Preface
In the field of investment, there is a generally recognized principle:"Return is proportional to risk". This is particularly evident in the dynamic and ever-changing Web3 industry. Although hacking incidents still occur frequently and have widespread impacts, successfully avoiding or controlling risks remains a challenge for many users.
As the cryptocurrency market recovers and the activity of assets on the chain increases, the frequency of hacking incidents has also increased significantly. For example, Orbit Chain suffered an attack loss of more than 80 million U.S. dollars, and KyberSwap was stolen for more than 48 million U.S. dollars. These events underscore the importance of balancing returns and asset security.
In this context, it has become an urgent need for users to find a method that can not only obtain profits but also effectively avoid risks, and Amulet V2 came into being.
Introduction to Amulet
Amulet (Amulet Protocol) is a DeFi insurance protocol in the Solana ecosystem. It was launched in the first quarter of 2022. Its early goal is to provide users with simple and reliable insurance services. In the second quarter of 2022, Amulet completed a seed round of approximately US$6 million, led by Gumi Crypto. Other investors include Solana Ventures, Animoca Brands, NGC Ventures, Longhash Ventures, Mirana Ventures, Defiance Capital and SevenX funds.
The development of Amulet V1 coincides with the prosperous development period of the Solana ecosystem. After the FTX and Solana ecosystems encountered twists and turns, Amulet experienced a period of stable development. During this period, the Amulet team recently upgraded and released an integrated investment and insurance income platform based on its understanding of the actual needs of DeFi insurance users and analysis of the core pain points of the Web3 industry.
Amulet said that Amulet V2, as an upgraded product, combines income strategies and embedded insurance to provide a user-centered one-stop income platform. The platform provides users with asset protection through transparent risk assessment and comprehensive risk management. At the same time, the deployment of Amulet V2 has covered multiple ecosystems such as Solana, Ethereum and mainstream L2.
At the same time, the Amulet token $AMU will be launched simultaneously on four major exchanges: KuCoin, Gate.io, Bitget and HTX at 5 pm on January 23, 2024.
The clever combination of income and insurance
Amulet Vaults and AmuShield, as the core functions of Amulet V2, provide users with both revenue opportunities and security.
Amulet Vaults
Amulet Vaults provides users with selected income opportunities through its comprehensive analysis, and helps users make more informed investment decisions in the complex and ever-changing Web3 market through comprehensive strategic analysis and transparent risk assessment.
Amulet V2 uses the ERC-4626 tokenized vault standard to achieve seamless integration with many Web3 revenue platforms. Users can deposit their assets into Amulet Vaults to generate income through predetermined income strategies managed by smart contracts, such as PoS staking, liquidity staking, leveraged mining, etc. The revenue generated comes in many forms, including staking revenue as well as additional AMU tokens, and the revenue generated will also be automatically reinvested by the platform for compounding returns.
At the same time, in order to maximize user benefits, Amulet V2 introduces a governance incentive mechanism. After optimizing basic returns and providing AMULET token rewards, users can increase annualized returns again through governance incentives.
Compared with other income platforms, Amulet V2 is unique in that it provides a comprehensive, transparent and completely objective risk analysis for each income strategy, mainly covering security risks, market risks and operational risk inspections, aiming to provide users with Empower stronger decision-making capabilities in investment activities and reasonably balance returns and risks.
AmuShield
AmuShield utilizes 24/7 asset monitoring, emergency response mechanisms and innovative parametric insurance services to protect user assets and effectively respond to various unexpected situations.
24/7 real-time monitoring and emergency response
AmuShield supports real-time monitoring of LP token prices, that is, the amount of withdrawable assets underlying each strategy’s LP tokens. Once AmuShield monitors that the price of LP tokens in the underlying fund pool of the income strategy is lower than the preset normal level, it will activate the emergency asset retrieval mechanism and perform asset withdrawal.
Parametric embedded insurance
AmuShield has established a special fund Amulet Safety Fund to provide users with solid and reliable asset protection. In the early stages of Amulet V2, Amulet Safety Fund ("ASF") includes $10M AMU tokens and protection fees collected from the income generated by Amulets strategies. At the same time, Amulet plans to introduce more security partners in the later period to expand the scale of the security fund and provide users with broader protection. It is important to note that the ASF only provides limited and dynamic asset protection against actual losses, meaning that the asset protection provided by the ASF is dependent on its current available funds.
When AmuShield detects that the price of LP tokens has fallen below the preset normal range, the insurance mechanism will automatically operate to provide users with quick asset compensation. This asset compensation can be received directly through the Amulet V2 platform, eliminating the need for cumbersome claim declarations. The process greatly improves the efficiency of compensation.
Tokenomics
In terms of token economics, $AMU, as the governance token of the Amulet protocol, gives community members decision-making rights in product development and ensures the transparency and sustainable development of the platform.
The initial total supply of $AMU tokens is set at one billion (1,000,000,000) coins. Among them, 25% of the token supply will be used for project and community incentives, and the remainder will be used for fundraising, liquidity launch, and team incentives.
Token governance
$AMU token governance will adopt the veAMU token model.
Users can obtain veAMU by staking $AMU, and the amount of veAMU is proportional to the amount and period of the pledge.
Users can use veAMU to vote on product upgrades, feature adjustments, revenue distribution, and other matters.
Users can use veAMU to participate in project income distribution decisions, which will ensure that the interests of token holders are closely integrated with the long-term development of the protocol.
Token incentives
The $AMU token gives long-term loyal users of the platform and token holders additional reward channels, which not only provides power for the incentive mechanism of the Amulet project, but also provides stronger stability for the efficacy of the $AMU token and the development of the protocol.
Mining rewards: Users can directly obtain $AMU token mining rewards through staking, and use veAMU to further increase the $AMU token reward distribution.
Governance rewards: Users who actively participate in protocol governance can receive additional token rewards. Governance rewards can effectively increase participation in protocol governance and provide feedback for users’ contributions.
Revenue sharing: Amulet plans to launch more direct revenue sharing plans, allowing users to directly benefit from the development of the protocol by sharing platform revenue, and encouraging users to use reward tokens to participate in protocol governance.
Future plan
The Amulet team stated that it plans to further expand its product functions and market coverage in 2024, including key links such as security audits, official launch, token issuance, and community expansion. It also plans to promote the platform to more blockchain ecosystems. And launch more self-developed income strategies and insurance services.
Amulet is a service platform that integrates income and embedded insurance, and is committed to creating a high-yield, safe, transparent and financially guaranteed Web3 income platform.
