Myth Finance's alcALGO pays Algorand staking yield in a game token

alcALGO is a liquid staking token from Myth Finance¹ that pays its yield in somebody else's token. A depositor puts in ALGO one-for-one plus some of Algo Leagues' ALC and receives alcALGO in return; later they redeem it for the same ALGO plus more ALC than they brought. In between, the pool's contract stakes the ALGO in Algorand consensus, collects the block rewards and has them swapped into ALC. No bank, broker or lock-up sits in the middle.

What makes the exchange interesting is what it trades: ordinary staking yield, converted into one small game's currency, with the fees taken out of the rewards rather than the deposit. The pool is also small enough to read end to end, and close enough to the floor at which Algorand stops paying to be worth watching.

What a deposit buys

Myth's documentation² sets out the trade. Minting takes ALGO at a fixed one-to-one rate plus ALC at the current mint rate, and returns as many alcALGO as the ALGO deposited. The contract's escrow account is registered for consensus, so block rewards land there. The platform and node-runner fees come off the top and the remainder is swapped through a Tinyman pool into ALC. Redeeming reverses it: one ALGO per token, plus a larger amount of ALC than the depositor brought, because rewards have been accumulating inside the contract.

Today the page shows 32,300.83³ ALGO staked and the same number of alcALGO in circulation. Beside them sit about 38.9 million⁴ ALC, a valuation of about 1.079⁵ ALGO per alcALGO, and an APR of 4.3%⁶ that the page prints without defining. The platform takes 2.5%⁷ of rewards and the node runner 4%⁸, both set in the contract. Minting and redeeming carry no platform fee at all. The pool launched on May 25, 2025, the day its escrow account and app were created, and that account is online in consensus.

That routing is the general part. Any ASA community Myth accepts can have a dualSTAKE pool of its own⁹, and anyone can add a farm that pays extra paired tokens on top of the consensus reward, which turns liquid staking into a way of pointing a community's staking yield at its own currency. A pool with no farm is just the consensus yield, and that is what alcALGO is: its page still invites the first ALC farm.

The books balance

The escrow account is where the money is, and it reconciles. It held 32,384.735615¹⁰ ALGO today. The contract's stored stake of 32,300.83¹¹ ALGO, plus 51.01¹² ALGO of platform fees and 32.59¹³ ALGO of node-runner fees accrued but not withdrawn, plus the account's 0.3¹⁴ ALGO minimum, account for that balance exactly. A holder's principal is not a promise; it is a balance. The alcALGO token itself cannot be frozen or clawed back, because both roles are empty and the chain will not accept them again.

The advertised fee is the fee that gets taken. On October 28 the escrow received 8.188562¹⁵ ALGO from Algorand's fee sink, sent 7.653501¹⁶ ALGO to the ALC/ALGO pool, received about 117,000 ALC back and kept 0.535061 ALGO, or 6.53%, against the 6.50% the page advertises.

Activity is modest and current. In the seven days before the check the pool proposed four blocks and made four swaps worth 30.82¹⁷ ALGO. alcALGO saw four transfers in the past thirty days. Since launch the escrow has taken in 125,947.59¹⁸ ALGO across 672¹⁹ payments from 23²⁰ payers and paid out 92,483.20²¹ ALGO. The app has had 630²² calls from 26²³ callers, 29 of them in the last month. A few large mints carry the stake: 8,825²⁴ alcALGO left the escrow to a depositor in April, then 2,435²⁵, 2,250²⁶ and 290²⁷ in May, 570²⁸ and 400²⁹ in June, and 700³⁰ in July. The most recent movement is a 1,525³¹ alcALGO redemption on October 28.

What the yield is worth

ALC is the Algo Leagues in-game token, earned by holding cards and winning battles and spent on season passes, wagers, boosts and cosmetics. Its entire market value was about $6,531³² at $0.00000653 a token on October 29, on $4.49 of 24-hour trading, with 3,093³³ holders.

The ALC leg works out at about 1,200³⁴ ALC per alcALGO at today's balance. At the price the pool's own swap got that week it is worth about 0.08³⁵ ALGO against the 1.079 the page credits the token with. Read that way, nearly all of a holder's value would be the ALGO itself, with the ALC the pool exists to produce the smaller part. The comparison prices the ALC at one week's trade rather than at the contract's own redemption rate, so it is an estimate and not a quote.

Trying it

Connect a wallet — the page offers Pera, Defly, Lute and an EVM wallet — enter an amount of ALGO, and the ALC the mint asks for at the current rate goes with it. No minimum is stated. The pool runs on Algorand mainnet, and depositing or withdrawing costs the network fee, with the platform's cut coming out of the rewards rather than the deposit.

Who runs it

Myth Finance does not name anyone. Its homepage is two product cards and links no team, about, terms or company page. Its GitHub organization³⁶ has nine repositories, a contact address at the project's own domain, and no public members. On chain the pool has an admin account and a fee-admin account, both set to Myth's own, and a node runner. The node runner can rotate the escrow's participation keys, take it online or offline, hand on the role and withdraw its fees, and the fee admin can perform the same actions.

The room it has

Algorand pays consensus rewards only to an account holding at least 30,000 ALGO, a threshold set by a Governance Period 10 vote³⁷. At 32,300.83³⁸ ALGO the pool sits about 2,300 ALGO above it. Myth's own rules³⁹ let it sunset a pool that stays below that line for most of four consecutive weeks: minting stops, the token comes off the main listings, and holders can still redeem while any tokens are in circulation. It has done it before: on February 5, 2026 it said⁴⁰ it had sunset the xusdALGO pool after an incident at CompX and asked holders to redeem.

Outside the contract, eight wallets hold alcALGO, and one of them holds 25,000⁴¹ of the tokens in circulation against 5,760 for the next largest. A single redemption of that size would take the pool through the 30,000 line on its own.

When PXke last wrote about the pool in August it held about 38,825⁴² ALGO across nine holders; it now reads 32,300.83⁴³, a net redemption of about 6,500 ALGO, or 17%, in under three months, and no reason for the decline has been given publicly. Across the whole protocol, DefiLlama⁴⁴ records $185,560⁴⁵ locked on October 29, down from a $1.12m⁴⁶ peak in July 2025.

What can go wrong

Control sits with the operator even though the money does not. The contract's code can be upgraded⁴⁷ after a one-week time lock against hashes published in advance, and the admin account can be handed to another address with immediate effect. It has been upgraded once, on January 15, 2026. Fee increases are delayed a week and capped at 2.5 percentage points per change, while decreases apply at once.

Neither the project's documentation nor DefiLlama's protocol record names a third-party audit; the record counts zero for Myth and two for the comparable xALGO. The docs describe a protest mechanism⁴⁸ that lets holders lock their tokens against a scheduled upgrade; the contract records no protest at present.

The rest of the yield is only as good as ALC's market: with $4.49 traded in a day, converting a meaningful amount of ALC into ALGO would move the price or fail to fill.

The alternative

Folks Finance's xALGO⁴⁹ is the same idea without a paired token, and one xALGO is worth 1.2329⁵⁰ ALGO there, against a staked balance of about 260 million ALGO, 6,619⁵¹ holders and a current APR of 4.28%⁵², as its own page reports. It carries far more stake and a pair of recorded audits. The choice a reader faces is between a yield that arrives in ALGO's own units and one that arrives in a game token.

Where it fits

alcALGO suits someone who already wants ALC, an Algo Leagues player who would rather earn the game's currency than buy it, and who is content to leave a stake in a pool with one dominant holder and a modest buffer above the line where rewards stop. The trade-off is that the extra yield is worth little today and could be worth nothing to a seller, while the ALGO behind it stays accounted for and cannot be frozen. The two things that would change the picture are the staked figure against 30,000 ALGO¹ and the next code upgrade, which the contract must publish a week ahead.