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Alchemix Finance

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[AI-DRAFTED · AWAITING VERIFICATION]

Auto-generated score, not yet verified against the scoring model. Under review — treat as indicative, not a verdict.

anchored·5AKNgL…V7ZA

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.

Have evidence about Alchemix Finance?

Timeline(12 events)

February 2021

Alchemix Finance launches on Ethereum mainnet, introducing self-repaying alUSD loans backed by Yearn yDAI vaults.

CoinDesk

14 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.

iosiro

16 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.

CoinDesk

21 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 Forum

13 January 2022

Runtime Verification delivers final V2 audit report following a seven-week engagement covering core AlchemistV2, TransmuterV2, and related contracts.

Alchemix Finance Medium

13 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.

CryptoNewsZ

3 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.

CoinDesk

30 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 Medium

3 August 2023

Alchemix, Curve, and Metronome jointly offer the Curve exploiter a 10% recovery bounty to return stolen funds.

CoinDesk

5 August 2023

All funds stolen from Alchemix's alETH–ETH Curve pool are returned by the exploiter following the bounty offer.

Alchemix Finance Medium

23 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.

Immunefi

30 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 Medium
Provenance & Audit Trail

Decision Log

This investigation is cryptographically anchored to the Solana blockchain (3 events). 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: 7/27/2026, 4:23:38 AM

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