Amulet Protocol's Opportunity

DeFi has experienced exponential growth since the summer of 2020 with the influx of hundreds of billions in capital and the emergence of multibillion-dollar protocols in just a little over two years. Riding along this wave of explosive growth is a rapidly increasing demand for risk hedging

Crypto users often suffer losses from various threats, such as smart contract hacks, stablecoin de-pegs, market volatility, etc. In 2021 alone, $3B were lost to smart contract hacks. Among all available risk hedging tools, protection by way of cover has become the most prominent and effective approach to managing these risks.
Although Amulet has seen increased demand for cover products, currently less than 2% of overall DeFi TVL is covered. There is still a large void to be filled by RPPs.

Despite Ethereum and its affiliated EVM (Ethereum Virtual Machine) ecosystems’ dominance in DeFi, other Rust-based public chains are rapidly maturing, spearheaded in particular by Solana. According to Amulet's research, TVL on Solana is growing 5x faster than Ethereum, and this growth is expected to be stronger given the distinctive strengths of Solana centered around its lower cost and higher throughput.

Solana’s rise as a major layer 1 solution promises an alternative realm of possibilities. The broader Rust-based ecosystem is now $30B large. While there has been tremendous ecosystem growth and a large influx of top-tier talent into the space, this growth also invites more risk of attacks and bad actors.

At the moment, risk management solutions are still relatively scarce or non-existent on Solana and the Rust-based space at large, presenting Amulet with an incredible and unique market opportunity. Amulet expects major demand for its cover products and other risk management solutions along with Solana's continued growth and adoption.

https://amulet.org/