Alchemint, a smart contract platform on top of NEO’s blockchain, is designed to offer consumer grade fiat-pegged crypto-currencies leveraging the distributed ledger technology and smart contract and is committed to building up a decentralized, resilient, open and transparent system of price-stable cryptocurrency.
Popular digital assets such as Bitcoin (BTC) and Ether (ETH) are too volatile to be used as everyday currency. The value of a bitcoin often experiences large fluctuations, rising or falling by as much as 25% in a single day. Alchemint uses smart contract to allow distributed creations of SDUSD (a kind of stablecoin dynamically pegged to USD) with the collateralization of various crypto-assets, as backed by a set of mechanism (Smart Assets Reserve) that secures the stability of SDUSD’s value.
The Smart Asset Reserve is a smart contract based on NeoContract. Using SAR, the platform can guarantee the security, transparency, and auditability of all mortgaged digital assets. Here’s the basic process used by the Smart Asset Reserve (SAR) to keep prices stable:
Step 1: A user sends 10 NEO to the SAR with the value of NEO pegged at $100 per token. Then, the smart contract evaluates the mortgage rate, say 200% and sends the proper amount of SDUSD back to the user (in this case, $500).
Step 2: If a user wants to redeem those 10 NEO, he has to give 500 SDUSD back to the SAR then pay a certain commission.
Step 3: If the price of NEO increases, the market value of a user’s collateral will also increase, along with the user’s mortgage rate. However, if the price of NEO falls below a certain point, users have to invest more NEO tokens to make up for the loss. If they choose not to, Alchemint has the option of liquidating the collateral, and the user will have to pay additional fees.
In addition to SDUSD, the Alchemint project will also have a utility token, SDT. SDT tokens are used to pay commission/interest when borrowers redeem their principle of the SAR. SDT holders will also have voting powers to decide risk management characteristics of the system. 70% of total SDT tokens will be sold. When SDT is paid to redeem principle, that SDT will be burned.
Team & Advisors – 8/10
Zhang Ting, CEO: Extensive experience in the securities, media and Internet finance industries. Previous to Alchemint, Ting founded and served as CEO of Honeymoney, a community financial platform, which was later acquired. She also served as COO at Jili Wealth p2p, a lending platform in China similar to Lending Club.
Zhang Wei, CPO: Master’s degree in Finance & Economics. Product Manager & Investment advisor at a large-scale bank in China for about 8 years. Worked in the management and operation of ultra-high net customer products.
Qi Feng, CTO: over 10 years of experience in information technology and management in the financial industry, who has successively served as general manager of Sinosoft E-Commerce Division, senior consultant of Financial Division in Neusoft Group and chief technology officer of Renhezhi Group.
Steel Chen, Core Development Engineer: Senior Engineer and Financial Technology Specialist at IBM for 8 years.
Lei Geng, Core Development Engineer: Full Stack Engineer. Senior Engineer for smart contract development.
Joe Wu, Core Development Engineer: Over 8 years’ experience in mobile applications and network instant messaging systems.
Advisors have experience in blockchain technology, financial engineering and cryptography. NEO foundation is an investor in this project and backs them. There are also a lot of big financial institutions backing them including Fenbushi Capital, Hayek Capital and Signal Ventures.
Roadmap – 7.5/10
June 2018 Launch on testnet.
September 2018 Launch on mainnet.
November 2018 Alchemint V1.0 officially launched.
April 2019 Alchemint V2.0 officially launched.
Token Metrics – 8/10
Total Hardcap: 30,000,000 USD (already raised $14 million in private and pre-sale).
Max supply: 1,000,000,000 SDT
Token type: NEP-5
ICO Token Price: 1 SDT = 0.0800 USD
Token sale %: 45%
Public sale: June 12th on LeekICO Platform.
Positive for short term flip
Neutral for long term hold - Their price stability model appears to be similar to what MakerDAO employed while developing DAI. Development of DAI took 2+ years, MakerDAO being very well funded company.