Alchemint, found online at Alchemint.io, is a NEO-based stablecoin. Find out how it works today in our review.
What Is Alchemint?
Alchemint is a cryptocurrency project dedicated to launching a NEO-based stablecoin called the SDT token. The long-term goal of the project is to launch a number of fiat-pegged cryptocurrencies – similar to how Tether offers USD Tethers and Euro Tethers.
The cryptocurrency community has become increasingly focused on the creation of a “stablecoin” – a cryptocurrency with a stable price pegged to a fiat currency or other stable asset. Companies like Tether and a number of others have attempted to create stablecoins with varying degrees of success. Now, Alchemint aims to combat the volatility of the cryptocurrency industry by creating its own stablecoin.
Unlike other stablecoin developers, Alchemint doesn’t want to launch its own series of stablecoins; the company wants to provide anyone with the tools to launch their own stablecoin on the NEO blockchain. It’s a complete stablecoin management solution.
How Alchemint StableCoin Cryptocurrency System Works
A stablecoin sounds like a great idea. Creating a stablecoin, of course, can be very difficult. So how does Alchemint plan to launch its stablecoin?
Alchemint describes itself as a “decentralized price-stable cryptocurrency management system” based on the NEO blockchain. The company’s first stablecoin, the SDT, will be launched in the near future.
The main benefit of hosting Alchemint on the NEO blockchain is that anyone can check the real-time market value of collateral. You can verify, at any time, the value of the underlying assets of the stablecoin.
Meanwhile, smart contracts control transactions in and out of the stablecoin:
“There is no need to worry about the runaway, bankruptcy or account suspension of Alchemint for the smart contracts guarantee all the collateral will not be embezzled,” explains the Alchemint whitepaper. “The holders of stablecoin also do not have to worry about the fluctuating of the market value of collateral.”
Alchemint’s “management” controls include a complete set of risk control measures to manage the collateral’s market value, which means currency fluctuations will not trigger a crisis across the entire ecosystem.
Anyone can use the Alchemint management platform to issue their own stablecoin. To issue your own stablecoin, you’ll need to mortgage value-fluctuated NEO assets (or any digital assets approved by the Alchemint Governance Committee).
The first cryptocurrency issued through the Alchemint management platform is called Sdusd, which is a NEO-based cryptocurrency that is “relatively stable with the US dollar”, according to the whitepaper. The coin was created by mortgaging NEO and other digital assets, and the price is supported and stabilized by the Smart Assets Reserve (SAR), a commission lever, and internal and external motivators.
The Smart Assets Reserve fund is the key stabilization aspect behind Alchemint. Keep reading to find out more about how it works.
How Does The Smart Assets Reserve Work?
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 to keep prices stable:
Step 1) User creates a Smart Assets Reserve (SAR) and sends NEO into the SAR for mortgaging. The SAR will evaluate the value of NEO and, based on a mortgage rate, credit a certain amount of Sdusd back to the user’s account. If you send 10 NEO into the SAR and the market price for 1 NEO is $200 USD, for example, then the SAR will create 500 Sdusd with a 200% mortgage rate.
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. Nobody can embezzle the mortgaged NEO before the redemption.
Step 3) If the value of NEO breaks the liquidation level, the mortgager must make an additional investment in order to keep the value of collateral above the liquidation level. This can occur if, for example, the value of 10 NEO falls to $750 USD. If the mortgager takes no action, then everyone has the authority to liquidate this SAR in force and ask for extra bonus. The mortgager will suffer an extra loss for the negative action.
Alchemint SDT Token ICO Details
Alchemint plans to distribute 20% of the total supply of Alchemint tokens during a public sale. The remaining tokens are allocated to private investors (15%), cornerstone investors (10%), the founders and development team (10%), a community development fund (30%), commercial promotions (10%), and consultants (5%).
Alchemint has not yet announced a date for their token sale.
Who’s Behind Alchemint?
Alchemint is led by the Alchemint Foundation. The foundation aims to fuse centralized governance with a distributed structure. That means there’s a certain amount of centralized governance in the management structure – including the highest levels of decision making. However, the decentralized community influences decisions.
Listed members of the founding team include Zhang Ting (CFO), Qi Feng (CTO), and Zhang Wei (Product Director). Advisors and consultants include Sun Ming (Fenbushi Capital Legal Advisor), Professor Wang Yanming (PhD in Mathematics), Chen Yu (Founder of Juxiu Capital), and the NEO Council.
The team formed in November 2017. The goal is to complete development and issue the first tokens by April 2018. Alchemint is headquartered in Singapore.
Alchemint aims to create a stablecoin management system on the NEO blockchain. That management system would allow anyone to launch their own stablecoin by mortgaging assets on the NEO blockchain. They aim to launch their first stablecoins by April 2018. An ICO for Alchemint’s own tokens should also take place in the near future.
To learn more about Alchemint and how it works, visit online today at Alchemint.io.