Introducing Amulet – the first decentralized risk protection protocol for Rust-based ecosystems. The project will run initially on the Solana blockchain and provide a cover solution for everyone in Web3.
We wanted to provide an overview of what the Amulet protocol entails and what to expect in the near future.
TL/DR
- Amulet is a DeFi risk protection protocol, the first one on Solana
- With the planned multi-token ecosystem, users can secure the blockchain in multiple ways via one protocol
- Protects stakers while ensuring payouts using our unique Protocol Controlled Reserve (PCR).
- Provides Smart Contract risk cover and Stablecoin de-peg cover; soon to offer NFT, Metaverse and GameFi asset cover.
- Multi-chain strategy and expansion focused on the Rust ecosystem.
What is the solution?
The Amulet Protocol addresses the market demand for a risk protection protocol native to Solana and the broader Rust ecosystem. Amulet will use its deep learnings from DeFi cover providers to offer the simplest solution possible.
At its core, Amulet has developed a solution to address the clash between underwriting capital stakers and cover buyers. The core design of Amulet is the Protocol Controlled Reserves (PCR), which is a paradigm shift for DeFi cover toward a scalable and sustainable future (more on this later).
Most importantly, Amulet allows users to help secure the blockchain through liquid staking and cover participation – in one protocol.
Amulet will be built with transparency and focused on the development of the project alongside the security community.
What is PCR? (Protocol Controlled Reserve)
Currently, risk protection protocols rent underwriting capacity from stakers via token emissions. This has long-term sustainability issues, creating liquidity locusts and flight of capital from the platform. PCR is a shift toward a more scalable and sustainable future.
PCR brings together a Yields Backed Claims Pool, a treasury and other reserve layers to reduce loss to staked capital. In other words, the protocol is developing and managing risk on either side of the two-sided cover marketplace (for users and stakers) by owning underwriting buffers.
Thus enabling the Cover Flywheel to take effect – a larger asset base that generates more platform revenue, which is accrued to users, which invites more capital – all whilst balancing the needs of platform users in a sustainable manner.
What are the Cover Offerings
Similar like other existing decentralised risk protection protocol, Amulet will offer coverage on smart contract risk, stable-coin de-peg risk, slashing risk and etc as a start. The metaverse is the current frontier. Amulet will be uniquely positioned to be a core building block and foundation in this world of infinite potential and possibilities. Amulet has plans to build the following metaverse related cover products:
- GameFi asset cover
- NFT asset cover
- Cyber Security cover
- Metaverse Life cover
- Virtual property cover
With all these developments, Amulet will have the most comprehensive cover offering, and the 1st one with a focus on supporting the future of metaverse.
How do I learn more?
The best way to follow Amulet is by joining our Discord and following our Twitter to get updates not only on our product design and development, but also further detail on our roadmap.
Meanwhile, here is our litepaper for your perusal:
https://files.amulet.org/public/AmuletLitepaper.pdf
The core team will be present and all announcements will be released to our community first!
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