Alchemint is the NEO ecosystem’s stable coin. Here are some quick points to help one understand better how Alchemint works.

Alchemint will provide a way for holders of NEO to utilize their holdings for real world expenditures, through Smart Assets Reserve (SAR).

Alchemint has two kinds of token. The utility token referred to as SDT and the stable coins SDUSD and SDCNY. SDUSD = 1USD and SDCNY = 1CNY.

When one creates a SAR he will need to collateralize his NEO. In return he will receive a certain amount of SDUSD. (Ie. User creates a SAR when 1 NEO @ $100 USD, he gets 50 SDUSD).

When closing a SAR and redeeming collateralized NEO, one will need to use SDT to pay the system. A certain amount of SDT is needed based on how much NEO was held in the SAR. The SDT that was used in claiming will be burned in the process .

. There will be lesser and lesser amount of SDT as more and more people use Alchemint. This in turn will make the value of SDT rise in time. In theory, the ecosystem will never run out of SDT because as the value of SDT rises, there will be lesser SDT needed to close a SAR.

Alchemint is very different compared to Tether. With tether, you SELL your 1 NEO for example at 100 usdt, when neo rises to 120 you will need 120 USDT to buy back your 1 NEO. With Alchemint, you COLLATERALIZE 2 NEO at $100 each to get $100 SDUSD(2:1). You can use that to buy 1 more NEO. Then if for example, in 7 days NEO rises to $120, you will just need to pay x amount of SDT (SDT is far cheaper than 1 NEO value. Maybe for example that time SDT=$0.5) and you will get your 2 NEO back.

In the event that NEO drops in price, in relation to our example above would be $75, you will need to collateralize more NEO in order to keep your SAR and to keep the stability of the stable coins. Failure to do so, your SAR will be automatically liquidated.

Alchemint will give you extra liquidity which you can use to increase your position on any crypto you want. If possible though, buy NEO with it :)

During the ICO, investors will be buying SDT which is also considered as a share or stake in the ecosystem. The incentive of buying SDT at exchanges (or ICO) is that there will be lesser and lesser SDT in existence as it is used up to pay (and subsequently burned) when redeeming NEO in collateral, hence the price of SDT will be higher and higher over time.

*Update March 29, 2018*

The amount of SDT that one needs to pay to the system (stabilization fee) to redeem his NEO collateral is calculated using the following example scenario.

User collateralize 10 NEO at $100 each, he gets 500 SDUSD.

After 6 months, he decides to redeem his 10 NEO.

Price of SDT when he decides to close his SAR & redeem his NEO is $0.35

Stabilization rate is 1% per year.

Stabilization fee would be:

(SDUSD * Yearly Rate) / Price of SDT in USD

(500 SDUSD * .5%) / 0.35 = 7.14265714 SDT

** This article is meant to be a very brief summary in an attempt to quickly explain how Alchemint works. Please visit alchemint.io for a more details. **

Presale is over. ICO dates and details will be announced soon. Please be patient and be careful of scammers. Only trust announcements you see on the official website!