Alchemint, a platform for issuing digital mortgage-backed stablecoins on the NEO blockchain, has published its January progress report. Following the platform’s release on the NEO MainNet in December last year, the team claims that its operations have progressed smoothly.
Alchemint differs from other cryptocurrency stable coins through its process for mortgaging digital assets. Alchemint includes a smart assets reserve (SAR) that’s held and controlled by smart contracts. The SAR contains risk control measures that are designed to stabilize SDUSD against the volatility of the market.
Alchemint’s SDUSD token is pegged to the US dollar on a 1:1 ratio, which is similar to other stable coins like Tether and TrueUSD.
Alchemint’s mortgaging process is not dissimilar to how banks issue loans. Users send a cryptocurrency they’d like to mortgage into the SAR and will receive a mortgaged SDUSD in return of up to 200% of its principal value. For example, someone might send 10 NEO into the SAR, and the market price is $100 USD. The mortgage rate is 200% so that the SAR will create a total of $500 SDUSD
In January, the dip in the overall cryptocurrency market affected the platform’s mortgage rate for digital assets, which can be seen in the tables below for December and January.
Due to the inflation of SDUSD and the drop in the price of NEO, the platform’s overall mortgage rate dropped from 353.99% to 224.08% as well as increasing SNEO’s collateralization total: 10,385 to 32,697.
In response to “anticipated demand” for the coin, the platform’s maximum supply was also lifted from 100,000 to 1,000,000.
Some new features for the Alchemint platform were announced that will be slowly rolled out.
For instance, the team proposed a “one-click Issue” button that allows users to instantly collateralize their NEO and issue SDUSD. Users may also adjust their mortgage rate for their collateralized assets.
Alchemint’s SDUSD stablecoin was also listed on a number of cryptocurrency exchanges.
SDUSD was listed in CoinMex on January 25th which now supports the BTC/SDUSD, USDT/SDUSD, and NEO/USD trading pairs.
SDUSD also debuted on the Switcheo exchange on January 15th, which now supports SDUSD/SWTH and SDUSD/SDS trading pairs.
Another significant announcement was Alchemint’s partnership with Phantasma Chain, a content distribution ecosystem. The relationship will reportedly involve Alchemint helping the Phantasma community “with a stable way of securing their funds.”
Alchemint also participated in a number of events held throughout January that can be read in full in the announcement here.