We are currently witnessing unmatched growth in use-cases, crypto adoption, and blockchain networks as more and more people around the globe are getting comfortable with using web3 applications in their daily endeavors. Organizations are seizing this opportunity to take part in the emerging web3 ecosystem by deploying compelling projects that transform the existing products and services into blockchain-enabled offerings.
With these unending pools of flowing data, there is value to be accrued by the start-ups, corporations, and institutions that tap the potential of web3. An emerging gamechanger poised to revamp the DeFi sphere is Amulet – the first decentralized insurance protocol for rust-based ecosystems. Running on the Solana network, they come in with their simple and reliable insurance offering for web3.
Decentralized insurance firms are crucial to the integration of blockchain technology as they provide a safety net for the DeFi ecosystem. There are multiple approaches insurance projects can focus on such as smart contract vulnerability or even stablecoin depeg insurance with the end results being, giving users peace of mind knowing that their assets are protected in case of a bug or hack.
Amulet’s Commendable Start
In their first funding round, Amulet successfully raised $6m, with gumi Cryptos Capital leading the seed round. Other notable participants that made this venture a success included Republic Capital, Solana Ventures, DeFiance Capital, Animoca Brands, UOB and Signum Ventures, Mirana Ventures, NGC, Longhash, Signum, SevenX Ventures, Digital Strategies, CMT Digital, Matrixport Ventures, a41 Ventures, Solar Ecofund, Daedalus Angels, Cobo Wallet, Re7 Capital, NetZero Capital and a few ecosystem partners such as Serum and Acala Network amongst others.
A successful seed funding round means that Amulet can grow organically and mark some achievements as they look to launch their servies in the summer.. A growth curve characterized by a seed funding round translates to a higher trust in the organization and a larger partner following for Series A funding.
The project is the pioneer insurance protocol on the Solana network. Transparency and trustlessness are the main variables of decentralized networks, creating uncharted territories for protocols such as Amulet to come in and provide investor protection and confidence.
This is a commendable start for the Amulet protocol with its successful seed funding round and they will be the first insurance protocol on the Solana blockchain. The adage goes that a journey of a thousand miles starts with a single step, and Amulet has started their thousand-mile journey with an unmatched pace that others can only envy.
Refurbishing DeFi Insurance
Over the past few years, DeFi has emerged as one of the most popular use cases in crypto through its potential to make financial applications more open and accessible.
Amulet is revamping the DeFi insurance arena by developing a solution that addresses the clash between underwriting capital stakers and cover buyers. At its core is the Protocol Controlled Underwriting Value (PCUV) which provides a paradigm shift for DeFi insurance towards a scalable and sustainable future.
The changes provided by Amulet in the DeFi insurance arena ensure that users can secure blockchain tech through liquid staking and insurance participation – all this is made possible by one protocol. With the immutable nature of on-chain data, data transfers and transactions have finality. This means that we need DeFi insurance protocols such as Amulet that provide a reprieve to the tight margins of error that come with managing blockchain data.
Amulet’s Journey Going Forward
Amulet is expected to follow in the steps of the leading decentralized insurance protocols by offering coverage on smart contract risk, stable-coin de-peg risk, slashing risk, and more as a start. The advent of the metaverse provides a unique opportunity for Amulet to serve as a major building block and foundation in this virtual world of infinite potential and possibilities. Some metaverse-related insurance products to expect from Amulet include:
- GameFi asset insurance
- NFT asset insurance
- Cyber Security insurance
- Metaverse Life insurance
- Virtual property insurance
Amulet is breathing fresh air onto the decentralized insurance arena with its transparency and democratization of insurance providing substantial improvements over the greed seen by other companies in DeFi insurance. As the Amulet protocol keeps growing, we look forward to them expanding their product range and creating more intriguing opportunities to address other underserved markets within the cryptosphere as they are doing with DeFi and the metaverse.
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Disclaimer: The opinion expressed in this chart solely author’s. It does not interpreted as investment advice. TheNewsCrypto team encourages all to do their own research before investing.
