EVotDSj2fFt4W9oD84GZQqdbgu6YcRRCig
- slot 425156863 · hash zMpP94V8KM51eHrmTVu7qLbRtRUUbibr36bQWqhQSMX
- slot 423324420 · hash B6pEWp7iwix5Tdd3jBQVvLRVdhuceWTFn1xUNPtiReU2
This investigation is cryptographically anchored to the Solana blockchain (4 decisions). 23 of 25 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 5/31/2026, 6:58:36 AM
last updated: 10/10/2026, 6:47:28 PM
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