Analysis of What Alchemix Whales Are Up To!

A special thank you to Flipside Crypto for the opportunity. Check out their Ethereum-based on-chain data analytics tool on their website: app.flipsidecrypto.com or reach out to them via Twitter @flipsidecrypto. 

What is the definition of a whale?

A whale is basically any wallet holder that is moving large amounts of a particular token. A whale usually has a large influence on the price and volume; there are undoubtedly a lot of Alchemix whales.

It has barely been a month since Alchemix launched, yet it has established itself as one of the top yield farming protocols in the DeFi space. According to DeFi Lama, Alchemix reached $1 billion in total value locked in just over a month, which compares closely to other notable platforms such as Yearn Finance. Alchemix has been very generous with the initial reward schedule and is heavily incentivizing users to continue staking their tokens through the various pools. Due to its fixed emissions schedule and allocation, total yield per used depends on the outstanding number of users that enter the various pools. 

Today, we investigate the influence of whales and what kind of other farming they may be engaged in. 

Alchemix currently has 4 different farming pools: 

  • ALCX Pool (~300% APY)

  • alUSD Pool (~80% APY)

  • ETH-ALCX SushiSwap Pool (425% APY)

  • alUSD3Crv Pool (~80% APY)

We extracted on-chain data using Flipside Analytics’ SQL query “Deposits to the Alchemix Yield Farms” and changed the total transaction limit to 400,000 (arbitrary number that represents max) and time interval to since inception. We then imported the CSV into Excel and adjusted all deposit values to current prices in order to better understand relative transaction price. For example, if someone deposited 1 ALCX into the ALCX farming pool 3 weeks ago, it would have been worth $500 back then, but it is worth $1900 today due to price appreciation. We did not take into account withdrawals in this analysis. In total, there have been 18,410 deposit transactions since inception of the pools. 

Our prices used are as followed:

  • ALCX price: $1,900

  • ETH-ALCX price: $4,197

  • alUSD price: $1.00

  • alUSD3Crv price: $1.00

By using the (GROUPBY) function, we were able to decipher the relative percentage of total amount deposited within various Alchemix farming protocols by whales, and we have put together a chart below that illustrates this notion. The total amount is equivalent to $2,220,831,940.49 since launch. A total of 4,791 individual wallets have exchanged with Alchemix Farming pools. 

The top whale has deposited the equivalent of $232,725,795.97 so far into Alchemix so far. Again, this does not account for any withdrawal. This means that one wallet alone is responsible for the equivalent of 10% of total adjusted dollars exchanged.

The top 5 wallets accounted for around 22% of total deposits. The top 100 wallets accounted for approximately 65% of the total amount exchanged. In other words, 2.3% of wallets are responsible for 65% of total dollars contributed to Alchemix farming pools. Moreover, about 25% (1,000 users) of wallets are responsible for 95% of total dollars. It is evident Alchemix pools are mostly dominated by those with relatively large capital bases. 

What are the whales up to?

Here is a list of top depositors (dollar amounts deposited into non-stable coin pools were adjusted to reflect today’s current prices).

Alchemix’s Top Whale

As expected, the top depositor into Alchemix is quite active and has conducted over 3,900 transactions that have led to more than $170,000 in gas fees.

(Source: Etherscan; 2,000 most recent ERC-20 transactions)

Given that this whale has deposited 9 figures into Alchemix farming pools, it comes as no surprise that they are primarily entering the stablecoin pools/dealing with stablecoins. This is likely for the whale to protect themself from extreme price volatility of ALCX itself. As a result, this wallet has not participated in the WETH-ALCX SLP pool despite it having the highest yield, and has mostly deposited into the 3CRV pool. 

Although deposit count of ALCX is fairly high, the total amount of ALCX deposited into the farm in current dollar terms is less than $1 million, which equates to less than 1% of total amount deposited. 

As mentioned in the previous chart above, this particular whale is also involved in the Wasabix Ecosystem, which basically utilizes the same core concept as Alchemix. Wasabix has its own governance token, a U.S. dollar-pegged coin, and collateral that pays down user loans. 

This depositor also has 8-figures worth of cETH and cWBTC, which are tokens representing the underlying asset. 

In summation, this wallet holder is highly engaged with Alchemix’s stable-coin farming pools, and staple assets (ETH and BTC). 

General Trends Amongst Whales

Most of the top Alchemix whales are active participants in stable-coin farming initiatives likely due to the relatively-low perceived downside-risk compared to holding regular cryptos.

A majority of whales have chosen not to actively participate in the farm with the highest yield.

Whales are active participants on DeFi platforms such as AAVE, Compound, Bancor, and Balancer. This proportion is much more concentrated than the broader market, which suggests that currently, DeFi is mostly dominated by larger wallets. Those with extremely large capital bases earn plenty of interest (in absolute terms) even in risk-averse pools. 

Popular Platforms/Tokens Amongst Top 35 Whales

One important thing to take away from this chart is that most wallets with tremendous capital are investing heavily into DeFi protocols, and for the most part, are staying away from hyped up altcoins. Not as exciting as many may think!

Individual Analysis - Read what each of the other top whales are up to!

Alchemix Whale #2

(Source: Etherscan; 1,000 most recent ERC-20 transactions)

The second biggest whale has 9-figures worth of cWBTC and WBTC, and is very active within the Compound app. This account is also very active in terms of moving stable-coins around, but otherwise does not seem to be actively participating in yield-farming initiatives. This account also holds some BGANPUNKS, which is an NFT series inspired by CryptoPunks.

Alchemix Whale #3

(Source: Etherscan; 1,000 most recent ERC-20 transactions)

Contrary to the two biggest whales, the third whale is quite active in the WETH-ALCX pool, which denotes his interest in chasing the higher yield despite increased risks with impermanent loss and underlying prices of ETH and ALCX. This wallet is quite active with stable-coins and has dabbled in Rari Capital’s Fuse pools, as well as USDP farming initiatives. This whale owns several Hashmask NFTs, and has also interacted with Wasabix Finance - the fork project of Alchemix. 

Alchemix Whale #4

Very active in SushiSwap stable-coin pools including with USDC pairs. Also involved with many DeFi coins such as AlphaFinance, DODO, AAVE, and CREAM Finance. 

Alchemix Whale #5

Recently participated in the FEI Genesis event, which is a new algorithmic stable-coin based on bonding curves instead of collateral-backed coins such as DAI; currently holding close to 7 figures of FEI stablecoin. Has not deposited into Alchemix pools for over 2 weeks, and has been purchasing a lot of DPI (DeFi index) and Olympus (another stable-coin initiative). Actively participating in the Rari Protocol.

Alchemix Whale #6

Has a few million dollars worth of aWETH tokens, and has been very engaged with RULER Protocol. Ruler Protocol is a platform that allows for no-liquidation loans and interest is determined by the market. Has also been active in stablecoin markets and has been an LP for BUSD-specific stablecoin pairs. 

Alchemix Whale #7

Owns over $20 million in standalone tokens of Synthetix, which is a DeFi platform focused on derivatives. Also participated in the FEI Genesis event, and has BGAN punks. Has been very active in the WETH-ALCX pool. 

Alchemix Whale #8 

Owns over $20 million worth of various Compound tokens, and is also actively participating in the FEI-TRIBE pool. Very active in the WETH-ALCX pool.

Alchemix Whale #9 

Active in the WETH-ALCX pool, and recently has been buying millions worth of $ILV, which is an open-world RPG adventure game. 

Alchemix Whale #10

Owns $7 million of Compound Uniswap token, and is very active in the SLP WETH-ALCX pool. Interacts often with AAVE and has lent from the platform (variable + stable debt). Also owns some Hashmasks.