This paper briefly analyzes the strength and prospect of Amara, a multi-chain assets lending protocol within the Polkadot ecosystem, from a macro perspective.
Amara is still in its early stages, and the development of Amara is greatly influenced by the Polkadot slot auction. This article can only be used as a general reference.
Background: Polkadot is moving from the Technological Era to the Ecological Era
As a cross-chain technology representative, Polkadot is deemed as the most comparable project to Ethereum, which will gradually be validated after the parachain slot auction.
Polkadot slot auction, in other words, Polkadot mainnet is online.
The difference is that Polkadot has multiple socket interfaces for multiple dedicated chains, and can share security and interoperability.
Ethereum is known as the King of the Public Chain, not because of its poor TPS performance, but because of the huge amount of users. Many other public chains, while far ahead of Ethereum in performance, are not considered more valuable than Ethereum.
As the auction approaches, the era of storytelling is over, and all eyes are on the implementation, and Polkadot will move from the technological era to the ecological era.
Polkadot’s ecological prosperity rests on winning the slot project, of which Acala Network is the most popular one.
Polkadot ecosystem is mainly developed around the parachains. Different applications can be built on each single parachain project, such as trading and lending, to form a comprehensive ecology.
If the Acala ecosystem can flourish, then the Polkadot ecosystem can flourish to a large extent.
This is due to Acala’s project strength and the community popularity.
According to the data, there are currently more than 300 projects on Polkadot, and almost all of the well-known projects have announced their participation in the parachain slot auction.
Among all the projects, Acala has the largest overseas community and the highest reputation.
Acala is closely related to the Polkadot ecosystem
Acala is the favorite on the Polkadot slot auction, which means that once Acala goes live, the ecosystem building will be one of the top priorities for Acala.
This is what we should pay attention to and layout in advance.
Based on public information, Amara Finance may be the first project built on top of Acala, not ruling out an in-house incubation project.
Amara is a multi-chain assets lending protocol within the Polkadot ecosystem, focusing on open, privacy preserved, multi-chain lending markets.
Amara’s early products are mainly lending business. And Acala itself also has a lending business, mainly the lending of the stable currency aUSD. In addition to stable coins, Amara is more of a loan between non-stable coins.
Amara’s success is not a simple replication of Venus
There are many projects on Polkadot ecosystem, such as Konomi, etc., Amara is not the only one. So how can Amara break the market?
We know that the reason why lending projects such as Lenhub on HECO chain and Venus on BSC chain got up is the driving force behind the two head exchanges, Firecoin and Coinan, and the massive asset scale and user traffic brought by the two exchanges for HECO and BSC.
So, the success of Lenhub and Venus does not only rely on technology.
So for Amara, can it copy the path of Lendhub and Venus?
The answer is clearly no.
Here is the reason:
First of all, the scale of assets carried on the Acala chain, and even the scale of assets on the Polkadot chain, is far from being compared with the leading exchanges such as Huobi and Binance. The two types are not at the same level at all.
Secondly, Acala, as a DeFi infrastructure provider for Polkadot, may be less supportive of the ecology than Binance Huobi’s empowerment. More in the technical aspects, rather than in the ecological field. The asset carrying capacity on the Acala mainnet chain itself is limited, and the scale of assets mapped in through cross-chain is also questionable.
Finally, Amara is also facing competition from other projects in the Polkadot ecosystem, such as other lending projects in addition to Acala. Amara to Polkadot ecosystem, is not as unique as Lendhub to HECO and Venus to BSC.
Therefore, Amara’s breakthrough can not rely on Acala only, but also rely on its own differentiated features and technological advantages.
The development of Amara grows with Polkadot ecosystem
Unlike centralized exchanges where resources are skewed, in the decentralized space, the success of any project does not happen overnight.
Even as strong as Polkadot, it has faced many problems in its own development. It took five years for Polkadot to initially become a usable network.
Amara’s development will be in line with the scale of Polkadot’s ecological assets. The characteristics of Polkadot and the scale of assets carried by Acala network predestine Amara not to explode at once, but to accumulate steadily.
Of course, Amara also has its own characteristics to achieve differentiation from other competitors. At present, there are many projects doing lending business on Polkadot ecosystem, but not many focus on All in lending, and Amara is one of them.
According to market information, Amara has the following differentiating advantages.
Amara team has rich experience in the DeFi lending field, such as the rich project development and implementation capabilities. Amara, is not an unfamiliar project to the team, and the choice of Polkadot ecosystem and lending track is in line with the team’s resource endowment and positioning planning.
In addition to mainstream asset lending, lending of long-tail assets will also be an important highlight of Amara’s products. From the current bull market, some high-quality innovative assets have recorded good gains. Of course, the challenges for long-tail assets are more challenging, especially in the area of asset security. Amara lending on long-tail assets will be later than lending on mainstream assets with some innovations in the security model.
NFT assets lending.
Recently, the founder of AAVE said on Twitter to include NFT assets as collateral in the lending space. NFT is a hot spot in the 2021 blockchain space, and the market is seeing the huge potential of NFT and working to develop more applications, and the Amara white paper, Top NFT Asset Lending, is also an important element of Amara Finance.
The beginning of breakthrough: MaraLink, the cross-chain bridge protocol
The significant news for Amara recently is that Amara has joined forces with Phala to launch MaraLink, an asset cross-chain solution.
This shows that Amara team not only positions itself as a lending agreement, but also has the willingness and strength to deeply participate in the construction of Polkadot ecosystem, which also confirms the author’s previous inference: the technical strength of Amara team is very good.
Of course, the specific implementation is still waiting for time, but it can be recognized by Phala is an indication. This is also one of the important reasons why I am optimistic about the Amara team.
From Amara to Amara Finance
The Amara token distribution model has not been released yet, the white paper does not disclose the token economic model, only the name of the token is MARA, which shows that the official launch of the economic model is very cautious.
The only thing we should focus on is Amara’s roadmap, and the only uncertainty now is the progress of the Polkadot slot auction.
2021 Q1: Protocol startup
2021 Q2: Community sale will start
2021 Q2: Mainstream Token Lending Protocol and Liquidity Incentive Protocol will be launched
2021 Q3: On-chain Governance Platform Incentive Protocol
2021 Q3: Long Tail Asset Lending Protocol and Liquidity Incentive Protocol will be launched
2021 Q4: Extension of the CLD Protocol
2022 Q1-Q2: Flash loan, NFT
2022 Q3: Cross-chain assets
Amara is a multi-chain assets lending protocol within the Polkadot ecosystem, focusing on open, privacy preserved, multi-chain lending markets. Amara seamlessly connects mainstream digital assets and top rated long tail assets that improve overall liquidity and expand the DeFi horizon. To achieve these goals, one of the top priorities would be building the bridge based on TEE trusted computing. Eventually, we want to become the hub of lending and exchange in the crypto world.