Amulet Protocol proud to announce that we're working with cer_live to analyse security ratings🔒

CER is a cybersecurity platform that Amulet is utilising to understand the security of DeFi protocols during our risk assessment process! 💻

Given the recent increase in crypto-related crimes, DeFi cover is a worthy investment. Amulet has developed the first Protocol-Controlled Reserves (PCR) approach in the whole risk protection industry, which offers protection from smart contract vulnerability and soon stablecoin depeg, and slashing. Amulet is also looking and assessing the fundamentals for a Wallet Cover. So, if you have invested in crypto, now is the time to protect it against would-be thieves and hackers.

https://amulet.org/blog/crypto-wallets-how-secure-are-they/

Amulet Protocol had an exceptional 2022. Amulet Protocol announced project in April at DevConnect in Amsterdam and this was shortly followed by seed funding announcement.

Since then Amulet Protocol been building community and getting ready for launch. Amulet Protocol did this organically and grew steadily and this became more extreme when we started our AmuNation app. Amulet Protocol achieved top 5 most engaged Solana projects in only 3 months of existence!

The AmuNation app is a bounty campaign that is still ongoing and will provide users with valuable rewards.
You can all join in: amunation.amulet.org (http://amunation.amulet.org/).
You have to complete tasks and there are also daily spins.
Amulet have plenty of community events too (3 already this week!) and you can win points and SOL on them too! Amulet  then had our audit results, successful TestNet and our MainNet has been live for 3 weeks TODAY! Amulet Protocol sold over 400 covers already and so it’s never been more important to earn those underwriting rewards! This time next year, Amulet  plan on being the BIGGEST multi-chain cover protocol in web3 (not just Solana).

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.

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.

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.

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 .