Introducing Ambit Finance
In November 2022, we founded Ambit Money with the goal of realizing our ultimate vision of a decentralized stablecoin backed by $USDT and designed to generate organic and sustainable yields. This vision was shaped by our experiences at Anchor Protocol, which at its peak was the third largest DeFi protocol by TVL.
Armed with the founder-market fit gained from these experiences, we successfully raised our seed round from Binance Labs in December 2022. The strategic investment from Binance gave us unprecedented access to the Binance ecosystem (including Binance Labs, Binance Research, and BNB Chain), where to this day we continue to leverage their guidance and expertise in our day-to-day operations.
Following a year of focused product development, we are now thrilled to introduce Ambit — and present our vision of the foremost decentralized cross-chain stablecoin, backed by $USDT and designed to generate organic and sustainable yields.
Introducing Ambit Finance
Ambit’s flagship product, Ambit Finance, is a lending market protocol that will first be on BNB Chain — with Lenders and Borrowers as central participants within the protocol, mainly interacting with the Ambit Finance $USDT Vault to mint $AUSD.
$AUSD is a crypto-collateralized stablecoin backed by at least 1 $USDT — and with yield generated from lending interest on the lending market. Ambit Finance’s user interface also mirrors design principles of Web2 fintech products, emphasizing our commitment to deliver a superior fintech experience for users.
Lenders and Borrowers
Lenders on Ambit Finance deposit $USDT into the Ambit Finance $USDT Vault to mint $AUSD. $AUSD is a tokenized representation of the user’s share of the Ambit Finance $USDT Vault — with the backing of 1 $AUSD increasing over time from lending interest received.
Borrowers on Ambit Finance can borrow $USDT from the Ambit Finance $USDT Vault. To do so, the user must first deposit a whitelisted asset (i.e. $WBTC, $WETH, $BNB) into their Ambit Finance portfolio — with the maximum borrowable amount of $USDT based on a collateralization ratio. Portfolio positions can be used as collateral to borrow more $USDT, enabling looping. Ambit Finance will also enable users to do a loop or unloop strategy in one-click directly via the Ambit Finance user interface.
Interest Rate Model
The lending market utilizes a dynamic interest rate model, with interest rates based on the utilization of the Ambit Finance $USDT Vault. Lenders receive lending interest for lending $USDT (via $AUSD), while Borrowers pay borrowing interest for borrowing $USDT.
Protocol Safety & Security
Acknowledging the occurrence of several exploits in other DeFi protocols, security and safety are at the heart of Ambit Finance’s products. To mitigate protocol risk, Ambit Finance will employ an isolated collateral mechanism — where whitelisted assets deposited into the protocol will not be used for borrowing. Furthermore, Ambit Finance has also completed two comprehensive audits from Paladin and Guardian — of which the audit reports will be available to the public soon.
Revealing $AMBT
Deep liquidity is essential to ensure a functioning lending market, which serves as the core of $AUSD. We thus believe that the introduction of $AMBT will play a crucial role in bootstrapping liquidity within the Ambit ecosystem — and to also help Ambit achieve its long-term objectives of decentralization and governance. More information on $AMBT will be released to the public in due time.
The Ambit Finance Incentivized Alpha & Rewards
Through the Ambit Incentivized Alpha, we aim to accomplish several objectives:
- Offer Early Access: Provide an early-access version of Ambit USD while collecting product feedback from the community to optimize our products further.
- Bootstrap TVL: Recognizing the role of deep liquidity for a cross-chain stablecoin, we aim to aggressively bootstrap TVL through the Ambit Incentivized Alpha.
- Incentivization with $AMBT: In exchange for providing liquidity to the Ambit ecosystem, we plan to distribute a portion of $AMBT through an airdrop.
There are a number of activities that can be undertaken to become eligible for $AMBT rewards:
- Depositing $USDT into the Ambit Finance $USDT Vault to mint $AUSD.
- Depositing whitelisted assets ($i.e. $WBTC, $WETH, $BNB) into their Ambit Finance portfolio.
- One-click looping via the Ambit Finance user interface to leverage up.
To bootstrap borrowing demand, the Ambit Incentivized Alpha will also have fixed introductory borrowing interest rates — which will incentivize users to utilize $AUSD in other parts of the Ambit ecosystem to generate further yields.
