$aUWT
$aUWT is Amulet's synthetic underwriting token. It is minted and backed by select liquid staking pool tokens on Solana, such as $amtSOL, $mSOL, $stSOL, etc. To get $aUWT, a user can stake his or her $SOL derivative(s) in Amulet's underwiting pool, purchase $aUWT from an exchange, or receive $aUWT as payout from the user's successful claim. Users who stake their $aUWT in the underwriting pool are entitled to a portion of Amulet’s cover sales revenue.
Token address: AuwfyqNG9bfVVSxwUrpVoVyoGftxcGSHuWxGG6YAngSC
$aUWT Price
The price of $aUWT is calculated as follows:
where
$derSol_i = Protocol supported $SOL derivative (e.g: $amtSOL, $mSOL, etc.)
\mathit{PRICE}_\mathit{$derSol_i} = Market price of supported $SOL derivative
\mathit{VOLUME}_\mathit{$derSol_i} = Volume of each $SOL derivative staked on Amulet
\mathit{SUPPLY}_\mathit{$aUWT} = Total mint supply of $aUWT token
\mathit{DEBT}_\mathit{$aUWT} = Mint supply when there is any claim request to resolve
Revenue Sharing Scheme
Basic Revenue Sharing Scheme
All holders of $aUWT, including but not limited to those who:
staked $SOL and $SOL derivatives in the underwriting pool
bought $aUWT from an exchange
received $aUWT as claim payout
will be eligible for Amulet's Basic Revenue Sharing Scheme. Part of the income from cover sales will be automatically and periodically distributed to the underwriting pool as explained above. The said income distribution together with PoS returns will help boost the price of $aUWT, which can be used to redeem for more $SOL derivatives.
Advanced Revenue Sharing Scheme
The Advanced revenue Sharing Scheme enables $aUWT holders to earn higher returns in exchange for providing underwriting capacity by staking their $aUWT in Amulet's individual product underwriting pools. The returns include higher yields from cover payments, additional token rewards issued by covered protocols participating in Amulet's Cover Acceleration Program ("CAP"), and $AMT rewards. Therefore, user's may expect to receive more $aUWT upon unstaking their $aUWT from an individual product underwriting pool.
Assets staked under this section may be temporarily locked on the onset of a claimable risk event to ensure that in the event there is insufficient PCR to cover claim payouts, there will still be funds available to settle outstanding claims.
Yield Backed Claims
Amulet can mint $aUWT debt backed by the protocol's near-term future yields to make claim payouts. The debt is not expected to have a direct dollar value impact, thus holders will be able to redeem $aUWT at the same price. Near-term future yields taken into consideration to finance the debt include:
$SOL token investment strategy and PoS cluster block rewards.
Amulet's cover sale revenue.
Other token investment strategies (to be developed together with Amulet's partners).
$aUWT's value is pegged to $SOL. Users can redeem their $aUWT for a supported $SOL derivative. $aUWT will maintain its peg with $SOL so long as its underlying assets also maintain their peg with $SOL. The more variants of derivative $SOL supported by Amulet underpinning $aUWT, the more stable the price of $aUWT.
$aUWT Liquidity
Amulet will make available several options for $aUWT holders to redeem their $aUWT for $SOL derivatives:
1. External Liquidity Pool
Two-sided liquidity pools between $aUWT and other $SOL derivatives (e.g., $aUWT-$amtSOL, $aUWT-$mSOL, etc.) which allows anyone to swap their $aUWT for a $SOL derivative. Liquidity mining programs on partner protocols will be used to attract and increase liquidity for these trading pairs.
2. Amulet's Liquidity Pool
Amulet will maintain a group of single-sided $SOL derivative pools for easy $aUWT redemption. Users will have the option of delayed unstaking (no fee charge), or instant unstaking (small fee charged). Fees will be distributed to liquidity providers.
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