The Polkadot ecosystem will outbreak soon, and I believe in Amara.

Notes: Contributed by a third party, which does not represent official views

More and more people are getting familiar with the concept of Amara, in this article, let’s see what exactly Amara does.

Above all, I would like to say that Amara doesn’t just make lending products, its ultimate goal is financial products. But now, lending is a point that no DeFi financial application can get around.

There are many products on Polkadot, but few focus on lending.

The biggest project of Polkadot is Acala, which has a large overseas followings.

If you can’t do well on Acala, you can’t do well on any other parachain, for Acala has the most valuable lending program.

Let’s take a look at Amara’s products bit by bit.

1. Mainstream Assets Lending

The mainstream assets lending, in fact, is no different from lending on other platforms. The difference is that the experience of Polkadot Network Platform may be much friendly.

There should be no problem with the seamless flow of Polkadot’s internal assets, but refer to the external assets, such as the Ethereum network, which requires a cross-chain bridge solution. Acala itself will provide a cross-chain solution in the future, and Amara itself will be involved in the development of a cross-chain solution.

From this point of view, Amara’s technical team is quite powerful, and it is not a project can be done by an ordinary team, which deserves all the attention.

To invest a project, whose technology is not necessarily the best force, but at least qualified.

2. Long Tail Assets Lending

Long tail assets refer to a high-quality small currency. In the round of bull market, the whole value turned over 6 times, and the small currency dozens of times.

If you want to retain both mainstream assets and dividends in high-quality small currencies, lending on long-tail assets is a good way to go.

Why don’t AAVE and Compound do long-tail assets?

I have also thought about this question, because the nature of high-quality small currencies determines that their small dispersion characteristics, and the performance of Ethereum will restrict the lending of small currencies. In addition, AAVE and Compound, have done good job in the main assets lending, there is no need to risk small currency lending.

Because of this, Amara has the opportunity to stand out.

In the white paper, the introduction of long-tail assets lending is noticeably more extensive.

1. Long tail assets lending is separated from mainstream assets lending in terms of assets, which can reduce the overall risk of the platform.

2. There are two forms of lending of long-tail assets: one is lending small currency against mainstream assets, and the other is lending small currency against small currency.

3. In the future, NFT will be introduced as collateral for lending.

These points are good, but need time to test.

However, there are some challenges, such as the latest Venus platform, hackers mortgage high-quality assets, and then sell them at a profit, by controlling small currencies, which is also a wake-up call for Amara.

Amara also sets a number of red lines in terms of security mechanism, you can’t borrow as much as you want.

We’ll talk about that later.

3. Long Tail Assets Evaluation Model

To be honest, the evaluation model of the long tail asset has been a very subjective thing.

Therefore, Amara conceptually puts forward three dimensions to evaluate the long-tail assets in the market, and puts forward a series of evaluation indicators, which are relatively detailed.

In fact, from personal perspective, just put on what is hot.

First of all, the market value of long-tail assets must reach a certain level. The larger the market value, the less likely it is to be manipulated. Secondly, users can vote to choose the hot assets in the market with MARA.

Amara proposed these indicators, how to code, how to contract, there is still a lot to discuss later.

4. Farming

It means mining. There will be three ways to mine on the Amara platform, namely Staking, lending, and LP liquid mining.

5. Derivatives

I feel that it is good enough if Amara can do a good job in the loan on Polkadot.

As for financial derivatives, that’s what Amara needs to do after gaining a firm foothold on the track.

So, these financial derivatives are just for reference.

6. NFT

Compared to the rest of the content, this part is quite attractive.

· NFT mortgage lending.

The NFT is too bubbly and illiquid now. For the top-tier NFT assets, especially the hard assets that are approved by crypto geeks, can be very valuable. They would be hopefully, once the market develops.

· Issuing Genesis NFT assets.

You must grab the Genesis NFT assets, which can be a big gift in the future. See Acala NFT asset for details. The rewards are also very generous.