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    ALEX is the first open source DeFi protocol built on the Stacks Blockchain and modeled on the world’s financial markets.

    Partnering with Stacks allows ALEX to access the liquidity, power, and safety of Bitcoin’s 1tn dollar blockchain.

    Stacks makes Bitcoin a programmable base layer, enabling decentralized apps and smart contracts that inherit all of Bitcoin’s powers.

    What can I do on ALEX?

    Borrow Bitcoin at competitive rates
    Mitigate risk with Bitcoin short positions
    Maximize upside with Bitcoin leveraged long positions
    Lend your bitcoin and earn interest

    The Most Secure Way to Access DeFi

    On ALEX you can trade BTC and rely on the safety and security of the Bitcoin blockchain, with every transaction.

    Stacks connects to Bitcoin, enabling smart contracts and digital assets that are integrated with Bitcoin's security, capital, and network.

    Superior Yields Without the Risk.
    ALEX uses state-of-the-art collateral rebalancing pools to eliminate the risk of liquidation.

    ALEX is building a better financial system on top of Bitcoin that’s open, composable, and without intermediaries.

    Frequently Asked Questions

    What is ALEX?
    ALEX is an open-source DeFi protocol built on Bitcoin via Stacks Blockchain and modelled on the world’s financial markets.

    At ALEX you can
    • Launch your tokens.
    • Trade your tokens.
    • Lend BTC, USDC, and any Stacks or ALEX native tokens to earn fixed or variable interest.
    • Borrow without risk of liquidation.
    • Obtain high yield via Yield Farming.
    We strive to build a sound financial ‘world’ on Bitcoin, through Stacks’ smart contracts, with the most intuitive and clear user experience.
    When can I start using ALEX?
    Our Testnet is scheduled to launch on or around September 27, 2021. You can sign up here for registration.

    Our Mainnet launch is anticipated on or around November 30, 2021.
    Who are the key actors on ALEX?
    There are five actors on ALEX:
    • Project with its own tokens launches on ALEX to achieve decentralization and other goals.
    • Liquidity Provider provides liquidity and ensures smooth functioning of pools at ALEX.
    • Lender deposits tokens at fixed yield for a fixed term.
    • Borrower posts collateral and borrows tokens at a fixed yield for a fixed term.
    • Arbitrageur works with Liquidity Providers to ensure smooth functioning of pools at ALEX.
    Why Stacks?
    Stacks Blockchain makes Bitcoin programmable, enabling decentralized apps and smart contracts that inherit all of Bitcoin’s powers. A back-of-envelope calculation tells us that the DeFi market on Bitcoin could be as large as $300bn. We are one of the first DeFi projects on Stacks. And we are building the DeFi primitives essential to more sophisticated DeFi projects.

    For example, with ALEX on Stacks, Bitcoin holders will be able to lend and borrow Bitcoin with a superior user experience, and more competitive rates. Bitcoin traders can build sophisticated services and strategies on ALEX to provide liquidity, and participate in yield farming across multiple pools available at ALEX. Start-ups can issue tokens and ‘raise’ Bitcoin on ALEX to build better community-owned projects with low capital requirements from the team.
    What Collateralization Ratio (or Loan-to-Value) can we expect on ALEX?
    While details are being finalized, we can expect, for example, a collateralization ratio of 1.25x (i.e. 80% LTV) for a BTC loan against USD stablecoin collateral.

    Further, lending and borrowing on ALEX will not be subject to liquidation risk. All of this is made possible by our Collateral Rebalancing Pool, which dynamically rebalances between borrowed token and collateral to manage the default risk.
    What kind of transaction fee and speed do you require?
    The design of our Collateral Rebalancing Pool requires a low transaction fee. The transaction fee on Stacks at the moment is negligible.

    The Bitcoin block time may be slower than some other blockchains, but is fast enough for ALEX to provide great user experience and prudently manage the risks, and is a good trade-off considering the finality and security of settling into Bitcoin.

    Further, scaling independently of Bitcoin (with introduction of microblocks) ensures that Stacks transactions are fast enough for ALEX, while still benefiting from Bitcoin’s security and settlement.
    Will you provide cross chain capability?
    Yes, we will develop cross chain capability in the future. Our core architecture is not tied to Stacks.
    What’s your borrowing rate right now?
    Our lending and borrowing rates are market driven.
    What tokens can and will ALEX support?
    ALEX will support all native/SIP10-compatible tokens on Stacks.
    What is a Yield Token?
    A Yield Token, for example, yield-BTC-2020sep30, is like a "certificate of deposit" on BTC that pays fixed interest to its holder at a pre-defined maturity (that is, Sep 30, 2020).
    What is a Key Token?
    A Key Token represents the excess collateral a borrower posts over the loan amount. Unlike a Yield Token that converts to one Token at maturity, the final value of the Key Token is determined at maturity by comparing the value of the collateral and the loan amount. Because ALEX guarantees, through its reserve fund, the convertibility of a Yield Token into a Token at maturity, the final value of the Key Token can not fall below zero. A Key Token is similar to a call option on the collateral, and is a critical component that allows ALEX to offer on-chain margin swap.
    What is a Collateral Rebalancing Pool?
    A Collateral Rebalancing Pool ("CRP") uses a Weighted Equation and dynamically rebalances between Tokens and Collateral.

    ALEX’s CRP dynamically rebalances collateral to ensure the ayToken minted (i.e. the loan) remains solvent especially in an adverse market environment (i.e. the value of the loan does not exceed the value of collateral). This dynamic rebalancing, together with a careful choice of the key parameters (including LTV and volatility assumption) allows ALEX to eliminate the need for liquidation. Any residual gap risk (which the CRP cannot address entirely) is addressed through maintaining a strong reserve fund.
    What is a Liquidity Bootstrapping Pool?
    A Liquidity Bootstrapping Pool ("LBP") uses a Weighted Equation and is designed to facilitate a capital efficient launch of a token (the "Base Token") relative to another token (the "Target Token").

    A LBP was first offered by Balancer in 2020 and can be an interesting alternative to ICOs, IDOs or IEOs to bootstrap liquidity with little initial investment from the team.

    ALEX brings a LBP to Stacks, allowing Stacks projects to build deep liquidity and find its price efficiently with low capital requirements.

    LBPs can result in a significantly better-funded project whose governance tokens are more evenly distributed among the community. This means the tokens remain in the hands of those that are invested in the project in the long term, instead of speculators looking for quick profits.

    ALEX is the first open source DeFi protocol built on the Stacks Blockchain and modeled on the world’s financial markets.

    Partnering with Stacks allows ALEX to access the liquidity, power, and safety of Bitcoin’s 1tn dollar blockchain.

    Stacks makes Bitcoin a programmable base layer, enabling decentralized apps and smart contracts that inherit all of Bitcoin’s powers.

    What can I do on ALEX?

    • Lend your bitcoin and earn interest
    • Borrow Bitcoin at competitive rates
    • Mitigate risk with Bitcoin short positions
    • Maximize upside with Bitcoin leveraged long positions

    The Most Secure Way to Access DeFi

    On ALEX you can trade BTC and rely on the safety and security of the Bitcoin blockchain, with every transaction.

    Stacks connects to Bitcoin, enabling smart contracts and digital assets that are integrated with Bitcoin's security, capital, and network.

    Superior Yields Without the Risk.
    ALEX uses state-of-the-art collateral rebalancing pools to eliminate the risk of liquidation.

    ALEX is building a better financial system on top of Bitcoin that’s open, composable, and without intermediaries.

    Frequently Asked Questions

    What is ALEX?
    ALEX is an open-source DeFi protocol built on Bitcoin via Stacks Blockchain and modelled on the world’s financial markets.

    At ALEX you can
    • Launch your tokens.
    • Trade your tokens.
    • Lend BTC, USDC, and any Stacks or ALEX native tokens to earn fixed or variable interest.
    • Borrow without risk of liquidation.
    • Obtain high yield via Yield Farming.
    We strive to build a sound financial ‘world’ on Bitcoin, through Stacks’ smart contracts, with the most intuitive and clear user experience.
    When can I start using ALEX?
    Our Testnet is scheduled to launch on or around September 27, 2021. You can sign up here for registration.

    Our Mainnet launch is anticipated on or around November 30, 2021.
    Who are the key actors on ALEX?
    There are five actors on ALEX:
    • Project with its own tokens launches on ALEX to achieve decentralization and other goals.
    • Liquidity Provider provides liquidity and ensures smooth functioning of pools at ALEX.
    • Lender deposits tokens at fixed yield for a fixed term.
    • Borrower posts collateral and borrows tokens at a fixed yield for a fixed term.
    • Arbitrageur works with Liquidity Providers to ensure smooth functioning of pools at ALEX.
    Why Stacks?
    Stacks Blockchain makes Bitcoin programmable, enabling decentralized apps and smart contracts that inherit all of Bitcoin’s powers. A back-of-envelope calculation tells us that the DeFi market on Bitcoin could be as large as $300bn. We are one of the first DeFi projects on Stacks. And we are building the DeFi primitives essential to more sophisticated DeFi projects.

    For example, with ALEX on Stacks, Bitcoin holders will be able to lend and borrow Bitcoin with a superior user experience, and more competitive rates. Bitcoin traders can build sophisticated services and strategies on ALEX to provide liquidity, and participate in yield farming across multiple pools available at ALEX. Start-ups can issue tokens and ‘raise’ Bitcoin on ALEX to build better community-owned projects with low capital requirements from the team.
    What Collateralization Ratio (or Loan-to-Value) can we expect on ALEX?
    While details are being finalized, we can expect, for example, a collateralization ratio of 1.25x (i.e. 80% LTV) for a BTC loan against USD stablecoin collateral.

    Further, lending and borrowing on ALEX will not be subject to liquidation risk. All of this is made possible by our Collateral Rebalancing Pool, which dynamically rebalances between borrowed token and collateral to manage the default risk.
    What kind of transaction fee and speed do you require?
    The design of our Collateral Rebalancing Pool requires a low transaction fee. The transaction fee on Stacks at the moment is negligible.

    The Bitcoin block time may be slower than some other blockchains, but is fast enough for ALEX to provide great user experience and prudently manage the risks, and is a good trade-off considering the finality and security of settling into Bitcoin.

    Further, scaling independently of Bitcoin (with introduction of microblocks) ensures that Stacks transactions are fast enough for ALEX, while still benefiting from Bitcoin’s security and settlement.
    Will you provide cross chain capability?
    Yes, we will develop cross chain capability in the future. Our core architecture is not tied to Stacks.
    What’s your borrowing rate right now?
    Our lending and borrowing rates are market driven.
    What tokens can and will ALEX support?
    ALEX will support all native/SIP10-compatible tokens on Stacks.
    What is a Yield Token?
    A Yield Token, for example, yield-BTC-2020sep30, is like a "certificate of deposit" on BTC that pays fixed interest to its holder at a pre-defined maturity (that is, Sep 30, 2020).
    What is a Key Token?
    A Key Token represents the excess collateral a borrower posts over the loan amount. Unlike a Yield Token that converts to one Token at maturity, the final value of the Key Token is determined at maturity by comparing the value of the collateral and the loan amount. Because ALEX guarantees, through its reserve fund, the convertibility of a Yield Token into a Token at maturity, the final value of the Key Token can not fall below zero. A Key Token is similar to a call option on the collateral, and is a critical component that allows ALEX to offer on-chain margin swap.
    What is a Collateral Rebalancing Pool?
    A Collateral Rebalancing Pool ("CRP") uses a Weighted Equation and dynamically rebalances between Tokens and Collateral.

    ALEX’s CRP dynamically rebalances collateral to ensure the ayToken minted (i.e. the loan) remains solvent especially in an adverse market environment (i.e. the value of the loan does not exceed the value of collateral). This dynamic rebalancing, together with a careful choice of the key parameters (including LTV and volatility assumption) allows ALEX to eliminate the need for liquidation. Any residual gap risk (which the CRP cannot address entirely) is addressed through maintaining a strong reserve fund.
    What is a Liquidity Bootstrapping Pool?
    A Liquidity Bootstrapping Pool ("LBP") uses a Weighted Equation and is designed to facilitate a capital efficient launch of a token (the "Base Token") relative to another token (the "Target Token").

    A LBP was first offered by Balancer in 2020 and can be an interesting alternative to ICOs, IDOs or IEOs to bootstrap liquidity with little initial investment from the team.

    ALEX brings a LBP to Stacks, allowing Stacks projects to build deep liquidity and find its price efficiently with low capital requirements.

    LBPs can result in a significantly better-funded project whose governance tokens are more evenly distributed among the community. This means the tokens remain in the hands of those that are invested in the project in the long term, instead of speculators looking for quick profits.

    Sign up to learn more about ALEX.


      Thank you.

      We'll be in touch soon.