Since the summer of 2020, DeFi has grown from $9.7 billion TVL (Total Value Locked) to $230 billion. Due to this burgeoning market, we’ve seen a huge increase in demand for risk hedging, and crypto users often suffer from smart contract vulnerabilities, scams, and NFT hacks. In 2021, approximately $3 billion was lost due to hacks and exploits. Yet, just 2% of DeFi is currently covered by a cover option. So – what’s the solution? That’s where Amulet comes in, as we explain in detail below.
Introducing Amulet
Amulet is a DeFi cover protocol for the Rust-based ecosystem with initial deployment on Solana. Our goal is to nurture a safer Web3 for everyone by providing enhanced digital asset protection that is industry-leading. DeFi – decentralized finance – is an emerging financial technology that has enjoyed incredible growth since 2020. As the market expands, the demand for risk management and digital asset protection cover increases. Therefore, we are building Amulet to meet the growing need for cover options on Solana and the Rust-based space more generally.
Why is DeFi Cover necessary?
DeFi cover provides a financial safety net for people who trade and manage Web3 financial products. In other words, DeFi cover is necessary for the same reason that Crypto protection and conventional cover are required – to protect your assets and investments. In 2021 alone, approximately $3 billion was lost due to smart contract exploits, which DeFi protection covers, alongside slashing, oracle failures, and economic exploits. Securing such risks is a crucial step towards fostering a safer Web3 for everyone, which is the overarching goal of Amulet.
What makes Amulet unique?
Claims and risk underwriting are fundamental to any business. Amulet has pioneered the first Protocol-Controlled Underwriting Value (PCUV) approach in the DeFi industry, which enables clients to cover DeFi and other financial products. Our approach deviates from the typical risk protection models and is a much more sustainable method, ensuring we fully grasp the unique needs of the industry while offering exceptional protection to customers and businesses. Our PCUV approach ensures our underwriting capabilities are controlled by the protocol, meaning it is more sustainable and scalable than traditional models.
What risks will Amulet cover?
Our digital asset covering will be comprehensive, spanning from smart contract vulnerability to NFTs. We will protect clients from smart contract vulnerabilities, which is one of the biggest risks within the DeFi space. We will also offer Stablecoin De-Peg, which mitigates the risk of a stablecoin trading below its peg for a sustained period of time. Amulet will also provide protection against slashing, as well as risk management of NFTs, Metaverse, and wallet cover.
Ultimately, Amulet aims to provide simple and reliable coverage for anyone operating in Web3. Follow us on Twitter to find out more about how Amulet can protect your DeFi interests.