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alETH is a synthetic token that tracks Ethereum within the Alchemix ecosystem. Users lock ETH in the Alchemix protocol as collateral, then can borrow as much as 50% of the collateral’s value in alETH. The debt is designed to repay itself over time: the deposited collateral generates yield, which steadily pays back the borrowed alETH. As a result, alETH aims to give users liquidity without giving up their ETH exposure.
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