Alux
Borrow & lend MXN on-chain
The problem Alux solves
Before Alux, DeFi users in Mexico couldn’t borrow or lend in their local currency. Most protocols are USD-only, creating FX risks and excluding peso-based use cases.
Alux fixes this by launching the first on-chain money market for MXN. Users can borrow stablecoins like MXNe using ETH or USDC as collateral — enabling local leverage, arbitrage, and peso-native DeFi.
We’re also collaborating with Etherfuse to onboard CETES as collateral, unlocking powerful yield strategies like looping with Mexican government bonds — something never before accessible in DeFi.
Challenges we ran into
One key challenge was bringing a reliable USD/MXN oracle on-chain — essential for accurate collateral valuations. We solved this by implementing a variation of a Pyth contract tailored to our needs.
Another major hurdle was bootstrapping initial liquidity. Without deposits, the money market couldn’t function. Thankfully, traction grew quickly, and we secured over 100,000 MXNe in deposits, enabling real borrowing in pesos — a DeFi primitive never seen before.
Tracks Applied (2)
Stablecoins
DeFi
Technologies used
Cheer Project
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