Topic: Amulet - defi web3 cover protocol - page 2. (Read 1742 times)
I do work every day am top 50 but am waiting for presale when it will start still there is no news.
Pricing Model Amulet Protocol
The risk protection business is an endeavor to hedge against uncertain future loss, in which the covered person trades risk with RPPs through payments for cover products.
Product pricing is at the heart of any risk protection business and Amulet builds its pricing model based on proven practices and historical data.
The aim of product pricing is to find and charge a fair, affordable, and competitive price for users. It should reflect the risks undertaken by the protocol and be quick to adapt
to fast-changing risk settings. Amulet's pricing models enable it to get a fair estimate on expected losses, reduce costs for users, and enhance the protocol's long term
viability.
Amulet's pricing models take a multi-faceted approach when determining risk. For example, its Smart Contract Cover uses audit reports, operational history, team info,
etc. to generate a base rating for a protocol. The base rating, along with protocol APY and supply-demand factors, will be used to determine a cover product's price. Supply
and demand is typically measured via a bonding curve between price and cover capacity. Basically the more capacity available, the lower the cover product's price and
vice-versa.
Stablecoin De-peg Cover rely on economic simulations of historical data to test and identify the initial limits of the cover product, followed by further refinement through
the incorporation of data from current market indicators and forward-looking assumptions. Amulet will carefully select and define these limits at the start, then
constantly refine the product as it receives new information.
As more and more data becomes available, Amulet will be able to develop and fine tune increasingly sophisticated data-driven pricing models with the help of Machine Learning technology.
The risk protection business is an endeavor to hedge against uncertain future loss, in which the covered person trades risk with RPPs through payments for cover products.
Product pricing is at the heart of any risk protection business and Amulet builds its pricing model based on proven practices and historical data.
The aim of product pricing is to find and charge a fair, affordable, and competitive price for users. It should reflect the risks undertaken by the protocol and be quick to adapt
to fast-changing risk settings. Amulet's pricing models enable it to get a fair estimate on expected losses, reduce costs for users, and enhance the protocol's long term
viability.
Amulet's pricing models take a multi-faceted approach when determining risk. For example, its Smart Contract Cover uses audit reports, operational history, team info,
etc. to generate a base rating for a protocol. The base rating, along with protocol APY and supply-demand factors, will be used to determine a cover product's price. Supply
and demand is typically measured via a bonding curve between price and cover capacity. Basically the more capacity available, the lower the cover product's price and
vice-versa.
Stablecoin De-peg Cover rely on economic simulations of historical data to test and identify the initial limits of the cover product, followed by further refinement through
the incorporation of data from current market indicators and forward-looking assumptions. Amulet will carefully select and define these limits at the start, then
constantly refine the product as it receives new information.
As more and more data becomes available, Amulet will be able to develop and fine tune increasingly sophisticated data-driven pricing models with the help of Machine Learning technology.
Cross-Chain Expansion
Amulet’s initial deployment will be on Solana given its rapid growth and potential. Amulet also plans ambitions to expand to other Rust-based ecosystems such as Near
and Cosmos, offering protection to user and protocols on other chains. Amulet firmly believes that risk protection solutions should be made available to all
users and protocols regardless of the chain they operate in. It aims to create the safety standard for users and the adoption of blockchain technologies.
Amulet’s initial deployment will be on Solana given its rapid growth and potential. Amulet also plans ambitions to expand to other Rust-based ecosystems such as Near
and Cosmos, offering protection to user and protocols on other chains. Amulet firmly believes that risk protection solutions should be made available to all
users and protocols regardless of the chain they operate in. It aims to create the safety standard for users and the adoption of blockchain technologies.
Conclusion
The risk protection sector, although a seemingly niche area, is critical to the safe and robust development of DeFi, much like how insurance or other modes of financial
protection has been responsible for the massive growth of commerce into the global behemoth that we have today. Knowing risk protection needs have been met and
potential risks mitigated is key to unlocking DeFi's global userbase and develop safetyminded DeFi.
Amulet is extremely excited to bring security to its users by offering simple, reliable cover at scale, backed by sustainable investments and prudent capital management.
In setting the standard for safety and proper risk management, Amulet will be a fundamental building block for protocol development on Solana, all Rust-based
ecosystems, and the future of open finance. Whether you are a potential contributor, investor, or just here for the ride, Amulet welcomes and looks forward to having you
in its community.
The risk protection sector, although a seemingly niche area, is critical to the safe and robust development of DeFi, much like how insurance or other modes of financial
protection has been responsible for the massive growth of commerce into the global behemoth that we have today. Knowing risk protection needs have been met and
potential risks mitigated is key to unlocking DeFi's global userbase and develop safetyminded DeFi.
Amulet is extremely excited to bring security to its users by offering simple, reliable cover at scale, backed by sustainable investments and prudent capital management.
In setting the standard for safety and proper risk management, Amulet will be a fundamental building block for protocol development on Solana, all Rust-based
ecosystems, and the future of open finance. Whether you are a potential contributor, investor, or just here for the ride, Amulet welcomes and looks forward to having you
in its community.
Cover Acceleration Program
In order to bootstrap underwriting capacity for certain products and generate higher returns for underwriters, Amulet's Cover Acceleration Program (CAP) will engage with
covered protocols' teams to accelerate cover adoption.
For example, when smart contract cover is launched for Protocol A, its initial price may be high due to limited capacity as underwriters may not have as strong an incentive to
back the risk versus older cover products. Protocol A can incentivize underwriters with its native tokens or other rewards and additionally $AMT rewards jointly sponsored
with Amulet. This helps to increase Amulet's cover capacity and reduce costs for cover purchaser while underwriters earn more rewards. Additionally, pool rewards allocated
by Protocol A may serve as an additional buffer against claim payouts.
The CAP will initially apply to Smart Contract Cover before expanding to other cover products on Amulet. As Amulet sees it, everyone stands to benefit from the CAP. Users
have access to more options for risk protection, protocols are able to attract more users, underwriters safely earn rewards on their principal, and Amulet is able to extend
and expand its product offerings to more users.
In order to bootstrap underwriting capacity for certain products and generate higher returns for underwriters, Amulet's Cover Acceleration Program (CAP) will engage with
covered protocols' teams to accelerate cover adoption.
For example, when smart contract cover is launched for Protocol A, its initial price may be high due to limited capacity as underwriters may not have as strong an incentive to
back the risk versus older cover products. Protocol A can incentivize underwriters with its native tokens or other rewards and additionally $AMT rewards jointly sponsored
with Amulet. This helps to increase Amulet's cover capacity and reduce costs for cover purchaser while underwriters earn more rewards. Additionally, pool rewards allocated
by Protocol A may serve as an additional buffer against claim payouts.
The CAP will initially apply to Smart Contract Cover before expanding to other cover products on Amulet. As Amulet sees it, everyone stands to benefit from the CAP. Users
have access to more options for risk protection, protocols are able to attract more users, underwriters safely earn rewards on their principal, and Amulet is able to extend
and expand its product offerings to more users.
Love this i join since 1 month working every there main net is live amulet will be strong solona project future is looks good still waiting for there presale when it will start ?
Treasury Pool
The Treasury Pool is a key element of PCR. Income expected to expand the Treasury Pool's size includes:
• A portion of PoS staking rewards generated by staked $SOL.
• A portion of cover payments earned from cover sales.
• A portion of investment returns generated from staked assets, such as $mSOL, $stSOL, and $aUWT.
• Other revenue and fees generated by Amulet (e.g. LP rewards, CAP rewards).
The treasury pool will be earmarked in the following manner:
1) Claims Reserve: x% reserved for large claims and to grow core funds through reinvestment in the underwriting pool.
2) Value Accrual Activities: y% to purchase and redistribute $AMT tokens to longterm $AMT holders ($AMT buybacks and redistribution will be limited at first and eventually increased as Amulet builds up to a critical mass of funds or reserves).
3) Development Costs: z% to fund development.
x% / y% / z% will initially be set as 90% / 10% / 0% and subject to change in future governance decisions.
The Treasury Pool is a key element of PCR. Income expected to expand the Treasury Pool's size includes:
• A portion of PoS staking rewards generated by staked $SOL.
• A portion of cover payments earned from cover sales.
• A portion of investment returns generated from staked assets, such as $mSOL, $stSOL, and $aUWT.
• Other revenue and fees generated by Amulet (e.g. LP rewards, CAP rewards).
The treasury pool will be earmarked in the following manner:
1) Claims Reserve: x% reserved for large claims and to grow core funds through reinvestment in the underwriting pool.
2) Value Accrual Activities: y% to purchase and redistribute $AMT tokens to longterm $AMT holders ($AMT buybacks and redistribution will be limited at first and eventually increased as Amulet builds up to a critical mass of funds or reserves).
3) Development Costs: z% to fund development.
x% / y% / z% will initially be set as 90% / 10% / 0% and subject to change in future governance decisions.
Protocol Controlled Reserves
Existing DeFi RPPs rely on external underwriters to provide capital for claim payouts and cover capacity. This is effectively the same as renting liquidity from stakers. While
renting underwriting capital is effective in the short to medium-term, it does raise some serious issues that may greatly impact the scalability and sustainability of RPPs.
For example:
• In the face of outsized claims, underwriters may race to withdraw their capital, leading to insufficient claim payouts and subsequently reduced TVL
and future underwriting capacity for the RPP as underwriters look to mitigate and recoup their losses.
• Due to concerns over losing underwriting capital, many underwriters are unwilling to participate in RPPs.
• RPPs lockup or impose other restrictions on underwriting capital in their capital pools when claims are submitted in order to protect the functioning of the claims process. This method reduces user experience and hinders participation in the space.
• Yield generated from RPPs are generally not as competitive when compared to other DeFi protocols, hence users do not have a strong incentive to stake with RPPs. Some protocols use their token emissions to supplement their APY, but this is obviously not sustainable and puts downward price pressure on their governance tokens.
Hence, RPPs usually have smaller TVL compared to AMM, lending, and other DeFi protocols. The value of their governance tokens is also difficult to estimate given the uncertain risk of claim payouts weighing on RPPs' prospects.
Existing DeFi RPPs rely on external underwriters to provide capital for claim payouts and cover capacity. This is effectively the same as renting liquidity from stakers. While
renting underwriting capital is effective in the short to medium-term, it does raise some serious issues that may greatly impact the scalability and sustainability of RPPs.
For example:
• In the face of outsized claims, underwriters may race to withdraw their capital, leading to insufficient claim payouts and subsequently reduced TVL
and future underwriting capacity for the RPP as underwriters look to mitigate and recoup their losses.
• Due to concerns over losing underwriting capital, many underwriters are unwilling to participate in RPPs.
• RPPs lockup or impose other restrictions on underwriting capital in their capital pools when claims are submitted in order to protect the functioning of the claims process. This method reduces user experience and hinders participation in the space.
• Yield generated from RPPs are generally not as competitive when compared to other DeFi protocols, hence users do not have a strong incentive to stake with RPPs. Some protocols use their token emissions to supplement their APY, but this is obviously not sustainable and puts downward price pressure on their governance tokens.
Hence, RPPs usually have smaller TVL compared to AMM, lending, and other DeFi protocols. The value of their governance tokens is also difficult to estimate given the uncertain risk of claim payouts weighing on RPPs' prospects.
Governance
$AMT is Amulet's governance token. It primarily gives $AMT token holders the right to vote and participate through governance in the protocol's development and initiatives
such as but limited to treasury utilization and rewards distribution, claim validity, target capital requirements, new products listing, treasury buyback thresholds, determining future protocol objectives, etc.
$AMT is Amulet's governance token. It primarily gives $AMT token holders the right to vote and participate through governance in the protocol's development and initiatives
such as but limited to treasury utilization and rewards distribution, claim validity, target capital requirements, new products listing, treasury buyback thresholds, determining future protocol objectives, etc.
Yield Backed Claim Payout
In order to build up PCR and minimize drawdowns on underwriters' capital, a tranche is built into Amulet's claim payout structure. This tranche is backed by future revenues
and therefore dubbed as Yield Backed Claim ("YBC"). What this means is that Amulet is collateralizing revenues that it is expected to earn in the near future in order to mint
more $aUWT for claim payouts so as to safeguard underwriters' capital against claims.
When a claim payout is approved, the necessary funds will be drawn from different
payout tranches in the sequence outlined below:
1. Yield Backed Claim Pool.
2. Claims Reserve in the Treasury Pool.
3. Product Underwriting Pool (i.e., If there is a claim on Cover Product A, only the $aUWT staked in Cover Product A's underwriting pool will be affected).
This way, underwriting capital contributed by underwriters will be least affected. Underwriters can be confident that their principal is SAFU while generating
considerable earnings through the various yield generation opportunities available on Amulet.
The time period which Amulet uses to determine the amount of revenue to collateralize for YBC will shrink progressively as Amulet builds up the PCR. Under no circumstances will the said time period's duration extend beyond its initial parameters .
In order to build up PCR and minimize drawdowns on underwriters' capital, a tranche is built into Amulet's claim payout structure. This tranche is backed by future revenues
and therefore dubbed as Yield Backed Claim ("YBC"). What this means is that Amulet is collateralizing revenues that it is expected to earn in the near future in order to mint
more $aUWT for claim payouts so as to safeguard underwriters' capital against claims.
When a claim payout is approved, the necessary funds will be drawn from different
payout tranches in the sequence outlined below:
1. Yield Backed Claim Pool.
2. Claims Reserve in the Treasury Pool.
3. Product Underwriting Pool (i.e., If there is a claim on Cover Product A, only the $aUWT staked in Cover Product A's underwriting pool will be affected).
This way, underwriting capital contributed by underwriters will be least affected. Underwriters can be confident that their principal is SAFU while generating
considerable earnings through the various yield generation opportunities available on Amulet.
The time period which Amulet uses to determine the amount of revenue to collateralize for YBC will shrink progressively as Amulet builds up the PCR. Under no circumstances will the said time period's duration extend beyond its initial parameters .
Amulet Protocol
Existing Challenges
There are several notable impediments to existing decentralized RPPs growth and
sustainability:
a. Capital and User Acquisition
RPPs are faced with a two-pronged problem of acquiring and retaining staked capital. There is inherent risk of losing principal while at the same time, intense competition for user capital across a high APY environment. Yield fluctuations alone can cause liquidity locusts to appear, causing many protocols to be at the mercy of stakers and forcing some to increase rewards just to retain staked capital. This does not appear to be a sustainable solution and could result in a debt spiral which becomes more and more difficult to get out of over time.
b. Network Building
Building up distribution channels to increase coverage and capacity while maintaining appropriate risk control is difficult. The importance of having strong networks cannot be stated strongly enough for RPPs. Their business and operating model is fundamentally that of a conduit for collective risk pooling and mutual aid. Oftentimes, having cover is an afterthought that occurs once a user or protocol has been rugged, hacked or somehow exploited even though these risks were known ahead of time. Investors and protocols that have cover can be liberated from some of these risks and delve deeper into their crypto journeys in a safe manner. Although it is an uphill battle, Amulet believes user education on proactive risk management to be a worthy endeavor.
c. Capital Management
In the event of catastrophic losses, underwriters might rush to withdraw funds to minimize the impact of such claims on their principal. While understandable from the underwriters’ perspective, this creates a potential threat to the protocol’s sustainability. Until the protocol reaches critical mass in funds (i.e. able to selfmanage payments for incoming claims with cover payments and associated investment earnings), that threat will remain omnipresent. This problem is further exacerbated by the lack of an effective risk management framework which makes it difficult to understand whether risks have been priced appropriately. Without effective capital management, protocol's run the risk of not having the necessary capital structure and allocations in place to guard against a "bank-run" on the protocol.
d. Claims Processing
It is difficult to ensure an impartial and efficient claim process while trying to align the interests of many different parties at the same time. For example, underwriters are incentivized to minimize payouts since they are paid based on the protocol's overall profitability (cover payments received less claims paid). However, claimants want to minimize cover payments and increase their potential payout. Satisfying these two parties already poses several challenges on top investor, community, and partner concerns, as well as the reputational challenges faced by RPPs in general.
Existing Challenges
There are several notable impediments to existing decentralized RPPs growth and
sustainability:
a. Capital and User Acquisition
RPPs are faced with a two-pronged problem of acquiring and retaining staked capital. There is inherent risk of losing principal while at the same time, intense competition for user capital across a high APY environment. Yield fluctuations alone can cause liquidity locusts to appear, causing many protocols to be at the mercy of stakers and forcing some to increase rewards just to retain staked capital. This does not appear to be a sustainable solution and could result in a debt spiral which becomes more and more difficult to get out of over time.
b. Network Building
Building up distribution channels to increase coverage and capacity while maintaining appropriate risk control is difficult. The importance of having strong networks cannot be stated strongly enough for RPPs. Their business and operating model is fundamentally that of a conduit for collective risk pooling and mutual aid. Oftentimes, having cover is an afterthought that occurs once a user or protocol has been rugged, hacked or somehow exploited even though these risks were known ahead of time. Investors and protocols that have cover can be liberated from some of these risks and delve deeper into their crypto journeys in a safe manner. Although it is an uphill battle, Amulet believes user education on proactive risk management to be a worthy endeavor.
c. Capital Management
In the event of catastrophic losses, underwriters might rush to withdraw funds to minimize the impact of such claims on their principal. While understandable from the underwriters’ perspective, this creates a potential threat to the protocol’s sustainability. Until the protocol reaches critical mass in funds (i.e. able to selfmanage payments for incoming claims with cover payments and associated investment earnings), that threat will remain omnipresent. This problem is further exacerbated by the lack of an effective risk management framework which makes it difficult to understand whether risks have been priced appropriately. Without effective capital management, protocol's run the risk of not having the necessary capital structure and allocations in place to guard against a "bank-run" on the protocol.
d. Claims Processing
It is difficult to ensure an impartial and efficient claim process while trying to align the interests of many different parties at the same time. For example, underwriters are incentivized to minimize payouts since they are paid based on the protocol's overall profitability (cover payments received less claims paid). However, claimants want to minimize cover payments and increase their potential payout. Satisfying these two parties already poses several challenges on top investor, community, and partner concerns, as well as the reputational challenges faced by RPPs in general.
Claim Process
Amulet intends to use a hybrid claims process to simplify its procedure and ensure
fairness for its users. This hybrid process will consist of a programmatic claims process
for parametric cover products, and a voting-based claim process for non-parametric
products.
Programmatic Claims
This approach is suitable for parameterized cover products, such as stablecoin de-peg
cover. Its trigger criteria are clear and simple enough to be programmed and
automatically executed when the necessary conditions are met (e.g. stablecoin falls a
certain predefined amount below its peg). Users will be able to enjoy a much faster
claims process and greatly reduced burden to supply proof of loss. At the same time,
Amulet will be able focus more on protocol development and bringing industry-leading
products to market.
Vote-based Claims
For non-parameterized cover products such as smart contract risk or custodian risk
where risk events or exploits are not yet easily verified, a vote-based claims process is
required.
Generally, after a Claimant submits a valid claim along with the necessary evidence
within a specified time period, a Claim Committee will investigate the claim and
evidence then vote to approve, partially approve, or reject a payout. There will also be
an appeal process where Claimants can appeal to the Claim Committee to reconsider
its decision based on new and different evidence. A deposit fee is charged for claim
submission and appeal. More up-to-date details will be set out on Amulet's website.
Therefore, Amulet will be balancing speed with fairness through its automated and
manual claims processes.
Amulet intends to use a hybrid claims process to simplify its procedure and ensure
fairness for its users. This hybrid process will consist of a programmatic claims process
for parametric cover products, and a voting-based claim process for non-parametric
products.
Programmatic Claims
This approach is suitable for parameterized cover products, such as stablecoin de-peg
cover. Its trigger criteria are clear and simple enough to be programmed and
automatically executed when the necessary conditions are met (e.g. stablecoin falls a
certain predefined amount below its peg). Users will be able to enjoy a much faster
claims process and greatly reduced burden to supply proof of loss. At the same time,
Amulet will be able focus more on protocol development and bringing industry-leading
products to market.
Vote-based Claims
For non-parameterized cover products such as smart contract risk or custodian risk
where risk events or exploits are not yet easily verified, a vote-based claims process is
required.
Generally, after a Claimant submits a valid claim along with the necessary evidence
within a specified time period, a Claim Committee will investigate the claim and
evidence then vote to approve, partially approve, or reject a payout. There will also be
an appeal process where Claimants can appeal to the Claim Committee to reconsider
its decision based on new and different evidence. A deposit fee is charged for claim
submission and appeal. More up-to-date details will be set out on Amulet's website.
Therefore, Amulet will be balancing speed with fairness through its automated and
manual claims processes.
Roadmap Amulet
Amulet has an ambitious roadmap ahead of itself. Here are a some key milestones to look forward to:
Q1 2022
Project Initialization
Product design and development
Seed funding
Early partnership development
Q2 2022
Official launch
Early testing and site launch
Open staking functions
Roll-out of major cover product offerings
Token public sale
Q3/Q4 2022
Improved staking and investment functionality
Full spectrum coverage for Solana ecosystem
B2B cover services
Metaverse products
Q1 2023+
Additional product, web, and smart contract enhancements
Multi-chain expansion to other Rust-based ecosystems
Cover for Web3.0 and beyond
Amulet has an ambitious roadmap ahead of itself. Here are a some key milestones to look forward to:
Q1 2022
Project Initialization
Product design and development
Seed funding
Early partnership development
Q2 2022
Official launch
Early testing and site launch
Open staking functions
Roll-out of major cover product offerings
Token public sale
Q3/Q4 2022
Improved staking and investment functionality
Full spectrum coverage for Solana ecosystem
B2B cover services
Metaverse products
Q1 2023+
Additional product, web, and smart contract enhancements
Multi-chain expansion to other Rust-based ecosystems
Cover for Web3.0 and beyond
Phased Execution Path
As Amulet grows and reaches its key milestones, the following initiatives will commence:
Project Initiation – Limited underwriting with with greater emphasis on investments to bootstrap treasury pool assets. Cover products will be offered on a limited basis for specified protocols at this stage. This will continue until the Treasury Pool reaches critical mass and its income-generating potential stabilizes. Early $AMT lockers will receive special rewards.
Treasury Pool Critical Mass – Size of claims reserve and associated collateralized future revenues (i.e., YBC) is sufficient to withstand economic shocks as defined by Solvency II standards. Accelerated distribution of investment and other treasury income will commence while rewards for locked $AMT will begin to reduce.
Growth Phase – Projected and actual loss ratios monitored to track performance and execute on improvements so that the protocol can better withstand economic shocks. Emphasis on the continued acceleration of treasury income while $AMT emissions are throttled. Leverage on underwriting capital can be increased to generate new business and underwrite larger covers.
Hypergrowth And Beyond – Defined as the point when cover purchasers and regular treasury income can withstand incoming claims without the need to draw on capital tranches. Treasury $AMT buyback operations can help increase capital staked, thereby allowing for greater cover capacity, which in turn generates more cover payments and leads to further treasury growth and value accrual.
As Amulet grows and reaches its key milestones, the following initiatives will commence:
Project Initiation – Limited underwriting with with greater emphasis on investments to bootstrap treasury pool assets. Cover products will be offered on a limited basis for specified protocols at this stage. This will continue until the Treasury Pool reaches critical mass and its income-generating potential stabilizes. Early $AMT lockers will receive special rewards.
Treasury Pool Critical Mass – Size of claims reserve and associated collateralized future revenues (i.e., YBC) is sufficient to withstand economic shocks as defined by Solvency II standards. Accelerated distribution of investment and other treasury income will commence while rewards for locked $AMT will begin to reduce.
Growth Phase – Projected and actual loss ratios monitored to track performance and execute on improvements so that the protocol can better withstand economic shocks. Emphasis on the continued acceleration of treasury income while $AMT emissions are throttled. Leverage on underwriting capital can be increased to generate new business and underwrite larger covers.
Hypergrowth And Beyond – Defined as the point when cover purchasers and regular treasury income can withstand incoming claims without the need to draw on capital tranches. Treasury $AMT buyback operations can help increase capital staked, thereby allowing for greater cover capacity, which in turn generates more cover payments and leads to further treasury growth and value accrual.
Tokenomics
The main tokens in Amulet's ecosystem are:
$AMT: Amulet's governance token which gives holders the right to take part in the protocol's governance.
$amtSOL: The interest-bearing token as well as liquid derivative of $SOL staked by users in Amulet's liquid staking pool.
$aUWT: The underwriting token issued for liquid derivatives of $SOL staked in Amulet's underwriting pool (eg. $amtSOL, $mSOL, $stSOL, etc).
The main tokens in Amulet's ecosystem are:
$AMT: Amulet's governance token which gives holders the right to take part in the protocol's governance.
$amtSOL: The interest-bearing token as well as liquid derivative of $SOL staked by users in Amulet's liquid staking pool.
$aUWT: The underwriting token issued for liquid derivatives of $SOL staked in Amulet's underwriting pool (eg. $amtSOL, $mSOL, $stSOL, etc).
Risk Management
Amulet's risk management can be broken down into several key functions:
1. Capital adequacy and management
Adhering with Solvency II requirements creates a desirable level of safety when underwriting risk. It builds a protective moat around Amulet's capital base and ensures there is sufficient reserves for making claim payouts.
2. Layered risk controls
Several layers of risk controls have been built into Amulet to ensure funds are safe and that the business remains sound:
Technical checks to ensure base level protocol safety, including code auditing, bug bounty program, and continuous testing.
Careful selection of protocols to be covered through rigorous risk assessment.
Identifying over-concentration of risk from the chain level down to individual product level and risk types in order to avoid catastrophic drawdowns by certain covers.
Mechanisms such as an emergency kill-switch to suspend all or some business activities to head-off suspicious transactions.
Clear cover terms and conditions properly detailing the scope of coverage and claims process amongst other particulars.
3. On-chain risk alerts
On-chain data monitoring, analysis, and alerts serve as timely and valuable signals for Amulet to respond rapidly, such as notifications of covered protocols' security status, cover product price adjustments, or the occurrence of a risk event. Amulet has adopted many best practices in this area and continues to work with several other projects to enhance its risk monitoring capabilities.
Amulet's risk management can be broken down into several key functions:
1. Capital adequacy and management
Adhering with Solvency II requirements creates a desirable level of safety when underwriting risk. It builds a protective moat around Amulet's capital base and ensures there is sufficient reserves for making claim payouts.
2. Layered risk controls
Several layers of risk controls have been built into Amulet to ensure funds are safe and that the business remains sound:
Technical checks to ensure base level protocol safety, including code auditing, bug bounty program, and continuous testing.
Careful selection of protocols to be covered through rigorous risk assessment.
Identifying over-concentration of risk from the chain level down to individual product level and risk types in order to avoid catastrophic drawdowns by certain covers.
Mechanisms such as an emergency kill-switch to suspend all or some business activities to head-off suspicious transactions.
Clear cover terms and conditions properly detailing the scope of coverage and claims process amongst other particulars.
3. On-chain risk alerts
On-chain data monitoring, analysis, and alerts serve as timely and valuable signals for Amulet to respond rapidly, such as notifications of covered protocols' security status, cover product price adjustments, or the occurrence of a risk event. Amulet has adopted many best practices in this area and continues to work with several other projects to enhance its risk monitoring capabilities.
Amulet
Amulet is a new DeFi (decentralized finance) coverage protocol for Rust-based ecosystems.
Amulet is being built with the prospect of simple, reliable insurance for everyone in Web3. The solution will be the first to be built on the Solana network and has been backed by Solana Ventures, who are also investors in the project.
At its core, Amulet has developed a solution to bridge the gap between those who invest in underwriting and those who buy coverage.
Invested: $6M
Investors: lead: Cryptos Capital, with participation from Republic Capital, Solana Ventures, DeFiance Capital, Animoca Brands, United Overseas Bank, Signum Capital, Mirana Ventures, NGC Ventures, LongHash Ventures, SevenX Ventures, CMT Digital, Matrixport Ventures, a41 Ventures, Solar Eco Fund, Daedalus, Cobo Wallet and Re7 Capital.
Amulet is a new DeFi (decentralized finance) coverage protocol for Rust-based ecosystems.
Amulet is being built with the prospect of simple, reliable insurance for everyone in Web3. The solution will be the first to be built on the Solana network and has been backed by Solana Ventures, who are also investors in the project.
At its core, Amulet has developed a solution to bridge the gap between those who invest in underwriting and those who buy coverage.
Invested: $6M
Investors: lead: Cryptos Capital, with participation from Republic Capital, Solana Ventures, DeFiance Capital, Animoca Brands, United Overseas Bank, Signum Capital, Mirana Ventures, NGC Ventures, LongHash Ventures, SevenX Ventures, CMT Digital, Matrixport Ventures, a41 Ventures, Solar Eco Fund, Daedalus, Cobo Wallet and Re7 Capital.
Amulet comprised of three option: Earn, Cover, and Underwrite ($aUWT).
Amulet offer simple, reliable cover for everyone in Web3 solution. TPS-high, Fee-low & Protection-high.
Amulet offer simple, reliable cover for everyone in Web3 solution. TPS-high, Fee-low & Protection-high.
Amulet Protocol
Within the Solana ecosystem, users own $SOL derivative tokens such as $mSOL owned by Marinade.finance and $stSOL owned by Lido.finance. These tokens are important innovations in DeFi as users do not only participate in paid platforms but issue tokens on other platforms throughout the ecosystem.
Amulet has intentionally focused its contribution on this high capital intensive cycle and created an insurance layer on top of the foundation ecosystem — the $SOL token and the Solana PoS cluster. For this platform, $amtSOL will be issued when the user injects their $SOL tokens.
Amulet Managing Token ($AMT).
Allows users to suggest and vote on community proposals. These include, but are not limited to, future reward satisfaction, security validity, target capital requirements, listing of new products, treasury redemption thresholds, and changes to expected outcomes.
The $amtSOL is a revenue-generating token similar to $mSOL, which is accrued on the revenue generated by the Solana PoS rate. Users will also have the option of investing $amtSOL in insurance pools to underwrite insurance products, receive premiums and rewards in $AMT, or invest $amtSOL in a betting pool for rewards in $AMT on the Amulet platform. They can also use $amtSOL to participate in other protocols in the Solana ecosystem to earn additional revenue. With the creation of $amtSOL, Amulet will become part of the Solana ecosystem.
Insurance Token ($aUWT).
As an open DeFi insurance protocol, Amulet also supports other $SOL derivative tokens such as $mSOL, $stSOL, etc. to participate in underwriting.When these $amtSOL, $mSOL, $stSOL are used for insurance underwriting, $aUWT tokens are minted to de-nationalize the token underwriting capabilities.
Derivative SOL tokens are exchanged for $aUWT tokens using the weighted average exchange volume algorithm.
On a DEX (e.g. Saber or Raydium) for that trading pair, including $amtSOL-$SOL, $amtSOL-$mSOL, $amtSOL-$stSOL, $amtSOL-$aUWT, $mSOL-$aUWT, and $stSOL-$aUWT. Users can change their original tokens from the protocols or redeem their important Amulet.
Within the Solana ecosystem, users own $SOL derivative tokens such as $mSOL owned by Marinade.finance and $stSOL owned by Lido.finance. These tokens are important innovations in DeFi as users do not only participate in paid platforms but issue tokens on other platforms throughout the ecosystem.
Amulet has intentionally focused its contribution on this high capital intensive cycle and created an insurance layer on top of the foundation ecosystem — the $SOL token and the Solana PoS cluster. For this platform, $amtSOL will be issued when the user injects their $SOL tokens.
Amulet Managing Token ($AMT).
Allows users to suggest and vote on community proposals. These include, but are not limited to, future reward satisfaction, security validity, target capital requirements, listing of new products, treasury redemption thresholds, and changes to expected outcomes.
The $amtSOL is a revenue-generating token similar to $mSOL, which is accrued on the revenue generated by the Solana PoS rate. Users will also have the option of investing $amtSOL in insurance pools to underwrite insurance products, receive premiums and rewards in $AMT, or invest $amtSOL in a betting pool for rewards in $AMT on the Amulet platform. They can also use $amtSOL to participate in other protocols in the Solana ecosystem to earn additional revenue. With the creation of $amtSOL, Amulet will become part of the Solana ecosystem.
Insurance Token ($aUWT).
As an open DeFi insurance protocol, Amulet also supports other $SOL derivative tokens such as $mSOL, $stSOL, etc. to participate in underwriting.When these $amtSOL, $mSOL, $stSOL are used for insurance underwriting, $aUWT tokens are minted to de-nationalize the token underwriting capabilities.
Derivative SOL tokens are exchanged for $aUWT tokens using the weighted average exchange volume algorithm.
On a DEX (e.g. Saber or Raydium) for that trading pair, including $amtSOL-$SOL, $amtSOL-$mSOL, $amtSOL-$stSOL, $amtSOL-$aUWT, $mSOL-$aUWT, and $stSOL-$aUWT. Users can change their original tokens from the protocols or redeem their important Amulet.
Amulet
Amulet will adopt a cross-chain strategy and deploy it to other ecosystems not based on the Ethereum virtual machine along the way.
But most importantly, Amulet gives users the opportunity to help protect the blockchain by participating in liquid betting and insurance, which will again be done through a single protocol. Thus, Amulet will be designed with transparency in mind, with a focus on developing the project in collaboration with the security community.
If you know English well, you can carefully read the infographic below, which schematically explains the structure of the protocol process.
Positively, we can distinguish 3 main areas of the protocol, these are:
Insurance — the ability to protect the value of your assets with: smart contract insurance, stable coin depeg insurance and NFT insurance.
Steering — the ability to put your assets in Amulet with peace of mind. Amulet is the only insurance protocol that includes 3 levels of protection between claims and your assets.
Earnings — Hybrid claim management: automatic payouts when you depeg stable coins and claim management when you confirm DAO.
Amulet will adopt a cross-chain strategy and deploy it to other ecosystems not based on the Ethereum virtual machine along the way.
But most importantly, Amulet gives users the opportunity to help protect the blockchain by participating in liquid betting and insurance, which will again be done through a single protocol. Thus, Amulet will be designed with transparency in mind, with a focus on developing the project in collaboration with the security community.
If you know English well, you can carefully read the infographic below, which schematically explains the structure of the protocol process.
Positively, we can distinguish 3 main areas of the protocol, these are:
Insurance — the ability to protect the value of your assets with: smart contract insurance, stable coin depeg insurance and NFT insurance.
Steering — the ability to put your assets in Amulet with peace of mind. Amulet is the only insurance protocol that includes 3 levels of protection between claims and your assets.
Earnings — Hybrid claim management: automatic payouts when you depeg stable coins and claim management when you confirm DAO.
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