Phased Execution Path
As Amulet grows and reaches its key milestones, the following initiatives will commence:
Project Initiation – Limited underwriting with with greater emphasis on investments to bootstrap treasury pool assets. Cover products will be offered on a limited basis for specified protocols at this stage. This will continue until the Treasury Pool reaches critical mass and its income-generating potential stabilizes. Early $AMT lockers will receive special rewards.
Treasury Pool Critical Mass – Size of claims reserve and associated collateralized future revenues (i.e., YBC) is sufficient to withstand economic shocks as defined by Solvency II standards. Accelerated distribution of investment and other treasury income will commence while rewards for locked $AMT will begin to reduce.
Growth Phase – Projected and actual loss ratios monitored to track performance and execute on improvements so that the protocol can better withstand economic shocks. Emphasis on the continued acceleration of treasury income while $AMT emissions are throttled. Leverage on underwriting capital can be increased to generate new business and underwrite larger covers.
Hypergrowth And Beyond – Defined as the point when cover purchasers and regular treasury income can withstand incoming claims without the need to draw on capital tranches. Treasury $AMT buyback operations can help increase capital staked, thereby allowing for greater cover capacity, which in turn generates more cover payments and leads to further treasury growth and value accrual.
Last updated