What is Amara — a preliminary introduction from an Amara fans

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

In the past few days, I have analyzed Amara’s whitepaper on Github. I hope to briefly introduce what Amara is from my personal perspective.

First, let’s have a look at Amara whitepaper：https://github.com/AmaraFinance/Amara-White-Paper/blob/main/AmaraFinanceWhitepaperv0.9.pdf

1.Amara is a multi-chain assets lending protocol within the Polkadot ecosystem, focusing on open, privacy preserved, multi-chain lending markets.

Analyze:
Looking at this sentence alone, there is nothing different in Amara from AAVE and Componnd on Ethereum, and Venus on BSC.

2.Amara seamlessly connects mainstream digital assets and top rated long tail assets that improves overall liquidity and expand the DeFi horizon.

Analyze:
Long tail assets lending is a feature of Amara, for there are not many long-tail assets on the market.

Judging from the growth logic of this bull market, the major DeFi small currencies such as AAVE, MATIC, MANA, FLOW, etc. have achieved good gains. If users hold mainstream assets such as BTC, ETH, USDT, etc., they want to buy these second-tier blue chip assets. He would have to sell some of his mainstream assets in exchange for the small currencies.

For those who do not want to sell mainstream assets, but also want to obtain these small currencies with high-performing. There is a real need for Amara’s long-tail assets.

Of course, the challenges are huge, and the price volatility of long-tail assets will be even greater. And the requirements for security mechanism settings will be higher, which is why AAVE, Compound, etc. have not made long-tail assets.

3. 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.

Analyze:
For Amara to have a competitive advantage, it is not enough to support Polkadot’s hot assets. Cross-chain is a necessity, which is not something that every team can handle. From this inference, Amara’s technical team is very powerful.

So cross-chain will also become a bright spot for Amara.

To sum up, with these three points, we can understand why Amara is a multi-chain assets lending protocol within the Polkadot ecosystem.