KuCoin AMA With Amulet (AMU) — Leading the Way: The First Yield Protocol Designed with Protection

Dear KuCoin Users,

Time: January 31, 2024, 12:00 PM-1:24 PM (UTC)

KuCoin hosted an AMA (Ask-Me-Anything) session with the Community Lead of Amulet, Garnet Leon, in the KuCoin Exchange Group.

Official Website: https://amulet.org/

Whitepaper: https://docs.amulet.org/amulet-v2/resources/amulet-v2-litepaper

Follow Amulet on Twitter, Telegram and Discord

Q: Could you please give us an overview of the Amulet Protocol?

Garnet: Amulet started as the FIRST and ONLY DeFi insurance protocol in Solana, we upgraded our product to a new level, the Amulet V2, Amulet V2 is the first yield protocol with built-in protection for Web3 users to Earn Safely. We offer a whole new experience, combining yield and shield in one user-friendly Web3 platform.

Here is why we stand out:

- Backed by top-tier VC firms like gumi Crypto Capital, Animoca Brands, NGC Ventures, and Solana Eco Fund.

- Enhanced yield strategies

- Transparent and comprehensive analysis of the risks in the yield.

- Built-in and streamlined coverage for digital assets protection.

Q: What are the product offerings of Amulet Protocol?

Garnet: The Amulet features three main components:

AmuVaults

- These are carefully chosen yield opportunities with embedded protection.

- Users also benefit from detailed strategy analyses and risk evaluations for each vault.

AmuShield

- AmuShield includes the Amulet Safety Fund, supported by $10 million AMU tokens, for asset protection.

- It employs parametric risk management to monitor assets in real-time, detecting security incidents through LP token price comparisons with predefined triggers.

- In the event of a security incident, AmuShield facilitates rapid response, assisting users in promptly retrieving their assets.

AmuVerse (Loyalty Program)

- Users can earn crystals through various incentive channels within AmuVerse. These crystals qualify for $AMU token airdrops during TGE.

Q: Can you share more about your recent achievements and your roadmap for the year 2024?

Garnet: We achieved several milestones

- We kicked off the Beta Version of Amulet V2.

- The initial design and development of the product were successful, earning recognition from many DeFi savvy users.

- We initiated the mining of $AMU tokens.

- We launched our new loyalty program, AmuVerse.

- We completed our security audit report for Amulet V2 by BlockSec.

- We launched $AMU on KuCoin and other 3 top crypto exchanges.

The major upcoming milestones in our roadmap include

- Achieving the formal launch of Amulet V2 in Q1 2024.

- Expanding to more yield strategies and additional networks like Arbitrum and other mainstream L2s.

- Placing more focus on partnership development and community building.

Q: Can you please introduce and explain to us your tokenomics and token utilities?

Garnet:

Tokenomics

- 1 billion $AMU tokens in total.

- 25% for business & community incentives, the rest for fundraising, liquidity, and team.

Token Utilities

Governance via veAMU:

- Stake $AMU for veAMU, proportional to stake amount and duration.

- Vote with veAMU on product updates, feature changes, and profit sharing.

Incentives:

- Earn $AMU through staking and enhance rewards allocation through veAMU.

- Participate in governance for additional rewards.

- Profit-sharing plans align user benefits with protocol growth like Lucky Draw.

Q: Are there any exciting partnerships or collaborations in the pipeline for Amulet?

Garnet:

· Backing by Top-tier VC Firms: Amulet is backed by prominent venture capital firms like Gumi Crypto Capital, Animoca Brands, NGC Ventures, and the Solana Eco Fund. These investors provide not only financial support but also strategic business consultancy and collaboration resources.

· Partnerships in the Ecosystem: Amulet has established partnerships across different categories, such as infrastructure integration and digital assets coverage products. Key partners include major yield protocols in the Solana ecosystem (e.g., Jito and Marinade) and crypto asset custody and protocol auditors like Cobo and FYEO.

· Collaborations with Blockchain Associations: Amulet actively engages with various blockchain technology associations for the exchange of technology and talent recruitment, furthering its growth and development in the Web3 space.

Q: What are Amulet’s strategies for sustaining long-term collaborations in a competitive environment?

Garnet:

Amulet V2 is a yield-focused protocol that incorporates built-in protections, prioritizing yield generation while subsequently emphasizing solid risk management.

So our goal is to integrate a variety of exceptional and trustworthy yield strategies, positioning us not as competitors but as potential collaborators with other yield protocols.

Nevertheless, we do possess certain unique advantages over them, as illustrated in the chart below.

Q: Could you please introduce the Amulet team members?

Garnet: Our team consists of experienced professionals from finance, technology, and marketing, uniquely skilled in both traditional and blockchain sectors. This expertise drives our mission to provide secure, profitable DeFi solutions.

Our tech team is experienced and with robust smart contract developing knowledge and sufficient security expertise, we have team members from IBM, and Microsoft, and also advisors from WTW which is a decent traditional insurance institution.

We have a strong BD & Marketing team, and most of them are experienced since they are veterans of Web3, for example, we have our BD team which is from the top crypto exchanges.

Q: “17-point risk inspection checklist” that is mentioned on the Medium article which is awesome. Could you elaborate how risk perception has changed with Amulet V2?

Garnet: Our risk profile is developed based on our many years of industry experience and insights from developing DeFi insurance products. It includes a comprehensive analysis of various types of risks, including Security Risk, Market Risk, and Operational Risk, providing users with a thorough and transparent analysis.

In these analyses, we have carefully selected risks that can be objectively analyzed with data support, without any subjective intentions influencing these facts. This ensures that the risk analyses we provide to users are completely fair, just, and transparent. This approach is a result of our years of experience in the DeFi security industry and incorporates feedback from numerous savvy users.

Q: What are the primary use cases for the AMU token within the Amulet platform, and how does it contribute to the overall functionality and utility of the ecosystem?

Garnet: Here are the primary utilities of AMU token:

- Stake $AMU for veAMU, proportional to stake amount and duration.

- Vote with veAMU on product updates, feature changes, and profit sharing.

- veAMU can help users to boost their yield also.

Q: For the AmuShield monitoring system, how do you use parametric risk management to detect security incidents in real time? What methods do you use to minimize false positives and negatives?

Garnet: AmuShield employs a sophisticated parametric risk management approach to monitor and protect assets in real-time. This system operates 24/7 and is crucial for the early detection and response to potential security threats within the decentralized finance (DeFi) landscape. Here are the key features of AmuShield's risk management strategy.

Continuous Monitoring of LP Token Prices: AmuShield continuously monitors the LP token prices, referred to as the "Current Price", which is measured as the amount of withdrawable assets per underlying LP token of a strategy​​. This real-time tracking is essential for maintaining transparent and precise accounting and for constant vigilance on deposited assets.

Tracking Operational Risks: AmuShield is adept at spotting risky activities, such as unusual withdrawals from protocols. This helps in identifying and addressing operational risks effectively​​.

Parametric Trigger Mechanism: If LP token prices fall below a certain safe threshold, it signals a compromise in the protocol's integrity. This triggers AmuShield's compensation plan, initiating a prompt and transparent claim process​​.

Q: How does Amulet approach risk management and mitigation within its yield aggregation strategies, and what measures are in place to address potential vulnerabilities and market fluctuations?

Garnet: Amulet employs a comprehensive approach to risk management and mitigation within its yield aggregation strategies. The key measures in place to address potential vulnerabilities and market fluctuations includes:

Built-In Protection through AmuShield: Amulet's strategies generate yield from market opportunities while safeguarding deposited assets with built-in protection through AmuShield. This ensures that while users are engaged in yield-generating activities, their assets are simultaneously protected​​.

Optimized Vault Management: Amulet's vaults automatically execute strategies to maximize yields on deposited assets. These strategies are designed to navigate the dynamic and complex Web3 markets effectively. Amulet's vaults are unique in bringing robust cybersecurity and financial protection directly to users' Web3 investments​​.

Comprehensive Risk Inspection: Amulet offers detailed and practical examinations of each strategy, addressing common market, security, and operational risks. This proactive risk management approach involves transparent and detailed reports, enabling users to make informed decisions and promptly address any issues. This commitment to reliability is aimed at maintaining financial security and resilience of the strategies in the evolving Web3 landscape​​.

Q: How did the idea of combining investment and insurance come about? How long has Amulet been working on this idea?

Garnet: In recent years, the Web3 space has seen a significant rise in security incidents, with over 167 major attacks in 2022 leading to $3.6 billion in losses and this trend continued in 2023, with losses exceeding $1.359 billion by October. Despite these risks, users often chase high-yield opportunities, largely due to attractive rewards and a lack of effective risk management strategies.

Recognizing these challenges and after extensive discussions with crypto industry experts, Amulet V2 was developed to address these user pain points. It aims to balance enhanced yield opportunities with comprehensive risk management strategies. Amulet V2's focus is on providing transparent risk profiles, built-in coverage, adaptable risk models, and streamlined claims processes, catering to the evolving needs of Web3 users and investors.

🎁 Participate in the Amulet AMA quiz now for a chance to win $10 in AMU!

The form will remain open for five days from publishing this AMA recap.

KuCoin and Amulet have prepared a total of $2,000 in AMU to give away to AMA participants.

1. Pre-AMA activity: $800 in AMU

2. Free-ask section: $50 in AMU

3. Flash mini-game: $400 in AMU

4. Post-AMA quiz: $750 in AMU

Sign up for a KuCoin account if you haven’t done so yet, and ensure you complete your KYC verification to be eligible for the rewards.

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