Repay your loan
Alchemix loans are fully flexible. Your funds are never locked and there are always options that allow you to release your deposits.
Unlike loans in the traditional banking system, there are no fees or penalties for early repayments. Not only that, Alchemix loans automagically repay themselves over time.
You can also choose to repay your loan manually. Let’s look at how to do this.
On the vaults page you can see that this account has a debt of $1050.35.
Since both alUSD and alETH have been borrowed, we need to decide which loan to repay. By using the filters we can display the debt owed for each alAsset type.
Let’s pay back the alUSD loan. Looking at the active vaults we can see that we’ve made a deposit in USDC in order to borrow alUSD. Since alUSD is a dollar-pegged asset we can use any acceptable stable coin to repay the loan.
We only have Dai available in our wallet, but since Alchemix accepts Dai as a collateral type, that’s no problem.
Click on the repay button which opens the repay dialog.
Select alUSD from the first dropdown, then select Dai from the next dropdown. It’s worth noting that the alUSD loan can be repaid in alUSD, Dai, USDC or USDT, regardless of which vault originated the loan.
We want to repay all of the alUSD loan so we’ll click ‘max’ in the input field.
Now press ‘repay’ and complete the transaction in your web3 wallet.
And, we’re done.
Next let’s look at how to repay our alETH loan with our deposited collateral using the liquidate function.