Space Summary
The Twitter Space Neutron DeFi ft. Amulet Finance hosted by Neutron_org. Neutron DeFi and Amulet Finance dive into the realm of decentralized finance, focusing on revolutionizing user experiences and accessibility within the DeFi landscape. They emphasize the importance of cross-chain compatibility, user-centric design, and collaboration to enhance application development and drive adoption rates. Through the Integrated Application network, the aim is to simplify onboarding processes and bridge gaps between different blockchain ecosystems, ultimately creating a seamless user journey for broadening DeFi adoption and engagement.
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Space Statistics
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Questions
Q: How does the Integrated Application network benefit users?
A: It enables seamless onboarding from diverse blockchain networks, enhancing user accessibility.
Q: Why is cross-chain compatibility important for decentralized applications?
A: It expands the reach of applications, making them more versatile and user-friendly.
Q: What role does user-centric design play in DeFi application development?
A: User-centric design ensures a smooth user experience, driving adoption and engagement.
Q: How do Neutron DeFi and Amulet Finance aim to simplify user interactions with blockchain applications?
A: They focus on creating a seamless user journey for enhanced user integration.
Q: Why is collaboration essential in the DeFi space?
A: Collaboration fosters innovation, leading to improved applications and user experiences.
Q: What is the primary goal of the Integrated Application network by Neutron DeFi and Amulet Finance?
A: To bridge the gap between different blockchain ecosystems for seamless user interaction.
Q: How can simplifying the onboarding process drive DeFi adoption?
A: Easier onboarding attracts more users, increasing adoption rates and engagement.
Q: What are the advantages of building user-friendly applications in the DeFi landscape?
A: User-friendly applications enhance usability, attracting and retaining a broader user base.
Q: How does the approach of Neutron DeFi and Amulet Finance differ in revolutionizing the user experience?
A: They prioritize accessibility and integration, aiming to transform user interactions with DeFi applications.
Q: What is the significance of accessibility and integration in decentralized application development?
A: Accessibility and integration drive user engagement, making applications more user-centric and versatile.
Highlights
Time: 00:15:42
Seamless Onboarding Solutions Discussing the importance of seamless onboarding for users across various blockchain networks.
Time: 00:25:19
Cross-Chain Compatibility Benefits Exploring how cross-chain compatibility enhances the usability and reach of decentralized applications.
Time: 00:35:50
User-Centric Design Principles Highlighting the role of user-centric design in the success of DeFi applications.
Time: 00:45:27
Collaboration for Innovation Emphasizing the impact of collaboration on innovation within the DeFi space.
Time: 00:55:14
Integrated Application Network Overview Providing an overview of the Integrated Application network by Neutron DeFi and Amulet Finance.
Time: 01:05:38
Simplified User Interactions Detailing the strategies employed by Neutron DeFi and Amulet Finance to simplify user interactions with blockchain applications.
Time: 01:15:20
Revolutionizing User Experiences Exploring how Neutron DeFi and Amulet Finance aim to revolutionize user experiences in the DeFi landscape.
Time: 01:25:49
Accessibility and Integration Focus Discussing the significance of accessibility and integration in decentralized application development.
Time: 01:35:10
Integration Across Blockchain Ecosystems Delving into how the Integrated Application network bridges gaps between different blockchain ecosystems.
Time: 01:45:28
Driving DeFi Adoption Through Simplification Examining how simplifying the onboarding process can increase DeFi adoption rates and user engagement.
Key Takeaways
- Seamless onboarding from various blockchain networks is a key focus for Neutron DeFi and Amulet Finance.
- The Integrated Application network simplifies user accessibility across different chains.
- Neutron DeFi and Amulet Finance emphasize the importance of building user-friendly applications.
- Cross-chain compatibility enhances the reach and usability of decentralized applications.
- Simplifying the onboarding process can drive adoption and user engagement in the DeFi space.
- Neutron DeFi and Amulet Finance aim to revolutionize user experiences by fostering accessibility and integration.
- Collaboration and innovation in DeFi can pave the way for enhanced application development.
- User-centric design and ease of use play a vital role in the success of decentralized applications.
- Neutron DeFi and Amulet Finance prioritize creating a seamless user journey within the DeFi landscape.
- The Integrated Application network by Neutron DeFi and Amulet Finance aims to bridge the gap between different blockchain ecosystems.
Behind the Mic
Introduction and Initial Greetings
It. Hey, guys, how you doing? I'm gonna do a quick mic check. You're coming in loud and clear. How you doing? Good, good. Hey, everyone. Hey, Robin, how are you? Good, thanks. Good, good. Is it early or late where you guys are? Midday by me. I'm in the states right now. Nice. Same here. 03:00 p.m. my time. Where are you at, Robin? I'm in London, so I'm kind of in the middle, which is always quite useful when we've got team members in Asia and in the US or wherever. Yeah, London's beautiful as well. I mean, you've got some of the best cuisine in the world. Yeah, we are lucky like that. You can get anything. Yeah. Cool.
Discussion on Amulet Introduction
Well, why don't we kick things off? Maybe we could do a brief round of intros and then I'll let Joe take it away. He's going to be hosting the space today. I'll obviously jump in with questions as I have them as well, but yeah, thanks, everybody for coming. Thanks. For those who are listening back to this space and the recording, my name is Zion. I'm the CMO at the Neutron Foundation. Robin, do you want to give a brief intro of yourself and then maybe also of amulet? Yeah, sure. So I'm Robin. I'm the project lead and founder of Amulet finance shorthand Amulet. There's quite a few amulets around and some of them are not so popular in cosmos, so I always have to try and make sure everyone knows which amulet we're talking about.
Details About Amulet Finance
So, Amulet finance is essentially, it's a Defi protocol designed to enable users to mint a synthetic called an AM asset, and it mirrors the native token that's been deposited. So, starting off, we launched about a week ago after about two to three years of building, and we're live on neutron as a. As an integrated application. But I'm sure you're going to ask me a lot more about that. So. Yeah, that's a short intro. Cool. Joe, do you want to give an intro as well? Yeah, sure. Thanks for having me co-host this one. This is going to be fun. I haven't caught up with amulet in quite some time, but if you're hearing me for the first time, my name is Joe. I am a content creator focused on crypto user experience and consumer facing applications.
Background and Origin of Amulet
I'm a stream on YouTube, sometimes twitch, sometimes rumble, and sometimes on omniflix tv, which is cosmos native, kind of like a content hub over there. So. Yep, that's me. Nice. Well, cool. Maybe we could kick things off Robin, do you want to tell us a little bit about the origin story of amulet? How you guys ended up getting inspired to start that project and then maybe how you pulled the team together and launched your first product? Sure. So, I. I mean, just from a personal background, I've been working in a professional capacity outside in, like, everybody in real life originally, and came into crypto in about mid 2017. So went through the entire cycle of ico craziness and back again round trip, that one.
Journey through Crypto
And then I ended up working with other validators in secret network, which came across from ethereum as an ERC 20 that was previously enigma. And I was really interested in that because I was interested in smart contracts and privacy and all of that, and that's how I came into cosmos. But I could see that there was such cool stuff happening with Defi. I mean, way back when, before Aave was aave, it was lend, and there was another protocol called salt. And I remember someone saying to me back then, oh, it's so cool, you can borrow against your crypto. And I just thought, well, how does that work then? What happens when it crashes? 30%, which it often does.
Inspiration Behind Amulet
So I was kind of inspired to sort of find ways in which you could borrow more low risk. And so that's what kind of triggered the whole search for a solution. And I was actually looking for a solution and ended up kind of wanting to create the solution, so, yeah, and then I ended up meeting our lead, Dev, who's incredible dev, who's done a lot of work, again, outside crypto originally, and our teammates are generally just all people who, you know, we're small team, but I do kind of think that you want sort of 18 people, and it's better to have a few people who are amazing than to try and have lots of people. I've seen quite a lot of teams that are not at this level, but have a lot of people.
Funding and Challenges
Obviously, they're also amazing teams that are huge as well, but we have not had that kind of resource. We're largely self-funded, apart from some very much appreciated grants. So, yeah, we have focused on building it to the best of our ability. And now, finally, it's taken a few bumpy turns along the way. But finally, we're live on Neutron, and we're really excited now to just start spreading awareness and getting people understanding that the opportunity is there either to provide liquidity and basically be a huge stakeholder in the protocol for helping it drive its growth, or just to use amulet and hopefully unlock that liquidity for yourself.
Reflections on the Past
Amazing. Yeah, that's super cool. And it's funny you bring up Aave and lend. I remember those days because I was. My actual original foray into the crypto space was on trading. I was doing arbitrage strategies on ether delta, the first Dex on Ethereum back. In the day before Uniswap. Yeah, yeah. That was a very basic Dex, but it worked. It was so insane seeing the difference between that and when binance. You know, like when I started using binance for the first time and like, you know, the orders on ether delta would literally not move. Like the order books.
Comparison of Early DEXs
Oh, yeah. Would look like they were just static. And then you went to binance and there's so many flashing orders being filled and being added. It was like overwhelming to see the difference. But, yeah, I remember I actually bought lend the day it came out. Oh, wow. At like two cent or something like that. And like wrote it up for a while, but then ended up selling way too early, obviously, because that lender later ended up becoming Aave. But, but yeah, those are crazy days. And it was fun being. Involved in it because I still have, I think I literally still have about ten aave kicking around and then thinking, damn it.
Crypto Trading Stories
I think everyone in crypto has got a story like that where they're like, yeah, I got into this thing super early, but then didn't hang on to it as when I should have. Yeah, no, absolutely. But then there's plenty more that I've round trips that like seen go up and then go down again. So, you know, we've all been there, right? We've all gone. Yeah, exactly. Brings back memories, slightly different memories, but just as painful, I guess. I got, I got airdropped. I got airdropped XLM when it first forked from ripple. And they were like nine zeros in the price at that point.
Missed Opportunities
And I talked to my friend, I said, hey, what the hell is this? It just appeared. I was on a centralized exchange. And he goes, oh, that's nothing. Just sell it. It's called stellar lumens. And lumens is like, it's like inside joke that it's nothing lumen. So I sold it. And in the last bull market, you know, I was like forty cents, fifty cents. But they were like several zeros in the price after the decimal. So that was like multiple hundreds of x's that I left on the table because my friend, who knew more than me told me to sell it.
Trading and Investing Experiences
Oh, I have an even better one though, because I'm not a trader by background. I dabble in finance related matters, and as you can tell, obviously, but I actually hire experts to do the clever stuff. To some degree. I see myself as more having a vision of what the solution should be and then hopefully getting the people to help build it. But I was trying to travel in trading when I was in 2018, and I happened to just pick up a whole ton of this thing called Dot. And then at some point I left it on an exchange called cryptopia.
Experiences with Cryptopia
And you probably know the rest from there. I get emails from them. Like, I get emails from them like every week because they. I don't know if they were hacked or they got rated or what, but people's money. Yeah. So money got trapped.
Challenges with Recovering Funds
And at the time, I didn't have much money on there. They wanted me to go through like a several months long KYC process to recover my, like $25. So I just never did. And I get emailed all the time. All the time.
Inspiration Behind Amulet
It's funny. So anyway, I guess all these war stories are basically why I wanted to build amulet, really, because for everybody who's probably made millions in crypto, there's a lot more people who've been sunk and given up their gains. And what I want to do was enable users to hold their favorite assets so they don't have to sell them and regret selling them, but also be able to borrow against them without worrying about being liquidated so that they could do something else and hopefully do even better with whatever they did, or just sell them to go buy a motorbike or whatever they wanted to do.
Staking Assets in Cosmos
And that was inspired in part by Alchemyx, which is very cutting edge when it came out, but possibly slightly too esoteric for a lot of users. And so my ambition was really to identify the fact that when you're staking assets, particularly in cosmos, where staking is, the bonding rates are so high, and it's because the inflation is really pretty high, and so no one wants to be deflated away all the time, inflated away all the time. So there's not much incentive to kind of participate in defi.
Unlocking Future Value
So both from a macro picture and up close, it seemed to me like there was something missing, which was the ability to unlock your future value in your staking rewards upfront. And I know there are various people who have tried to solve this, and there are some very cool protocols where you can kind of split your token into two tokens, and one represents you. I know. I think fission is coming out on neutrons. So kudos to them and prism has already kind of done that.
Appealing to Token Holders
But I kind of wanted to appeal to someone who thought, I don't want to swap my token for a different token. I'm very happy with my token, but I want to be able to do something more with it than just stake it. This is actually a very hard market to crack, which is possibly why our TVL at the moment is quite low, because those are the very people who are not unbonded and not moved and not use the LSM, not swapped into an LST.
Emerging Trends in Staking
So as were building, I identified. Well, actually the team kind of identified. Look, there's a lot of people now starting to choose lsts in cosmos where there weren't before. We should enable lsts. So we came up with a strategy for lsts and there'll be a ton of other strategies as well in terms of like we're talking to Apollo about enabling their vaults on Amniot as well, but probably just getting back to basics.
Core Idea of Amulet
The kind of the core idea was I wanted to be able to stake an interchain asset from anywhere, really from somewhere, and then be able to mint against it for my future rewards and have them upfront now and then those would self repay over time as they trickled in. And it's actually kind of similar to invoice financing in business or slightly less reputably but much less expensive, the payday loans.
Borrowing Capital Now
You know, you want your wage now, you don't want to wait for it, take a huge cut on it. When a payday loan, that's not very nice, but with amulet it doesn't work like that because you're not taking a huge cut. It's very similar to an LST. You meant your loan. You get your money now, you can do what you want with it. You can either wait for it to pay itself off when the staking rewards come in, or you can repay early, obviously, if you want to.
Understanding the User Problem
And you have that freedom. And it's probably something which I'm not sure a lot of people have even necessarily realized is possible because they haven't thought of it. But that doesn't mean it's not a problem that people have. Because I think when you see that bonding rates in cosmos are like 60%, that's a ton of liquidity that's not moving through the system and kind of making the whole interchange come alive.
Liquidity Issues in the Interchain
And people can fud a lot about things going on in the interchain or wherever, whichever eco they're in. But usually it's not actually necessarily about politics because there are problematic politics everywhere. I think fundamentally it's about the fact that, yeah, it's too difficult to persuade people to move their tokens at the moment. Yeah, yeah, absolutely. Yeah.
Transition from Native Stake to Liquid Stake
And that's drop is drop protocol, which launched on neutron recently, has been working on enabling this liquid future where people are moving from native stake to liquid stake and they're basically just allowing the billions of dollars that are already in the ecosystem to flow productively throughout these economies. Right. And that's kind of. It sounds like what you guys are looking to do a similar thing with as well, right?
Implementing Liquid Staking
Definitely, definitely. So I mean, the difference with enabling an LST on amulet is that so for native staking, if you take atom, you stake atom through the amulet, smart contracts, it literally travels into the cosmos hub ic interchain account that's there and it's delegated onto validators there. As the rewards come in, they pay off users loans, travels effectively back, is accounted for in the smart contracts on neutron.
Tracking Redemption Rates
With the LST, it's actually way easier because all we have to do is track the redemption rate on the LST. So datum goes up against atom as it goes up in value. What we do is we treat it as effectively. When you deposited your d atom, say it was worth 1000 atom. At that point, you keep that value worth of atom in your wallet, but the extra gets kind of shaved off to pay off your loan.
Self-Repaying Loans
So you would get 500 am atom against your thousand atoms worth of datum and you go and do whatever with that. But your datum value will be essentially retained at your thousand atom worth paying off the loan as you go. So you've got your 500 upfront and it gets self repaid from the, I call it the rebases, but I know not everyone kind of knows quite what I mean by that. But effectively the rewards that are being brought into the value of diatom are being instead used to pay off the loan.
Explaining the Example
Someone was asking me to run an example of it today because they were trying to see like what it really meant to them. I said, well, you know, supposing you did have say, you know, 50 atom, that your hundred atoms say that you deposited all d atom and you've borrowed 50 atoms. Sorry, you would have to wait like two and a half years for that to arrive. Otherwise that's a lot of capital upfront that you can do something else with.
Using dAtom in Amulet
So, so when people are, so they're taking for instance, like d atom and they're then depositing that into amulet and then they're getting their d atom. Are they getting that back in the future? Yeah. So what it is that whatever your d atom is worth in atom now. So obviously d atom itself, like 1d atom doesn't stay static against atom in terms of its. Its value in atom.
Maintaining Value in the system
But you know, what we do is we with d atom, you will have, if you deposited a thousand atoms worth of d atom now, then when eventually you pull it out, you still have a thousand atoms worth of d atom. The actual number in datum might be lower, but on the dashboard we show it in atom. So you know what you're looking at. And it's kind of reassuring to know that's not that it got worse, if you like.
Minting Costs and Utilization
But like I say, what you get in the meantime is you can mint your an atom almost like very low cost. It's like 0.25% feed to mint the loan. And then you go and take that, you know, 500 an atom. And the aim is to be able to farm it, you know, borrow a stable against it, etcetera.
Building Liquidity for Assets
So if people like it, which I really hope they do, then what we will see is people adding to the pools for atom and de atom against. Actually, I don't think we have a pull for atom, but you can swap through it for astropor. But Datum and St atom and USDC, they're all enabled as pools against amatum at moment.
Encouraging Community Engagement
So right now, what we're really kind of trying to have a push for is actually to get that liquidity going, because we need that users to then be able to, you know, exchange it for something else or borrow against it and set the price for Amaton. So I think if were one of those protocols that frankly, had sort of huge vc's behind us and stuff, they'd probably dump a ton of liquidity into the pools for us.
Community-Based Approach
But we're not like that. We're very community based. That's our background, that's where we're from. So we're kind of appealing to the community to like, actually, hopefully it will pay off for you in the end. But to add liquidity to the pools for amatem so that everybody can start enjoying doing more stuff it.
Strategic Partnerships and Infographics
And there's been some really cool, what you call them, infographics, kind of charts, pictures people have been putting out of the strategies they're already plotting and planning to do with Amaton when it's enabled on, say, Mars, or, you know, with drop money's datum, or with Nola's protocol. Once amulet has achieved a certain amount of critical mass with amatom, I think it's going to get really exciting for uses.
Future of Yield Generation
Yeah, no, it's a really interesting lego block to add to the stack, for sure. Being able to get your yield upfront like this. One last question just to clarify my understanding on. And then Joe, feel free to jump in with any questions you have as well.
Clarifying the Yield Process
So when people are depositing, for instance, in the same example were using like the d atom into amulet to get their yield upfront and they're getting like, you know, let's say they're doing a thousand d atom or 1000 atom worth of d atom, whatever that is, right? Yeah, yeah.
Usage of dAtom
And they're getting 500 am atom, right, to use in whatever way they want. Is their d atom unusable while they hold that am atom or is it. Are both of those tokens usable?
Collateral Management
So with the initial vault we've got, it's literally just locked up and the collateral becomes unlocked as the loan is automatically repaid. So you know, say like 10% of your loan has been repaid, then you can pull out 20% of your collateral in the usual kind of way because it's 50. Sorry, I probably didn't mention it's 50% cap on the loan to value at the moment because it helps avoid too much.
Maintaining Loan Balance
Kind of just too much borrowing upfront is not good for the balance of everything. So yeah, you basically, at the moment, it's literally just locking your collateral bit like if you did it on a CDP with say maker and you locked up your ethereum and it's just locked in there and you're borrowing against it.
Liquidation Avoidance
The difference is amit never liquidates your position, so it's just locked. What we're looking to do is actually enable other kind of methods as well, like with LP tokens. That's why I was mentioning Apollo earlier.
Token Value Stability
So as long as there isn't essentially a problematic deposit token that actually loses value against the minted token, which is very unlikely with the way the protocol works. Anything that's got a sustainable kind of yield works with amulet.
Future Developments
And how do you guys handle that? Sorry, I know I said it was only one more question. Joe. No, go for it. No, it's okay.
Distribution of am atom
I'm going to have like 100, so I'll let you go first. Yeah. So like how do you guys determine how much am atom is distributed? Because it's based on like the yield, like the APR, you know, for instance, in this example, like D Adam.
Variable APR Implications
But that's variable, right? Like that APR changes. Well, the kind of saying is that the only debt is time as long as like whether the yield is 5%, 10%, 15% simply affects how long it's going to take for the debt to be paid off.
Understanding Economic Links
Now of course, there's a cost of time is money to some degree. And so obviously, like if it literally fell to like put, then that wouldn't be a very attractive repayment strategy. But the fact is that for every am atom that's minted, at the very least, there's either going to be two atom or d atom worth of atom locked up, which is effectively tying up that economic value.
Yield and Liquidity Management
Or over time, as the rewards come in, those will actually sit in what we're calling the amulet reserves, which is similar to what alchemy is called bed transmuta. And that is available for redemptions.
Anticipating Future Yield
Now, it doesn't exist really at the beginning because nobody's actually got any yield. The future yield is in the future. But when that future yield starts to trickle in, then that can also be used to add liquidity to the protocol in terms of enabling people to redeem their am assets for those assets.
Better Liquidity Access
And it's kind of in a better way. Like Tradfi, dare I say, in the sense that it allows users to sort of kind of use their liquidity upfront. That doesn't yet exist in the future yet, but at the same time, you don't have some, you know, middleman rehypothecating your deposits.
Clarification and Understanding
Yeah, that makes sense. Yeah. And thanks for clarifying some of these things. I'm trying to understand, you know, like, you know, the value proposition for different users.
Questions on Use Cases
Like who would use this? When would they find it attractive to use this? And maybe one last thing is what are the use cases that you see? So for instance, if people are like liquid staking, for instance, d atom right now, they're using it throughout these different applications. Maybe they're using it for like a Mars leverage staking strategy. Maybe they're using it for, you know, liquidity provision on astroport or, you know, somewhere else. How do you see the use cases for am atoms? So they would be, instead of doing this with their d atom, they would then go and take out a loan to get their future dadm yield and am atom. And then do you see them using that am atom instead of, you know, going and using their d atom directly for these use cases, they use this am atom self repaying loan instead.
Potential of Amnet
I think there are lots of ways people are going to use it. So I'm not thinking that anyone's going to choose necessarily one permanently over the other. But one thing that Amnet does that no other protocol currently at least does is allow you to retain your direct exposure to your original native atom, whatever that is. If you prefer the atom versus atom, that's cool, of course, but whatever your preferred exposure is, that's what's locked in the vault pulled with other people doing the same thing, but locked in that vault, no one gets touch that with redemptions or liquidations. And then you've got this am atom, which is this cool, exciting new version of atom that trades, not at the moment, admittedly, which means there's probably an ARB opportunity there for anyone who wants to go long on am atom, but which in theory at least, will ultimately be backed, by one atom for every am atom.
Liquidity and Risk Considerations
And that's true of other tokens we're going to enable. I think the next one we're probably going to enable is probably tier, possibly, but, we're looking at various lsts for that and others as well. and by doing that, you then have amatom that you can use to, you could, you know, liquidity pool it with datum, you could deposit it on Mars and borrow a stable coin. And worst case scenario, and this is, honestly, this is actually what I really kind of want to see happen once there's enough liquidity, is that people use it and think, well, okay, worst case scenario, say I put, you know, 50 am atom on Mars or on nirvana or wherever else. Worst case scenario, and that doesn't work out for me. I still have myself a repaying loan. My native principal capital is still locked up in Amet itself. Repaying that will come back to me.
The Safety Perspective
Obviously, it will take time, but I've still got it at the moment. If you do that with datum and you get wrecked, you're out. You know, that's what I don't want to happen to users. So the idea is you get the best of both. You get your exposure to your original token and you get to kind of play the field. Yeah, that makes sense. Cool. Yeah, it's like it's safer. Well, none of this is financial advice. I don't want to say safe. You say safe in finance and people are like, oh, God, no, I. You could say softer landing, maybe. Yeah, there you go. Lower risk. Yeah, lower risk, let's say. Well, the risk is spread out on a longer horizon. I don't know what the best way to say it is.
User Experience with Amulet
All I'm gonna say. I'm gonna say what I want, but then just say, like, it's not financial advice. How about that? That's the way. Yeah, same with everything I was saying on these spaces. Yeah, exactly. You know, it's. It's a. It's a. Yeah, it's like a safer. It's a safer way to. To use these different Defi applications is kind of the way for people to think about it. Is that the way that you would. You would pose it, Robin? Yeah. And I will say something here, which my team members kind of know, but I don't think anyone else actually knows. I actually. I literally have, obviously, as you can imagine, used different DeFi protocols in the past, and I literally had to use Alchemix to avoid myself getting wrecked when I was trying to start out with amulet, because I didn't have a lot, but I had enough to get started, and I didn't want to get wrecked, so I used Alchemix, and it was great until, I think, they got their curve pool hat, and it sort of depegged it.
Comparing Approaches
And that kind of was a bit concerning, actually. They've recovered since then, so I have a huge amount of respect for the people who built Alchemix, because I think they had a really great idea. I think the difference is that they didn't target the market more broadly for enabling the synthetics to be used across the ecosystem. I really hope that if people kind of fall in love with amulet and am assets, like I hope they will, then they'll enjoy using them. Basically, where you would use the native as well as lsts and everything else, it will sit alongside it. And we did a space with Zaki last night, and he was kind of saying that he could see, hopefully he could see that potential as well, that we would actually see people kind of adopting this alongside lsts and getting a bit more liquidity unlocked on the eco.
Understanding Amulet Mechanisms
I've got a couple questions, if you're ready to. Yeah, I'm ready. Okay, go for it. I usually don't understand fully how any protocol works until I use it myself. Right. So I guess what I want to ask is, just like in. In principle, liquid staking tokens, they'll unlock liquidity that gets bonded because we need to secure the proof of stake chains. But with amulet, you're unlocking liquidity that is not necessarily in circulation yet, but is guaranteed programmatically to hit circulation on a predictable schedule. Is that. Is that fair to say? Wow, that was great. I should have taken a note. I have to play back the recording. Okay, well, I just listened for a half hour and that's all I came up with. I'm just kidding. No, that's cool.
User Interaction with the App
Yeah. I mean, actually, the under the hood mechanism of how amulet works is very similar to drop and other lsts, in the sense that behind the scenes, the protocol is staking the asset for you. The difference is that instead of minting an LST that aggregates your yield and your principal over time so that it sort of increases with the yield as it comes in. Amla enables you to get the synthetic token to represent that future yield upfront. And we call it a self repaying loan because it's kind of easier to get your head around. But essentially it is meant to represent kind of your future yield. Okay. So from the user's point of view, I go to the. I use the app for the first time.
First Time User Experience
Let's say I have 100 atom. I have 100 atom in my. In my wallet. Let's say 50 of its stake, 50 of it is. Is liquid. What does it look like from, like, the user's wallet point of view? When I start taking advantage of the protocol. So the easiest way to access it, obviously, is through the app on amulet finance. And we have a bridge, which actually, Zacki said you should make it easier for b two, c. There's a bridge. So we're going to make it pop up when you come on board, which is exactly what we did for the testnet, actually. So when you join the website app, then you should hopefully see that there's a bridge button and you can bridge your atom straight into neutrons.
Bridging Assets
So that's to recognize my assets, let's say, on the home chain. Right. So if my atom is on the Cosmos hub, the bridge is going to be the first step because it's got to come over to neutron. Okay. Yes. All right. And the funny thing is, I looked really hard at ways to avoid having to do even that first step as a minimal friction. But because at least at the time were building cosmosm didn't exist on Cosmos hub, it wasn't really possible. And actually, compared to three years ago when I started, people are so used to bridging on cosmos, it's kind of not really scary anymore. So the first thing you need to do is just move your atom onto neutron, but the smart contracts are going to move it back onto cosmos hub to stake it for you.
Smart Contracts Functionality
So that's what you kind of do as the first step is you stick. And I'm assuming you're dealing with native atom here, not datum. Course with datum, it's handled by datum when you deposit the datum. But in terms of amulet smart contracts for cross chain staking, when you hit stake with your bridged atom, it literally takes it sends it across with IBC and it puts it through an interchain account, which is essentially like a wallet address that can be handled by smart contracts. Otherwise, it's very similar to a normal address that any of us would use. And so the Amnet smart contracts have their rules set up to track that position then of atom that's increasing from that interchange account.
User Control and Options
And within the smart contracts, which are all deployed in neutron, which is what's so super cool about neutron, it basically manages to track that information. And therefore the user who has at some point hopefully hit advance and minted themselves an amatomous that am atom debt is slowly reduced by the amount of that atom that is coming in. Now, users at any point, if they want to, can repay early with either amatum or atom so that they can reduce their debt early and withdraw some of their collateral earlier. They still have to wait for unbonding with native atom. Of course, we haven't yet enabled the LSM.
Looking Further into Features
Let me just ask this. So I. Yeah, yeah. I go to the app, I click. Well, you said the bridge comes up first. It's going to recognize that I have some atom on the hook. Yeah, it doesn't yet, but it will. Yeah. Okay, so it's going to pull from my liquid atom or I heard you say something about the liquid staking module. Am I going to have the option to pull from my staked atom to. I think we're going to look at maybe enabling that via drop, actually, because drop already enabled the LSM for moving into the atom. We ourselves can't directly move from the, using the LSM straight into staking an amulet.
Discussion on Validator Selection
And there are probably good reasons not to do that necessarily with what we do anyway, because essentially I probably need one of the devs here to explain it, but it involves picking one single validator to move into, and that's not how we kind of operate the way we do it. So. Okay. Yeah.
Introduction to Liquid Atom and LST
So what you would need to do is use at this point either liquid atom or an LST, like datum or St. Atom. Okay. But it's going to recognize St. Atom even if it's not on the hub because of just the nature of interchange accounts and all that. Yeah, the bridge page that pops up, you can make sure you can pick your chain that you want to move from and then you move the asset that you want from that chain onto neutron.
Asset Movement and User Experience
So it's the same as what you would do on Kepler, but we're trying to make it, like, easy upfront on the app. So you could do that. You could just as well do that on Kepler or leap. But on the page you can see we basically use skip behind that and we've skip API, so you can use skip to bridging your atom from Cosmos hub onto neutron using the bridge kind of pop up.
Understanding Protocol Entry
All right, so my atom is going to get. Is going to enter the protocol. So that atom that was liquid on the hub is going to get transferred over to neutron. I'm working with an amulet contract. That atom is going to disappear and it's going to be replaced in my wallet as. As am atom. Right. It's not disappearing, actually.
User Concerns About Funds
So what happens is people who are not so familiar with DeFi to be scared that their funds are disappearing. Right. That's why I wanted to say, like, from the wallet point of view, not just the end user point of view, because LP is a little scary the first time. Right. You LP, the stuff disappears. Right. So, yeah, so, yeah, I'll let you explain to.
User Interface and Usability
Yeah, so, I mean, it's kind of. It's a shame we haven't got a screen open because I could. I do a demo often with people I'm sort of explaining to you on different networks and stuff, but you will see very clearly on. We have really tried to make the front end almost feel like you're using, I don't know, a normal banking app or something where you can literally see what you would expect to see in terms of everything.
Dashboard Overview
So on the dashboard, you get a quick click kind of version of things. So you can see that you can. Once you've bridged, you can stake your atom and then you can get an advance, and then if you want, at some point you can repay, or you can actually completely close your position if you want to actually use your collateral to repay, which most people probably won't want to do, actually, because you probably want to keep your collateral and repay some other way.
Available Options on the Dashboard
But those are the four kind of big ticket steps that you can take on the dashboard. There are also speedier versions. One is called one click advance, where it will combine stake in advance and max out the amount of advance you can take. So if you click one click advance, which is towards the top right of the screen, then you can both deposit your atom and mint your am atom at 50% in one go.
LP Strategies and Suggestions
And then for people who just want to lp a load of am atom and don't want to actually stake, they just want to say, I mean, one classic position, which frankly, if I had ash and myself, I'd probably be doing, is you take your bag and you say split it into, essentially you split it into two or three and you either stake and mint sort of two thirds of it and then pair that with the remaining third or you go to the conversion and you just mint half of it into am atom and you pair that with your other half.
Visibility of Positions and Assets
Hope that makes sense. You could do either of those. It depends kind of your personal sort of preferences as to whether you actually want to have a staked vault. If you go the stake route, then it will show you on the dashboard that you have a position that is staking. You have an atom staking vault position and it will show you how much you've borrowed against it, which we expect most people, because it's low risk, hopefully, and it doesn't get liquidated, will borrow the whole 100% of what they're allowed to borrow, which is 50% in value.
User Experience Enhancements
So that is visible all on the dashboard. And then underneath, you can also see if you've got any unbonding atom, then that will pop up as well. And you can also see the assets that you haven't used on the platform, but are visible essentially on neutron. And hopefully we're going to enable, as we develop onto other kind of cross chain methods, will show people their assets on other chains as well.
Intuitive Design and Navigation
So all of that is literally on the front page. And then if you want to dig deeper, there is a vaults page where you can see more and manage more in more granular detail, your vault position. But the idea is meant to be like, as intuitive as possible. So you go in there and it kind of like you follow the screen from left to right.
Engaging the Community
Hey, before Joe, you keep it rolling here. I just wanted to give the community an opportunity as well here to jump in with any questions. Good idea that they might have, just in case, because I know we only have a few minutes left. I got to jump off in a few minutes. And so if there's anyone in the audience that wants to come up and chat about amulet and talk about any of the things that they're building, feel free to just request to speak and.
Encouraging Audience Participation
We can put a comment down below if they're at work or something and they can't come up and I'll be happy to ask the question as well. You know, that'd be great if community usually thinks of a lot of things that I can't think of on the fly, so appreciate anybody that has any kind of question, especially if you came in late to the space. I know in the beginning, I mean, so.
Final Remarks on Platform Updates
Oh, go ahead, Robin. I was gonna. I was gonna. No, no, sorry. I was just thinking if we're running short in time, one thing I just wanted to kind of tell people about, which has had a slightly. I've just been having stream of messages from the dev team actually about this because we've had some issues with it initially, but I think it's literally now been updated.
Ingot Rewards System
So we have a reward system called ingots. It's thanks to actually the droplet team at the drop team who helped us onboard something very similar to droplets because were trying to figure out a way to measure participation with amulet before there's any TGE or anything. And if you LP, well, if you even just mint and hold some amatom, then you basically get one ingot per day per dollar of Amaton held if you LP that am atom.
Current Pool Policies
Currently we're going, we're live on astroport with pools with Datum and ST Atom and USDC. And those pools are very small at the moment, but we plan to be very generous with being got. So you'll get five times multiplier on the LST pools and ten times multiplier on the USDC pool.
Integration Opportunities
And then of course, as hopefully the liquidity grows, we'll be integrating with tons more protocols. And just like droplets, you'll be able to double dip, you'll be able to get droplets with your d atom and ingots with your am atom and it will be a shower of points. Oh, sorry, someone said I'm not allowed to use the word points because, you know, everyone hates points now after eigen layer, but you'll get rewards.
Community Engagement and Partnerships
All right, so that's a good TLDR for people that are just joining and, you know, token. What about token? What about token? There's some alpha there. You mentioned the beginning about some partnerships. You mentioned Apollo. I think that for your type of protocol, you probably need a lot of partnerships, right? Because you need other protocols that are going to accept the token, right?
Partnerships and Protocol Integrations
So do you have any other partnerships that you could mention? Even if they're like off neutron would be interesting as well. Like what you have going on, what, who you're going to be able to kind of buddy up with to get some use case for the AM assets. Well, one of the nicest things about amulet actually is genuinely we are super composable in terms of actually trying to enable other people's strategies as long as they're sustainable, or integrating and giving hopefully the opportunity for users to use AmaTM elsewhere.
Open Channels and Future Growth
So we've got lots of channels open. I mean, officially, the only official partnership announcement we put out was with drop, but we have had channels open for months with Levana, Stride, Apollo, Mars, Shade, who I know really well, loads. And anyone who is hearing this and can think of a protocol that they'd like to see am atom featuring on my DM as I open, because we're always open to suggestions and feedback for sure.
Resources for Community Learning
Robin, did you. So for people that want to learn more about amulet, where should they go? And then also, how can they get started? Okay, well, I will say for one thing, my bad. I have not produced nearly as many materials. I don't have someone as amazing as Zion working on the team.
Improving Educational Materials
So it's absolutely me who is producing, trying to ensure that the explanations are sufficient and they are definitely needing a little bit of work in that department. But in terms of the sort of basic understanding of the protocol, we have a medium page where you can read all about it in terms of a guide of how to use amulet, just like we talked through just now.
Testnet Guide and Community Engagement
That's work in progress. The nearest thing you can get is actually on the testnet. There's a testnet guide which we have pinned in our telegram channel, I think. But yeah, I do realize we probably need to do a bit more on the educating and awareness front to explain things. And anyone who wants to volunteer to help with that side of things, you would be much appreciated because I am a little stretched.
Future Educational Guides
But yeah, we will put out more guides on exactly what Joe was asking about how to use it, what happens, and the Twitter's threads that we're putting out do actually explain step by step lot of what you can do. But yeah, we're keen to like produce more guides.
Recording of Discussion
Fantastic. Yeah, no, and also for the people that came late, another great resource, just this space that we just did the recording for it, just listen back, because Robin went through in pretty great detail, describing and answering a bunch of questions that I had as well around what amulet is, how it works, you know, different things like that.
Final Tips and Engagement
So definitely listen back. And yeah, if you have any questions, hit them up on Twitter. And yeah, is there anything else you wanted to leave the audience with Robin before we close her off. No, just get yourself into those pools with am, atom and diatom and start seeing some ingots.
Personal Experience with Ingots
I checked mine and it went from 14 gots yesterday to 28,000 now. So I'm doing all right. So I hope you're all going to catch up. Very nice. Very nice. Yeah.
Closing Remarks
So, yeah, everyone listening, thanks for joining. Thank you, Robin, for jumping on. Joe, thanks for coming to co host. Anytime, man, anytime. Yeah, absolutely. Yeah. We'll have to do another one in the future, Robin, when you guys have launched some more stuff and things are further along.
Ongoing Support and Communication
Yeah. And anyone got any questions, either ping us on our telegram or if you don't use telegram, you can certainly message us on Twitter and we'll x and we'll certainly try and help every way we can.
Final Thanks and Farewell
Awesome. Thanks, guys. We'll see you on the next one.
