In the Cosmos ecosystem, capital efficiency and user protection in staking and lending mechanisms remain critical challenges. To address these issues, AADAO has awarded a $195,000 grant to fund Amulet, an innovative staking and lending protocol designed to unlock capital and safeguard users.
This grant is aimed at addressing the substantial opportunity for capital optimization within the Cosmos ecosystem. Inspired by Ethereum’s Alchemix protocol, which reached a peak Total Value Locked (TVL) of $886 million with relatively modest yields, Amulet seeks to replicate this success within the Atom Economic Zone (AEZ).
Amulet leverages smart contracts on Neutron and Interchain Accounts to enable ATOM and other token holders to stake and spend assets through self-repaying loans, backed by future staking rewards and farming yields. By enabling yield-farming strategies that involve ATOM-based derivatives and wrapped assets, Amulet aims to significantly enhance capital inflows and improve overall efficiency in the ecosystem.
Grant milestones include releasing an informative three-part series on how it works and establish strategic partnerships to support its efforts. The team will also work on a lockdrop with Eclipse and address legal considerations for a robust protocol launch.
Through this grant, AADAO is able to support a transformative DeFi project that aims to revolutionize capital management and enhance user protection in the Cosmos ecosystem. Amulet’s innovative approach is expected to drive significant growth and capital efficiency within the AEZ.
