OIG AMA with Amara Finance
Amara is a multi-chain DeFi2.0 protocol deployed for the future blockchain system.
Spicey | OIG:
Hello OIG Family and welcome back to another amazing episode in our ⭐️AMA series⭐️. joining us today we have AMARA FINANCE, a cross-chain financial aggregator for NextDeFi to be the DeFi collaboration centre to bridge Polkadot and the off-DOT world!! And here to tell us about it is Rachel, the ambassador of AMARA Finance. Welcome Rachel It’s a pleasure to have you here with us today! @RachelGoGoGo
Rachel: hello friends from OGI community~
I am happy to be here today
Spicey | OIG: There is definitely a lot to cover with such an incredible project such as AMARA Finance!! could you start with who you are and summary of what AMARA Finance is? What void does it aim to fill? @RachelGoGoGo
Rachel: yeah, I am Rachel, an ambassador at Amara.
Amara Finance is a cross-chain financial aggregator for NextDeFi aiming to be the DeFi collaboration center.
Amara has three core products, AmaraLend, AmaraLink and AmaraPay.
AmaraLend is a lending protocol about LP liquidity.
AmaraLink is a multisig cross-chain bridge based on Chainsafe.
AmaraPay is a global payment gateway protocol.
It is known that Amara Finance belongs to Polkadot ecosystem, but Amara also has the desire for multi-chain deployment.
Amara’s aim is not only finding a position on Polkadot, but also introducing more assets and users into Polkadot and becoming a multi-chain DeFi collaboration center.
We believe crossing chains will be a must in the future DeFi scenarios with the rise of applied public chains.
Ethereum used to outshine others in the past, but now excellent chains like BSC, Solana, Polygon, Avalanche and other public chains perform well in the market, which generates the demand for cross-chain transactions.
Also, we think LP is a huge market, we want to introduce a product to release full LP liquidity and help LP holders get higher APY.
Spicey | OIG:
I for one am definitely in desperate need for AmaraPay and having AmaraLend & AmaraLink to support a global payment gateway means AMARA truly understands the fundamental requirements that this space is in desperate need of!!
Rachel: that’s the aim of this project
Spicey | OIG: It seems that there is an epic race in the DeFi world to implement the best lending protocol for users, could you outline key features of AmaraLend and how it differentiates its self among the competition? @RachelGoGoGo
Rachel: I‘d love to.
the most important function of AmaraLend is to release the LP liquidity.
I will explain more about it.
we are working on DeFi 2.0, which mainly refers to AmaraLend v2.
AmaraLend v2 is Amara’s most creative product.
There are many lending projects in the market
people are keen on imitating and copying projects but few to create because innovation requires great investment of money, time and energy.
AmaraLend has upgraded several times, and finally found its own place in the DeFi world.
At first, AmaraLend’s design was very simple, just to be a multi-chain deployment lending platform focusing on long tail assets.
Let’s call it AmaraLend v1.
It’s just an ordinary lending product with not much innovation.
Therefore, Amara team decided to innovate it.
After heated discussion, as well as adopting investor’s suggestions, AmaraLend v2 model came out finally.
AmaraLend v2 is an innovative product. You can see the graphic below.
To sum up, AmaraLend is to release the liquidity of LP.
Compared to other similar products, AmaraLend v2 has 4 advantages.
multi-chain deployed, needs LP token as the guaranty, can lend stablecoin (besides the mainstream stablecoin, it also accepts others) and will release our own stablecoin USDA.
If you want to learn more about AmaraLend v2, please read the article https://mirror.xyz/0x540f582115209Dce1475FadBa786ab7a5B9c989D/T8kpo6j5UYFdV0cdQASLiKheCCjwTEl8UUfuGNV_ksc
You are welcome to communicate with our head of economic research on twitter.
Spicey | OIG: You can really tell that ALOT of planning and innovation went into designing this product. It provides such a robust feature and to see it grow from what it was to what it is now is truly spectacular!!
Rachel: thank you~
Spicey | OIG: You have explained one of the three fundamental aspects of AMARA and you also touched on another one briefly but could you go into more detail about AmaraLink and how this will be a monumental feature? @RachelGoGoGo
Rachel: sure, thank you for your concern about AmaraLink.
We believe that crossing chains will be a must in the future DeFi scenarios and AmaraLink will meet the demand for cross-chain transactions.
Many people joke with us that AmaraLink is like an independent project.
And AmaraLink has the highest exposure and got the most awards among all Amara products.
In May 2021, AmaraLink received Polygon grant.
In October 2021, AmaraLink gained the third place in Wanxiang Hackathon for 2021 and was recognized as the most potential developer by Moonbeam.
AmaraLink is to support AmaraLend by realizing the cross-chain function that fully meets the needs of the actual production.
How to achieve it?
Simply speaking, two contracts of one asset will be deployed on two target chains A and B.
After depositing the asset into the contract on chain A, the contract on chain A confirms and locks the asset.
Receiving the news, the contact on chain B maps the corresponding asset which is also valuable and recognized by chain B.
Therefore, it’s not a real asset transfer but a mapping in another chain. This is how AmaraLink works.
According to AmaraLink’s development schedule, it will be launched in February, 2022 and will connect two ecosystems of Polygon and BSC, realizing the cross-chain transfer of “specific assets” between Moonriver and Polygon, BSC.
AmaraLink will be deployed on other public chains such as Solana and Harmony based on the progress after its launch.
Spicey | OIG: That’s is incredible!! Amara definitely uses a unique approach to enabling cross-chain manoeuvrability. and to receive such recognition from the likes of moonbeam really shows that the space acknowledges the work that Amara is doing 🚀🚀
I’m sure many can relate when I say, “that is all impressive but seems very technical to me, i just want to make Payments!!!!” AmaraPay aims to deliver this, how far along are you in the development of AmaraPay?
Rachel: AmaraPay, yeah, it is more like a future product, but it is not far away from us.
I want to review AmaraLend and AmaraLink before introducing AmaraPay.
AmaraLend is the most important among the three core products.
It is a lending protocol about LP liquidity, which can not only help users achieve higher APY, but also lend USDA(stablecoin under Amara algorithm) by staking LP to fully release LP liquidity.
AmaraLink is a multisig cross-chain bridge developed by ourselves, which achieves the cross-chain transfer of specific assets between Moonriver and Polygon, BSC.
It will become the entrance for users to Polkadot ecosystem.
and AmaraPay is a global payment protocol, which is an important supplement to Amara ecosystem.
now you can understand the relationship among the three products.
AmaraPay’s launch will bear significantly on users.
If you are a user in a compliance area, you can
1 buy crypto assets with legal currency in ease and compliance
2 apply for real asset cards or virtual cards to manage crypto assets
3 achieve offline payment by the crypto assets real-time price in most countries and regions around the world
It can be said that AmaraPay will open up the boundary between traditional finance and blockchain finance.
In the future, crypto assets will be more closely related to our real life.
We will use it in our daily lives, not just the speculation in the secondary market.
AmaraPay has lower priority compared to AmaraLend and AmaraLink so its development will start after the other two products are completed.
Spicey | OIG: YES!! This is the goal we love that Amara sees this. It seems that Amara really has their finger on the pulse of this industry and is at the leading edge of development!!
You touched on the LP system earlier could you dive into a little more detail for the OIG community with us today and how LP Minting Stablecoin will work? @RachelGoGoGo
Rachel: Good question.
In the DeFi field, interest-bearing assets like LP are huge in scale, but are called sleeping assets because there is no suitable “place” for them.
For general mining users, LP will be locked on DEX after yield farming, which makes the capital utilization rate of LP assets not high.
In AmaraLend v2, users can deposit LP to autocompound module, this is very special in AmaraLend.
It has two advantages for users.
Firstly, Amara will help users gain higher APY by putting LP to DEX automatically, getting mining reward and autocompounding the reward.
Secondly, after depositing LP, users can borrow USDA, stablecoin under Amara algorithm, by staking LP besides autocompound, which creatively releases LP liquidity.
Of course, USDA can be put into the recycling model to get more benefits.
For detailed technology doc of AmaraLend v2, pls refer to our WIki: https://amara.gitbook.io/amara-finance/amara-v2-doc
Spicey | OIG: This is EPIC!! By creating an autonomous experience the user can have the benefit of a higher APY without the hassle. Incredible!!
With such a pronounced user experience already in the works at Amara, I would expect no less from the native token. Could you explain the $MARA token’s function, what sort of incentives are in place for users to buy and hold it?
Rachel: yeah, of course.
MARA is the decentralized governance tokens of AmaraLend.
Users around the world can join the governance of AmaraLend by holding MARA.
Amara team seeks a decentralized governance way like DAO, aiming to build an excellent infrastructure for DeFi 2.0 with the efforts of all MARA holders.
MARA can be used for
1 MARA holders can vote online for the LP lending market. After learning information of related assets, MARA holders can vote if the lending market of corresponding assets should be open.
2 Long-term supporters of Amara can be part of the platform governance. They will get service reward which is from the profit of Amara.
So I believe it’s worth holding MARA in the long term.
Spicey | OIG: Amazing!!! Diamond hands always prevail especially if those hands have $MARA in them!!
We now move on to our next segment which is the Twitter Questions. Before the AMA we ask our community to submit their questions. Those that are picked will receive a reward depicted on the AMA announcement.
Community Twitter Questions
Rachel: Thank you for asking this question.
Actually, we don’t think the market will affect Amara too much.
When the market is down, people will focus on value itself but not the growing market bubbles which won’t exist too long.
For Amara, downmarket might be more beneficial because people want to get higher APY by depositing their LP.
Users also can borrow Amara stablecoin USDA.
As for the mechanism, I think I have explained how it works in AmaraLend before. For more information, please read our doc on Wiki or the article by our head of economic research.
Spicey | OIG: Beautiful!
Rachel: Nice question for the community.
We really attach great value to our community, that’s why we have our operation team and started the ambassador program.
Our ambassadors program is a long-term program.
Our local communities are managed by our ambassadors. We want to gather more enthusiasts and talents to build Amara family together and grow with us.
Regarding our idea customer, LP holders are more like our ideal customers since our product AmaraLend v2 is designed to release the liquidity of LP.
For general mining users, their LP will be locked on DEX after yield farming, which makes the capital utilization rate not high. In AmaraLend v2, users can deposit LP to autocompound module to get higer APY and can borrow stablecoin by staking LP.
Oh interesting question.
I think the challenges are consubstantiality, security and LP liquidity.
Just as I said before, there are many lending projects in the market at present, and people are keen on imitating and copying projects but few to create because innovation means risk, high cost and energy investment.
AmaraLend has upgraded several times, and finally found its own place in the DeFi world. I have also introduced AmaraLend v2 in the previous questions.
so for this question, I want to focus on security.
Security is indeed a key issue that all the projects in DeFi have to face. Once there is a problem with safety, the project can be a disaster.
Amara attached great importance to security, and took many pragmatic measures to ensure the security of users’ assets from the very beginning.
First of all, all external DeFi protocol partners involved in AmaraLend must be reliable and time-tested protocols, such as CRV. This is also the reason why AmaraLend v2 finally plans to be deployed on BSC.
Secondly, in terms of mechanism design, AmaraLend introduces an insurance program to prevent bad debts.
Finally, reliable auditing is essential. If necessary, several auditing agencies can be invited to cross-audit the code. Please be assured that all Amara products will be audited before launch.
Spicey | OIG: Superb, answer @RachelGoGoGo, this really showcases the confidence and attention to detail Amara has in their objective!!
Rachel: thank you @Spicey555
Spicey | OIG: That concludes our twitter questions segment.
@RachelGoGoGo I think i speak for all of us when i say we are super excited to witness the growth and future that AMARA will bring. There are just so many ground breaking products and services that you offer that have REAL WORLD applications TODAY!! As we come to the end of our exclusive AMA, could you tell our valued members what are some things you are excited about on your roadmap ahead and where can people go to get anything and EVERYTHING that has to do with AMARA.
Rachel: I‘d love to!
The first thing is about out IDO. We have just finished one on Solarbeam and we will have other two on Synapse and Anypad.
IDO on Synapse will start on 26th Jan.
AmaraLend v2 will start an incentive program for the initial liquidity before launch, which is similar to the parachain slot auction on Polkadot and is also the best opportunity for ordinary users to join Amara.
Amara will launch a Ieo plan in the future. Stay tuned for official news.
You can expect the TVL three months after AmaraLend’s launch. Activating the sleeping assets like LP is significant for users and the industry since LP is huge in the market.
Of course, besides AmaraLend, our other product AmaraLInk will be launched in the first half of the year 2022.
For more information, follow us on:
Spicey | OIG: Amazing!! Well thank you @RachelGoGoGo for your time it was super informative and very intriguing. Can’t wait for more from AMARA. Thank you OIG family for being apart of our exclusive AMA with AMARA. We wish them all the best on their ambitious roadmap and we will continue to support them as we have from the beginning!
Rachel: thank you @Spicey555 , thank you for all attending in the AMA. wish you a good day~