$4.2b in crypto was stolen from Defi last year. How can you protect yourself and not lose money in #Defi ?

Many dApps rush to market without being audited, and in 99% of cases there is a vulnerability in the code and other flaws. This results in loss of customer assets.

Regardless of the professionalism of developers, the risks of bugs and holes in the code are always present. Therefore, smart contracts will be constantly under attack and the risk in Defi will be present all the time.

First of all, you need to check the Defi service by basic criteria 👇

- Project team. If the names have a bad reputation or are involved in fraudulent transactions, it is not worth taking a risk.

- Period of presence in the market. Projects that have been in existence for less than a year have a high-risk status.

- If you have an audit report, it is also worth finding out about the company that did the report. If the audit is done by two different companies, this will minimize the risks as much as possible.

But even these precautions do not guarantee the safety of your money. A smart contract can still have an error and a loophole for attackers.

This is why the insurance sector has huge potential in #web3. There are very few projects that can provide quality coverage for assets. One such project is Anulet Protocol.

Amulet Protocol provides simple and reliable coverage for everyone in web3. Built for Rust ecosystems, starting with the #Solana blockchain. The Protocol offers coverage products that provide users with a reliable way to hedge a variety of risks.

Coverages have already been implemented to hedge the risks associated with smart contract vulnerabilities, as well as depeg cover for $USDC and $USDT stablecoins.

Smart contract vulnerability coverage extends to:

— malfunction or programming flaw; or

— unauthorized, malicious, criminal attacks, hacks or exploits of any malfunction or programming flaw

Amulet DePeg Cover — protects the users from volatility of tied assets. In the event of asset depeg, the cover users receive compensation.

Amulet Protocol studied user experience and past underwriting models and created a new approach to underwriting risk in Web3.

Amulet Protocol — Decentralized risk protection protocol deployed on the #Solana blockchain. The main function of the project is to provide simple and reliable coverage for everyone in #web3

And the Protocol does a great job with that. It has implemented risk coverage for smart contracts vulnerability and depegging of stablecoins. Other types of coverage for NFTs, wallets and metaverse are under development.

But the project is not limited to coverage only. The model of underwriting and claims allows users to take an active part in the formation of insurance pools and storages while earning their own income. So, for example, users can make #Staking in one of 14 available protocols and get #APY of 18–22%.

And thanks to the new TNT Vault product, it is now possible to act as an underwriter in covering the risks of depeg stablecoin. Profit for a few days can reach more than 10%, as it was recently. It should not be forgotten that the underwriter assumes the risks in case of a depeg and trigger price.

Underwriting

By providing protection and tools for earning money the project also strives to develop a competent community. Bounty program AmuNation v2 aims to rally around the project the most loyal users and generously reward them for their contribution to the development of the project. So monthly users get valuable #NFT and $USDC as a reward for simple actions, but very useful for the project.

In addition to the bounty program users can realize themselves from the creative side and contribute to the development of the project through content and attendance at discord events of the project. And for active participation they grow up the career ladder and get appropriate roles from Contributor to paid role of Ambassador

Thus Amulet includes: an innovative product that can provide protection in web3, tools to earn money and an incredible community that supports the project.

You can become part of this community.

We are hearing more and more about #web3, the third-generation Internet concept, and the transition from web2 to web3 seems inevitable. Being in the era of web2, where our data is stored on centralized platforms, we cannot feel safe, unlike web3, where we can find decentralization and privacy.

Decentralized databases for us provide blockchain with its cryptocurrency and technology. The harsh reality is that the web3 ecosystem is now an unstable and risky environment for all of us.

Accordingly, for web3 to continue to evolve, players who can provide us with protection and insurance must come to the forefront. This will allow us to master web3 painlessly, give new impetus to #Defi and lead to an environment where our data is safe.

My attention was caught by the Amulet Protocol project with its new approach to risk protection for web3. Amulet Protocol is a decentralized Rust-based insurance protocol, starting with but not limited to the Solana #blockchain. The project creates the risk protection industry’s first approach by solving the problem of resilience in risk underwriting and claiming. By changing the approach to a model that used underwriters’ capital to pay claims, Amulet has decided to build on protocol-controlled reserves (“PCR”), which will build reserves and implement a claims structure that includes a unique Yield Backed Claim (“YBC”) method

The amulet provides a combination of two elements to solve existing problems in risk coverage:

Underwriting Mining: Underwriting capital provided by underwriters.

Protocol Controlled Reserves: Reserves to protect underwriters’ capital.

So the project solves the uncertain risk of claim payments. Initially the assets placed in the underwriting mining pool will be used in a conservative way. And in the future, as the protocol generates more and more capital through coverage payments, return on investment, etc., and PCR builds up, the use of underwriter capital will be minimized.

There is a tranche built into the claims payment structure, it is secured by future income and is called the Yield Backed Claim (“YBC”) I wrote about above. I would like to note that in addition to insuring the protocols and risks of individual users, PCR will be used for income-producing investments for AMT holders and $SOL stackers. Eventually #TVL will increase steadily with minimal loss of capital.

As we see it, the project provides a new model for protecting its users and this model has the potential to scale sustainably.

Amulet already provides risk coverage: Smart contract vulnerability exploits, Stablecoin de-pegs, Slashing Risk coverage on NFT, Metaverse and Wallets is also in development. A feature to cancel coverage will appear in the app in the near future.

In addition to risk protection, the project offers other products and services:

Staking:

Users can use aUWT token to provide liquidity to the underwriting pool with a fairly high APY of 20%. Users can also make POS #Staking on Solana, for which they will also be rewarded.

Another product where you can make money is Liquidity Mining. Users can supply liquidity to earn transaction fees from these pools.

Amulet continues to actively develop and is constantly working behind the scenes on new products and technology. Here are some of them:

Ongoing MainNet development — app.amulet.org

Ongoing development on Personal Dashboard with public release pending final stages

Ongoing website development

Ongoing SEO development

Ongoing discussions with the Solana team

Ongoing discussions with investors Ongoing discussions with security partners

Ongoing AmuNation app work — major upgrade expected this week!

Ongoing Ambassador Program work Ongoing NFT development

Ongoing Tokenomics background work

Ongoing dialogue with CER Live to list new protocols

Ongoing work for upcoming new product Audit work being undertaken for upcoming new product

Audit work being undertaken for upcoming new product

As you can see AmuletProtocol provides an innovative tool for protection in web3 and is constantly being improved. By having simple and reliable insurance, our risks can be minimized. And as the Defi market develops, the demand for insurance and risk hedging will grow. That’s why I think Amulet Protocol and their product will have a bright future and our assets will remain protected.

An important factor in the development of Amulet is the community, which actively supports the project. Already launched the Ambassador program and just recently launched AmuNation v2 Bounty program with revards in the form of and $USDT. By completing simple tasks the participants get AmuPoints that reflect their place in the leaderboard and get the appropriate rewards.

In March, we witnessed #USDC depeg following the unexpected closure of Silicon Valley Bank. The thing is that the issuer of the stablecoin — Circle kept $3.3 billion assets in the bank. The company’s reserves decreased and USDC lost parity 1:1.

The liquidity outflow started. The situation created strong negativity around other stablecoins. The domino principle worked. A significant part of their collateral came from USDC. For example, #DAI by 48% was secured by USDC.

Then people started to get rid of $USDC at an unfavorable rate and the situation may repeat itself. That is why Amulet Protocol has launched a new product to cover the risks of depeg stablecoins.

Amulet Protocol — simple, reliable #cover for everyone in web3 and already provides smart contract vulnerability cover.

And now provides coverage for depeg stablecoins.

Two functions added:

Purchase cover to protect against a depeg.

Stake to provide capacity for depeg cover.

TNT Vaults: Amulet simplified trading platform for risk trading

When purchasing covers, users deposit their USDC or $USDT into a vault where the assets will be protected. In case of depeg stablecoin and triggering of the trigger price, the user receives a trigger payout.

Purchase DePeg Cover

Underwrite — allows users to #Stake their assets in the vault, thereby taking the risk in the event of a price trigger or receive a payout without triggering a trigger.

Underwrite DePeg Cover

Once all prices are agreed upon between payments and underwriting capital (deposited in a separate vault), the vaults are slammed. Funds are released when coverage expires or when a depricing event is triggered.

If a #Stablecoin depeg occurs buyers will be paid their covered losses. If the coverage expires without triggering, underwriters will be paid their premiums.

So far, depeg coverage has been released for two stablecoins: USDC and USDT. The vaults have been audited by FYEO and are already available here 👇https://app.amulet.org/#/vault/trade