AMA Recap: Wake UpYour LP | 7 O’Clock Community
On Jan. 11th 11:00 AM (UTC+0), 7 O’Clock held an AMA about Amara in their community. The guest speaker is Rachel, an ambassador in English community. The event was met with an overwhelming response from enthusiasts.
For those who missed the event, here is the recap:
Q1: Hello, welcome to be our guest. Let’s start with a brief introduction about you and Amara Finance.
A: Hello, friends from the 7 O’clock community. I am Rachel, an ambassador at Amara Finance. I am so honored to be here to introduce Amara to you.
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. AmaraLend is a lending protocol about LP liquidity. AmaraLink is a multisig cross-chain bridge based on Chainsafe. AmaraPay is a global payment gateway protocol.
It is known that Amara Finance belongs to Polkadot ecosystem, but Amara also has the desire of multi-chain deployment. 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.
Q2: AmaraLink, one of Amara’s core products, will be pre-launched in late January, and plans to bridge popular public chains such as Moonriver, Ethereum, Polygon, Solana and BSC. What changes will AmaraLink bring to the way of asset transfer on different chains, and how to achieve it?
A: Thank you for your concern about Amara Bridge. Crossing chains will be a must in the future DeFi scenarios with the rise of applied public chains. Ethereum used to outshine others in the past, but now excellent chains like BSC, Solana, Polygon, Avalanche and other public chains perform well in the market, which generates the demand for cross-chain transactions.
Let’s talk about the product progress first. According to AmaraLink’s development schedule, it will be launched in late January or early February, 2022 and will connect two ecosystems of Polygon and BSC, realizing the cross-chain transfer of “specific assets” between Moonriver and Polygon, BSC. AmaraLink will be deployed on other public chains such as Solana and Harmony based on the progress after its launch.
Maybe some friends are not familiar with Moonriver, so please allow me to introduce Moonriver first. Just like the relationship between Kusama and Polkadot, Moonriver is the pioneer network of Moonbeam. They share almost the same underlying technologies but have their own economic environment for operation . More than 60 projects are running smoothly on Moonriver.
Let’s go back to AmaraLink. Many people joke with us that AmaraLink is like an independent project.
AmaraLink has the highest exposure and got the most awards among all Amara products.
In May 2021, AmaraLink received Polygon grant. In October 2021, AmaraLink gained the third place in Wanxiang Hackathon for 2021 and was recognized as the most potential developer by Moonbeam. Though it hasn’t been announced officially yet, AmaraLink has also received great help and support from Moonbeam. The development of AmaraLink is not to prove the technical strength of the team, nor is it a whim, but to support AmaraLend by realizing the cross-chain function that fully meets the needs of the actual production.
How to achieve it? Simply speaking, it is common to all cross-chain bridges. Two contracts of one asset will be deployed on two target chains A and B. After depositing the asset into the contract on chain A, the contract on chain A confirms and locks the asset. Receiving the news, the contact on chain B maps the corresponding asset which is also valuable and recognized by chain B. Therefore, it’s not a real asset transfer but a mapping in another chain. This is how AmaraLink works.
Security is the most important thing when crossing chains. AmaraLink refers to and upgraded the popular Chainsafe, a market-proven technology solution with high security and reliability.
Let’s say back to the coordination. AmaraLend needs a safe and stable link to LP world since it focuses on LP. That’s what AmaraLink helps. AmaraLink will increase the coordination for the whole ecosystem.
Q3: Amara official website 3.0 has been launched, representing the latest technological development and ecological progress of Amara. It is said that AmaraPay will be launched after the development of AmaraLend and AmaraLink. Users can exchange local currency to crypto assets in global compliance areas, and support more than 60 countries and regions around the world. What impact will AmaraPay have on users’ lives after it is launched?
A: Thanks for your concern about AmaraPay. To put it bluntly, it is not easy for a technical team to develop three products at the same time. AmaraLend is the most important among the three core products. AmaraLend is a lending protocol about LP liquidity, which can not only help users achieve higher APY, but also lend USDA(stablecoin under Amara algorithm) by staking LP to fully release LP liquidity. AmaraLend is the most innovative product and the cornerstone of Amara ecosystem.
AmaraLink is a multisig cross-chain bridge developed by ourselves, which achieves the cross-chain transfer of specific assets between Moonriver and Polygon, BSC. AmaraLink will become the entrance for users to Polkadot ecosystem. AmaraPay is a global payment protocol, which is an important supplement to Amara ecosystem.
AmaraPay’s launch will bear significantly on users.
If you are a user in a compliance area, you can
firstly, buy crypto assets with legal currency in ease and compliance;
secondly, apply for real asset cards or virtual cards to manage crypto assets;
thirdly, achieve offline payment by the crypto assets real-time price in most countries and regions around the world.
It can be said that AmaraPay will open up the boundary between traditional finance and blockchain finance, and achieve low friction and efficient circulation. In the future, crypto assets will be more closely related to our real life. We will use it in our daily lives, not just the speculation in the secondary market.
Q4: Amara, which is committed to multi-chain deployment, has launched three core products: AmaraLend, AmaraLink and AmaraPay and aims to be a DeFi collaboration center that bridges Polkadot and off-DOT world to achieve cross-chain collaboration better. Compared with DeFi 1.0, what are the breakthroughs and advantages of “NextDeFi”, and how do you view the subsequent development of DeFi?
A: 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. Because innovation means risk, high cost and energy investment.
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, which creatively releases LP liquidity.
Of course, USDA can be put into the recycling model to get more benefits.
For detailed technology doc of AmaraLend v2, pls refer to our WIki: https://amara.gitbook.io/amara-finance/amara-v2-doc
Q5: Regarding LPtoken, generally I put my LPtoken on DEX for mining. How does Amara view this market?
A: We should know that LP is a huge market and the majority of assets in DeFi is LPtoken. However, it is not used effectively due to all kinds of reasons. As far as I know, Spell created a market of billions of dollars just with ytoken on Ethereum. And LP market is several times bigger than ytoken in scale.
I know you want to get high interest by holding LPtoken. If you stake LP in Amara, your revenue will not drop but increase because adopting vault in lending will significantly increase the efficiency of capital and bring excess earnings, which is a win-win situation.
Q6: When it comes to DeFi, security is a vital issue. Since the beginning of this year, there have been many incidents of hackers’ stealing coins from exchanges, wallets and Dapps. For example, in mid-December, GrimFinance, a compound interest platform in Fantom, suffered a p2p attack with a loss of over 30 million. What technical support and measures does Amara have to guarantee the safety?
A: 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.
Q7: In terms of cooperation, Amara has been supported by ExNetwork and DEC.venture, and has partnered with Moonbeam, Polygon and others in the ecosystem. Besides them, are there any other institutions and teams that will be Amara’s partners?
A: Amara’s partners will be recognized after official announcements based on substantial cooperation in products or business.
At present, Amara has a pragmatic cooperation with Phala Network with whom we launched the original AmaraLink which of course experienced technical iterations or reconstructions.Also, we received Polygon grant to develop our bridge. In addition, we will cooperate with Ins for AmaraPay. And we are integrating Chainlink price feeds system. Moonbeam supports us a lot, although it is not officially announced yet. We also partnered with Harmony, a very strong public chain, on which AmaraLend will be deployed. And recently, our IDO will be on Solarbeam, the biggest DEX on Moonbeam.
Of course, there are some partners we are still negotiating with, including the star projects on Polkadot. We can’t say too much about it. If you are interested in our partners, move to our official website please.
Q8: Amara has spread over 13 countries and regions around the world, and the number of Twitter followers has exceeded 44K. Please tell us about the scale and operation of Amara community. And how can ordinary users be part of Amara?
A: Amara’s Twitter followers are around 44K. 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 200 pre-ambassadors, and 12 first-class ambassadors jointly managing these communities with the team.
The community covers 13 countries and language regions, including English community, Russian community, Persian community, Chinese community, Vietnamese community, Turkish community, African community, Indonesian community, Arabic community and German 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.
- 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. Welcome to join the warm Amara family in the winter of the northern hemisphere.
- If you have special skills and core resources, you can apply to be our ambassador. Our ambassador application channel is open all year around. Up to now, thousands of people have participated in the Amara Ambassador Program around the world and 300 pre-ambassadors were chosen, and 12 of them became the first batch of first-class ambassadors.
In addition, Amara’s first IDO will be launched officially on Solarbeam on January 17th, 2021. Everyone is welcome to participate.
Solarbeam is the leading decentralized exchange on Moonriver network, with a peak TVL of $180 million. Solarbeam recently introduced Eclipse, a platform built for cross-chain asset pools and auctions, enabling projects to raise funds in a decentralized and interoperable environment of Moonriver.
AmaraLend v2 also needs LP’s initial liquidity support before it is launched, and we hope you can participate actively. We hope to create the initial liquidity by renting the user’s LP, and return the user’s LP when it expires. Of course, the reward is very rich and will be related to our governance token MARA.
It is worthy to pay attention to parachain slot auction, which is similar to Polkadot.
Q9: Since you mentioned the IDO, we all keep an eye on it, can you share more information with us?
A: Pleasure.
Time:
Amara first IDO is on Jan. 17, 2022 on Solarbeam Eclipse from 13:00 to 19:00 UTC.
Price and token number:
Amara will raise $300,000 on Solarbeam and the amount of tokens is 600,000. This is a math problem for primary students, you can do it yourself :)
Eligibility:
In order to be eligible for participation in Amara’s IDO you will need to lock some of your Solar in either the vaults or on our new staking feature, veSolar. A minimum of 50 Solar is required to be eligible. There is no time limit on when to lock your Solar, you can even lock them during the IDO.
Multiplier:
Based on the amount and the duration of your Solar lock, you’ll have a corresponding multiplier.
Depending on which of the two IDO pools you will participate in (basic or unlimited), the multiplier acts in a different way:
- By participating in the basic pool, your multiplier indicates the maximum amount of $ value you are eligible to commit.
- The maximum commitment in the basic pool is $100 x your multiplier.
- Eg. Let’s say that you locked 50 Solar for one month in either the vaults or veSolar. Your multiplier is 10x. The maximum amount that you can commit in the basic pool is $1000 worth of Solar/Movr LP ($100 x 10 = $1000).
- By participating in the unlimited pool, your multiplier boosts your allocation.
- There is no limit in the amount that you can commit in the unlimited pool. There is also a 1% tax that is used for burns and buybacks.
- Someone with a 100x multiplier will get 100 times more allocation from someone with a 1x multiplier in the unlimited pool, even if they committed the same amount of $.
Commitment
On the day of the IDO you will be able to make your commitment in one of the two pools. To commit you’ll need to deposit Solar/Movr LP in one of the two available pools on Eclipse.
You can find a guide on how to add liquidity and get Solar/Movr LP, here
Overflow
Eclipse is using the overflow method, allowing commitments even if the target raise amount of the pool is already fulfilled, leading to a possible oversubscription of the pools.
Eg. Target raise amount of the basic pool is $150,000. The total amount of commitments though, are $1,500,000. That means that there is a 10x overflow on the basic pool (10 times oversubscribed).
Q10: Finally, are there any other progress worthy of attention and expectation about Amara?
A: Amara’s first IDO will be officially launched on Solarbeam on January 17th, 2021, and other Launchpad partners will be announced later.
AmaraLend v2 will start an incentive program for the initial liquidity before launch, which is similar to the parachain slot auction on Polkadot and is also the best opportunity for ordinary users to join Amara.
Amara will launch a Ieo plan in the future. Stay tuned for official news.
You can expect the TVL three months after AmaraLend’s launch. Activating the sleeping assets like LP is significant for users and the industry since LP is huge in the market.
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
