AMA RECAP: Amara Africa Community
On Jan. 18th 13:00 PM (UTC), Amara Finance Africa Community held an AMA about the recent progress of Amara finance and introduction of products in the community. The guest speaker is Lucia, an operation manager of Amara overseas community. The event was met with an overwhelming response from enthusiasts.
For those who missed the event, here is the recap:
Q1: Please introduce yourself.
We are so glad to meet all of our African friends. I am Lucia, I am an operation manager in Amara’s community. I am so honored to be here to introduce Amara to you. We’d like to express our heartfelt thanks to those participants who submitted questions, and special thanks to Adamu, he has been really helpful in organizing the meeting.We received many questions from many amara friends recently, I will answer the questions first, and we will pick the 5 best questions and release rewards next week.
Q2: We learned that Amara is a defi lending platform that solves the problem of underutilized LP in the Defi space. How does Amara solve that?
The existing massive LPs are still sleeping in the liquidity mining pool and have not been effectively utilized. Amara Finance emerges to solve this problem. Amara Finance is the pioneered multi-chain deployed DeFi 2.0 lending protocol, allowing users to borrow a variety of stablecoins while obtaining auto compounded liquidity mining reward.
Amara lending system consists of four parts: Liquidity Mining Module, Loan Module, Liquidation Module and Incentive Module. The Lending Module is the core of Amara Finance. Users can collateralize their deposited LP to borrow stablecoins deposited by other users.
Please note that the value of the collateralized LP is also increasing because of liquidity mining, so the user experience will be almost the same as interest-free lending.
In the near future, Amara will issue and support its algorithm stablecoins.
For more details, you can find it on this website: https://amara-finance.medium.com/amara-finance-a-new-chapter-of-defi-2-0-lp-based-liquidity-release-solution-529323e0de2
Q3: Why did Amara choose to deploy on the polkadot parachain?
As a next-generation high-performance blockchain network protocol, Polkadot connects multiple exclusive blockchain networks to a unified one with heterogeneous multi-chain network, and its excellent performance will bring greater value space and growth potential to the digital world.
Polkadot is built upon the Substrate framework and has significant advantages over Ethereum. While sharing its security, cross-chain interoperability, and forkless upgrades on the chain, Polkadot with more chains and more specialization means more possibilities for innovation.
Polkadot allows developers to launch chains and applications leveraging a shared security model, without having to worry about attracting enough miners or validators to secure their own chains. Polkadot’s parachains can use bridges to connect with external networks like Bitcoin and Ethereum.
Amara’s aim is not only finding a position on Polkadot, but also introducing more assets and users into Polkadot and becoming a multi-chain DeFi collaboration center.
Q4: Hi sir, I sighted this from the channel that amara is striving to be the most popular lending hub within the Polkadot ecosystem in the short term, now based on my perspective, looking at the novelty of Amara, how would that possibly be. Thank you!
AmaraLend is a lending protocol about LP liquidity.
The existing massive LPs are still sleeping in the liquidity mining pool and have not been effectively utilized. Amara Finance emerges to solve this problem. Amara Finance is the pioneered multi-chain deployed DeFi 2.0 lending protocol, allowing users to borrow a variety of stablecoins while obtaining auto compounded liquidity mining reward.
Amara lending system consists of four parts: Liquidity Mining Module, Loan Module, Liquidation Module and Incentive Module. The Lending Module is the core of Amara Finance. Users can collateralize their deposited LP to borrow stablecoins deposited by other users. Please note that the value of the collateralized LP is also increasing because of liquidity mining, so the user experience will be almost the same as interest-free lending.
AmaraLend v2 has 3 advantages: Firstly, it is multi-chain deployed; Secondly, it needs LP token as the collateral; Thirdly, it can lend stablecoin. Besides the mainstream stablecoin, it also accepts others.
For detailed technology doc of AmaraLend v2, pls refer to our WIki:
https://amara.gitbook.io/amara-finance/amara-v2-doc
We launched AmaraLend Beta last year, some of you may have joined.Users can deposit LP after AmaraLend v2 is launched and get more benefits under security.
Q5: We learned that Amara is a defi lending platform that solves the problem of underutilized LP in the Defi space, how does Amara solve that?
As mentioned in the last question, For Amara, the relationship with LP may be stronger because people can bring in inventory, get more APY, and lend assets into the market mainly for stability, and so there is little impact of market flustruations on Amara.
1. For LP users who have deposited into our platform, they are considered stable by mortgage. The more risk of these stable loans lies in their negative premium, so there will be no stable loans. A situation where a price change causes your loan to blow out. At the same time, the stable calculation you borrowed can be exchanged for stable U to avoid risks.
2. For those who hold these stablecoins themselves, the emergence of amara will make these stablecoins useful, but will stabilize the currency price.
Q6: Has Amara finance been listed on any DEX and secondly what will be the future of global finance and how will it affect Amara finance?
MARA will be launched in March. DEX and CEX are both possible, the names will be announced officially later. All airdrop and testnet rewards will be distributed after listing.
The initial market cap is 1.5m and the listing price is $0.5.
Q7: What is Stablecoin?
Stablecoin is an encrypted currency with a stable exchange rate with a certain target. Stability means that the price of this currency will not fluctuate significantly for a period of time and the price is relatively stable. Stable currency includes USDT, TUSD, GUSD, BitUSD, BitCNY, etc. It is a currency category only after the birth of block chain technology. Most of the advantages of stable currency lie in the field of encryption, in which stable currency acts as a function of value scale and can also be used as a hedge when the market falls. The exchange rate with French currency remained relatively stable. Because the conversion ratio between French currency and goods and services is relatively stable, the ultimate anchor of stable currency is goods and services, that is, the actual purchasing power.
Centralized stablecoins still keep their dominance, accounting for over 85% in market cap, but their risks were uncovered by a series of issues about compliance and asset transparency. People started to explore the solutions. Over-collateralized stablecoins like MakerDao opened up an effective way for decentralized stablecoins but with the problem of inefficiency. Its growth is limited by the market value of the collateral. Therefore, new solutions of algorithmic stablecoins like UST, Frax, Fei, etc. came out.
Algorithmic stablecoin is limited by the lack of infrastructure. Each project has to build their own applications to empower stablecoin and increase utilization by providing their own tokens as subsidy, causing a constant selling pressure to token price. So as of now, hardly can a project survive in this stablecoin war.
It can be learnt from these cases that successful stablecoin ecosystems met two requirements — high subsidy and application scenario. It would be hard to start from scratch if they had no other sacrificial supporters or such chances as CRV liquidity incentive. At the same time, if projects launched liquidity incentive as the subsidy only, they would face a major sell-off of the token and a sharp drop in price in the future.
It is a tough issue for any stablecoin project, and Amara LP lending market will provide a large demand for stablecoin issuers. Users who borrow stablecoin from Amara can avoid risks through real-time swap to major stablecoins such as USDT.
Q8: One of the issue of cryptocurrency especially defi is the problem of vulnerabilities, it’s everyday issue,we hear News of Sybil attackers intruding projects contract everyday which is the prime question in the cryptocurrency world. How well has AmaraFinance strengthened its project security most especially AMARALEND and what’s the outcome of the audit?
Security is indeed a key issue that all the projects in DeFi have to face. Once there is a problem with safety, projects can be a disaster. Amara attached great importance to security, and took many pragmatic measures to ensure the security of users’ assets from the very beginning.
First of all, all external DeFi protocol partners involved in AmaraLend must be reliable and time-tested protocols, such as CRV. This is also the reason why AmaraLend v2 finally plans to be deployed on BSC.
Secondly, in terms of mechanism design, AmaraLend introduces an insurance program to prevent bad debts.
Finally, reliable auditing is essential. If necessary, several auditing agencies can be invited to cross-audit the code. All Amara products will be audited before launch.
It’s such a pleasure to chat with you and we are looking forward to our next meeting. Hope we’ll meet more new friends from Africa!
About Amara Finance
Amara Finance is a cross-chain financial aggregator for NextDeFi aiming to be the DeFi collaboration center to bridge Polkadot and the off-DOT world. Amara’s core products include: AmaraLend, a multi-chain deployed lending protocol focusing on long-tail assets; AmaraLink, a multisig cross-chain bridge connecting Polkadot and off-DOT world; AmaraPay, an aggregated payment gateway protocol responding swiftly across the world.
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E-mail：amarafoundation@amara.finance
