We are hearing more and more about #web3, the third-generation Internet concept, and the transition from web2 to web3 seems inevitable. Being in the era of web2, where our data is stored on centralized platforms, we cannot feel safe, unlike web3, where we can find decentralization and privacy.
Decentralized databases for us provide blockchain with its cryptocurrency and technology. The harsh reality is that the web3 ecosystem is now an unstable and risky environment for all of us.
Accordingly, for web3 to continue to evolve, players who can provide us with protection and insurance must come to the forefront. This will allow us to master web3 painlessly, give new impetus to #Defi and lead to an environment where our data is safe.
My attention was caught by the Amulet Protocol project with its new approach to risk protection for web3. Amulet Protocol is a decentralized Rust-based insurance protocol, starting with but not limited to the Solana #blockchain. The project creates the risk protection industry’s first approach by solving the problem of resilience in risk underwriting and claiming. By changing the approach to a model that used underwriters’ capital to pay claims, Amulet has decided to build on protocol-controlled reserves (“PCR”), which will build reserves and implement a claims structure that includes a unique Yield Backed Claim (“YBC”) method
The amulet provides a combination of two elements to solve existing problems in risk coverage:
Underwriting Mining: Underwriting capital provided by underwriters.
Protocol Controlled Reserves: Reserves to protect underwriters’ capital.
So the project solves the uncertain risk of claim payments. Initially the assets placed in the underwriting mining pool will be used in a conservative way. And in the future, as the protocol generates more and more capital through coverage payments, return on investment, etc., and PCR builds up, the use of underwriter capital will be minimized.
There is a tranche built into the claims payment structure, it is secured by future income and is called the Yield Backed Claim (“YBC”) I wrote about above. I would like to note that in addition to insuring the protocols and risks of individual users, PCR will be used for income-producing investments for AMT holders and $SOL stackers. Eventually #TVL will increase steadily with minimal loss of capital.
As we see it, the project provides a new model for protecting its users and this model has the potential to scale sustainably.
Amulet already provides risk coverage: Smart contract vulnerability exploits, Stablecoin de-pegs, Slashing Risk coverage on NFT, Metaverse and Wallets is also in development. A feature to cancel coverage will appear in the app in the near future.
In addition to risk protection, the project offers other products and services:
Staking:
Users can use aUWT token to provide liquidity to the underwriting pool with a fairly high APY of 20%. Users can also make POS #Staking on Solana, for which they will also be rewarded.
Another product where you can make money is Liquidity Mining. Users can supply liquidity to earn transaction fees from these pools.
Amulet continues to actively develop and is constantly working behind the scenes on new products and technology. Here are some of them:
Ongoing MainNet development — app.amulet.org
Ongoing development on Personal Dashboard with public release pending final stages
Ongoing website development
Ongoing SEO development
Ongoing discussions with the Solana team
Ongoing discussions with investors Ongoing discussions with security partners
Ongoing AmuNation app work — major upgrade expected this week!
Ongoing Ambassador Program work Ongoing NFT development
Ongoing Tokenomics background work
Ongoing dialogue with CER Live to list new protocols
Ongoing work for upcoming new product Audit work being undertaken for upcoming new product
Audit work being undertaken for upcoming new product
As you can see AmuletProtocol provides an innovative tool for protection in web3 and is constantly being improved. By having simple and reliable insurance, our risks can be minimized. And as the Defi market develops, the demand for insurance and risk hedging will grow. That’s why I think Amulet Protocol and their product will have a bright future and our assets will remain protected.
An important factor in the development of Amulet is the community, which actively supports the project. Already launched the Ambassador program and just recently launched AmuNation v2 Bounty program with revards in the form of and $USDT. By completing simple tasks the participants get AmuPoints that reflect their place in the leaderboard and get the appropriate rewards.