> For the complete documentation index, see [llms.txt](https://alchemix-finance.gitbook.io/v2/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://alchemix-finance.gitbook.io/v2/transmuterv2cover.md).

# TransmuterV2

The `TransmuterV2` is the main contract in any Alchemix debt-system that helps put upward pressure on the price of the debt-token relative to its collateral asset(s) by allowing any market participant to exchange the supported debt-token for underlying collateral at a 1:1 rate.

Each `TransmuterV2` supports a single `underlyingToken` as collateral, and is able to exchange `debtToken` for only that `underlyingToken`.

The `TransmuterV2` recieves `underlyingToken`s from the `AlchemistV2` whenever any of the `repay()`, `liquidate()`, or `harvest()` functions are called. The repaid, liquidated, or harvested collateral is first sent to the `TransmuterBuffer`, where excess funds that are not exchanged in the `TransmuterV2` can be deposited back into the `AlchemistV2` to boost yields for Alchemist depositors, or be deployed elsewhere to help maintain the peg.

When `debtToken`s are deposited into the `TransmuterV2`, a user recieves "exchanged tokens" into their account over time, representing the amount of `debtToken` that has been implicitly converted to `underlyingToken` that have dripped into the `TransmuterV2`. This rate of conversion is, at most, the rate that collateral is exchanged into the `TransmuterV2` multiplied by their overall percent stake of `debtTokens` in the `TransmuterV2`. While collateral recieved from `harvest()` calls has a relatively stable rate, collateral recieved from `repay()` and `liquidate()` functions are entirely user dependent, causing the overall transmutation rate to potentially fluctuate.

Additionally, there is a configurable **flow rate** in the `TransmuterBuffer` that can be used to control the flow of transmutable collateral. It acts as another cap on the speed at which funds are exchanged into the `TransmuterV2`. ![TransmuterBuffer flow rate](/files/mwm2iL6mgt0uyPjnbFew)

### [**Functions**](broken://pages/AaA6xYb6nwzuvywM9rAB)

### [**Interface**](/v2/transmuterv2cover/itransmuterv2.md)