Unveiling Amulet: Powering the Next Wave of DeFi on Cosmos Hub
A Trailblazing Approach to Unleash the Value of Staked Assets in Cosmos
The world of decentralized finance (DeFi) is witnessing a remarkable evolution with the emergence of Amulet Finance, a non-custodial lending protocol destined for the Cosmos ecosystem. Positioned to revolutionize the DeFi landscape, Amulet (not to be confused with the Amulet.org insurance protocol built on Solana) is set to unleash a new wave of possibilities for asset holders, particularly those invested in Proof of Stake (POS) assets.
Cosmos DeFi Unlocked
Amulet addresses a critical issue prevalent in the Cosmos ecosystem: the limited accessibility to DeFi despite its prominence as one of the largest blockchain ecosystems. While Cosmos boasts immense potential for interoperability, the DeFi Total Value Locked (TVL) on the platform remains only a fraction of the broader crypto market. The primary hurdles hindering the unlocking of capital are the restrictions posed by staking assets and the risks associated with leveraging in the volatile crypto market.
Enter Amulet, offering a game-changing solution that enables users to stake their assets and obtain advances on their future staking rewards in the form of amAssets. This innovative approach allows users to maintain control over their native assets while utilizing them as collateral for self-repaying loans, avoiding the need to convert assets into derivatives—a process that often leads to certain advantages but equally significant disadvantages.
Empowering Cosmos DeFi Dynamics
The core principle of Amulet lies in granting users the flexibility to stake their POS assets while simultaneously unlocking their value through self-repaying loans. This not only addresses the limitations imposed by staking but also bolsters liquidity for the assets on the platform, thereby fueling the DeFi ecosystem on Cosmos.
The protocol’s design ensures that users are shielded from the threat of liquidation on their advanced loans. The loans are denominated in amAssets, treated on a 1:1 ratio with the native assets by the protocol, safeguarding the users’ principal assets and securing rewards. With a calculated approach, Amulet promises an advantageous solution where an Advance loan of 50% Loan-to-Value (LTV) on ATOM, in an environment with 20% inflation, could be entirely repaid within 2.5 years.
Moreover, Amulet’s functionality extends beyond staked assets, offering self-repaying advances on tokens deployed in other yield-bearing strategies, such as liquidity pool (LP) farming strategies. This inclusive approach ensures that users have the opportunity to engage in DeFi activities without compromising their principal assets or forgoing potential rewards.
One of the standout features of Amulet is its dedication to non-custodial principles. Users maintain absolute control over their assets, assuring a secure and trustless environment within the protocol. This commitment to safeguarding user assets distinguishes Amulet in a landscape often marred by centralized risks.
DeFi Landscape Evolution
For Ethereum enthusiasts exploring the potential of Amulet, the protocol is gearing up to include strategies for wrapped stETH on Neutron. This move is expected to usher in a surge of ETH-based liquidity into the Cosmos ecosystem, widening the scope for DeFi applications and further enriching the cross-chain dynamics.
Scheduled for launch in 2023 on Neutron, with support from the ATOM Accelerator DAO and the Interchain Builders Program, Amulet is poised to redefine the DeFi paradigm on Cosmos. The protocol not only aims to invigorate liquidity for native assets but also to enhance the appeal and utility of ATOM, consequently fortifying the security and capital efficiency of the Cosmos network.
By offering avenues for users to stake assets and leverage their value without compromise, Amulet is not only unlocking the potential within the Cosmos ecosystem but also contributing to the broader evolution of DeFi, setting a precedent for innovative and user-centric financial protocols.
In conclusion, Amulet stands as a beacon of change in the DeFi landscape, heralding a future where staked assets are no longer dormant but rather vibrant components of a thriving DeFi ecosystem. As the protocol gears up for its launch, the anticipation and enthusiasm surrounding its potential to redefine DeFi on Cosmos are palpable, promising a new era of financial opportunities for users of all scales.
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