AMA RECAP: Polkadot and Amara’s Vision | FF Venture community
On Jan. 15th 12:00 PM (UTC+0), FF Ventures held an AMA about Amara in their community. The guest speaker is Ines, an Amara ambassador in the English community, and the host is Lam of FF Ventures. The event was met with an overwhelming response from enthusiasts.
The theme is: Polkadot and Amara’s Vision
For those who missed the event, here is the recap:
Q1: To begin, could you please introduce yourselves to our community?
Hello, friends from the FF Ventures community. I am Ines, I am an ambassador in Amara’s English community. I am so honored to be here to introduce Amara to you.
Q2: Please share with us about the vision of Amara Finance. And why did your team choose Polkadot to develop Amara but not other blockchains?
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.
Polkadot has already raised nearly $200 million, become a top ten coin by market cap, and started to be integrated with other networks, like Chainlink. These features allow us to develop our platform.
Amara Finance is a cross-chain financial aggregator for NextDeFi aiming to be the DeFi collaboration center. Amara Finance has three core products, AmaraLend, AmaraLink and AmaraPay.
In terms of our vision, 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.
Q3: Can you share about Amara’s Roadmap? Do Amara have some important events next time?
2021 Q1: Protocol startup
2021 Q2: Community sale will start in May
2021 Q2: Mainstream Token Lending Protocol and Liquidity Incentive Protocol will be launched in June
2021 Q3: On-chain Governance Platform Incentive Protocol
2021 Q3: Long Tail Asset Lending Protocol and Liquidity Incentive Protocol will be launched in August
2021 Q4: Extension of the CLD Protocol
2022 Q1-Q2: Flash loan, NFT
2022 Q3: Cross-chain assets
Amara’s first IDO will be launched officially on Solarbeam on January 17th, 2022. Everyone is welcome to participate.
We jointly held an airdrop event with Impossible Finance, hoping that ordinary users can actively participate. https://twitter.com/impossiblefi/status/1480827240036200450
Before the launch of Amaralen v2, it is planned to start a wave of initial liquidity incentives. they will be very friendly to ordinary users. The plan is to borrow users’ LPs and give users incentives.
After Amaralen v2 goes online, users can deposit LPs and earn more income under the premise of safety.
Amara will launch a Ieo plan in the future. Stay tuned for official news.
In addition, you can expect the TVL three months after AmaraLend’s launch. Activating the sleeping assets like LP is significant for users.
Q4: Calling yourself as a Defi 2.0 project, can you tell us what’s the difference between Defi 1.0 and Defi 2.0 and what problems Amara Finance is solving that Defi 1.0 is unable to do?
Next DeFi, mainly refers to AmaraLend v2. AmaraLend v2 is Amara’s most creative product. There are many lending projects in the market at present, and people are keen on imitating and copying projects but few to create. AmaraLend has upgraded several times, and finally found its own place in the DeFi world.
At first, AmaraLend’s design was very simple, just to be a multi-chain deployment lending platform focusing on long tail assets, in other words, a lending platform for high-quality assets with small cap.
Let’s call it AmaraLend v1. The original AmaraLend v1 is just an ordinary lending product with no much innovation.
Therefore, Amara team decided to innovate it. After heated discussion, as well as adopting investor’s suggestions, AmaraLend v2 model came out finally.
AmaraLend v2 is an innovative product. You can see the graphic below.
To sum up, AmaraLend is to release the liquidity of LP.
In the DeFi field, interest-bearing assets like LP are huge in scale, but are called sleeping assets because there is no suitable “place” for them.
For general mining users, LP principal will be locked on DEX after yield farming, which makes the capital utilization rate of LP assets not high.
In AmaraLend v2, users can deposit LP to autocompound module for two advantages.
Firstly, Amara will help users gain higher APY by putting LP to DEX automatically, getting mining reward and autocompounding the reward.
Secondly, after depositing LP, users can borrow USDA, stablecoin under Amara algorithm, by staking LP besides autocompound reward, which creatively releases LP liquidity.
Q5: Blockchain technology hasn’t even reached 1% of the global available market. What’s needed in order to bring the other 99% of people into space? And what is your team doing to make Blockchain technology more adoptable and can use it globally?
The blockchain itself is a permissionless and global thing. 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. These features allow us to develop our platform.
The year of 2020 has seen DeFi grow from niche to the most shining star in the cryptocur- rency ecosystem, guiding blockchain into ecological spring. DeFi (Decentralized Finance) owns obvious advantages and potential application prospects compared with traditional finance.
At this stage and in the foreseeable future, DeFi has four opportunities:
1.Improve and upgrade the existing financial services in a distributed way. For in- stance, the request for asset collateral lending, collateral liquidation and settlement, financial system security, and strict risk control, etc, which still exist rather than subverted in DeFi.
2.Become a distributed fundamental support in the emerging financial field.
3.Improve settlement efficiency, reconstruct governance trust, and coordinate multi- agent collaboration on the blockchain network.
4.Solve the existed issues of DeFi, on which the projects are distributed in dots and lack connection, and achieve the interconnection among multiple DeFi projects.
Q6: I read in white paper, Amara Finance is launching a lot of new projects such as partnership with Phala Network, global airdrop campaign and Amara Lending Platform. Please elaborate the core features of Amara Finance?
First, Amara is a lending platform that focuses on high quality long tail assets, which is very different from those leading lending projects that only cover mainstream assets. we are looking to build a model that is going to generate greater returns with less risks.
Second, Amara is developing its own cross-chain bridge protocol to allow users to transfer assets between other blockchains and Polkadot. With that, we will become a multi-chain assets lending platform and achieve multi-chain deployments.
We are also going to develop NFT related financial products, which is a very new concept in the space. In addition to the product features, we take security very seriously.
Amara is advanced in the following aspects:
1) AmaraLend v2 is deployed on multiple chains;
2) The collateral of AmaraLend v2 is LP token, and the collateral of Abracadabra (Spell) is ibtoken, which is the deposit certificate you get after depositing;
3) The stablecoins lent by AmaraLend v2 in the early stage, in addition to mainstream stablecoins, will also be connected to other algorithmic stablecoins, and we are more open;
4) Later AmaraLend v2 will issue its own algorithm stable currency USDA.
Q7: What are the types of assets that can be borrowed on AmaraFinace? Do you plan on adding Synthetic Assets to the list of assets that can be borrowed on your lending platform?
The white paper is outdated, and we have updated and upgraded the content of the white paper, which is our Amara Lend v2. The link to the new white paper is here: https://amara.gitbook.io/amara-finance/amara-v2-doc
In v2, our users are such users who hold LP for mining. Users can deposit their LP into v2, and v2 can automatically help users to reinvest and obtain higher APY. In addition, users can use their LP as collateral to lend STableCOIN. For example, USDT, USDC, BUSD.
Regarding the utilization of long-tail assets, we will accept the LP as the collateral of the standing committee assets. Lend stablecoins.
Q8: Do I need to pass a registration and do an Identity Verification to Lend or Borrow crypto assets, how will Amara Finance manage the security services ? Where do you see the weaknesses of the traditional lending structure of the finance industry?
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.
Q9: An experienced team is the most vital thing in building company growth. A project will not develop without being managed by an experienced team. So how about the Amara project? Does your team have good experience in the cryptocurrency world?
Amara Finance is an international team with members from both North America and China. All of Amara team members have very rich experience in mainstream blockchain operations. AmaraLink gained the third place in Wanxiang Hackathon for 2021 and received a grant from Polygon Development Support Program.
We all understand that the blockchain is borderless so an international team is necessary for the development of our project. Our core members are early code contributors to Polkadot and have rich experience in leading technology companies, and blockchain projects, as well as in finance, media and community building.
Q10: Almost 80% of investors are focused purely on the price of Token in the short-term instead of better understanding the real value & health of the project. Can you tell us about motivations & benefits for investors to hold your Token in the long-term?
MARA is the governance token of AmaraLend, and global users can participate in the governance of AmaraLend through MARA. The Amara team pursues a decentralized governance model in the form of DAO, and hopes to build AmaraLend into an excellent DeFi2.0 infrastructure through the efforts of all MARA holders.
1) MARA holders can participate in the online voting of the long-tail asset LP lending market. After knowing the relevant asset information, MARA holders can vote on whether to open the corresponding asset lending market.
2) Participate in the management of the Amara platform. Long-term Amara supporters can participate in the governance of the platform. Participating in management will be rewarded with service fees, which come from platform profits.
Many users may concern about the burning system of MARA.
In the program of AmaraLend v2, Amara will release its own stablecoin USDA which is minted by MARA burning. For example, the value of a MARA is 5 $u, then its burning will mint 5 USDA. Increasing demand of USDA will encourage more MARA burning. That’s the deflation system of MARA.
Q11: A strong community not only brings interesting ideas to the project but also attracts larger partners. So how #Amara planning to build its community? And is there a plan to recruit people with Blockchain experience to the #Amara team?
Amara’s Twitter followers are over 60K. Amara has a good sense of localized operation, and started the construction and operation of local communities very early. To date, there are more than 476 pre-ambassadors, and 65 first-class ambassadors jointly managing these communities with the team.
The community covers 16 countries and language regions, including English community, Russian community, Persian community, Chinese community, Vietnamese community, Turkish community, African community, Indonesian community, Arabic community，German community，Srilanka community，Thailand community and Pakistan community. These communities are operated and managed by local ambassadors.
In addition, our local communities will hold regular meetings to synchronize their operations.There are many ways for users to participate in the construction of Amara.
1. If you are an Amara enthusiast, you can join our community. We have carried out many activities in the community, providing rich peripheral gifts, cash and other rewards.
2.If you have special skills and core resources, you can apply to be our ambassador. Our ambassador application channel is open all year around. For now, 300 pre-ambassadors were chosen, and 12 of them became the first batch of first-class ambassadors.
Q12: Which areas are you focusing on at the moment? (DeFi, Stake, Dapps, Yield Farming, NFTs, Gaming) and what are Amara’s goals this year?
We will focus on DeFi and will pay attention to NFTs. For now, we need to focus on Amara’s existing business first.
Users are welcome to follow us and get first-hand news.
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.