Amplify Protocol aims to reduce the multi-trillion dollar trade financing gap — by resourcing DeFi Liquidity
$AMPT token could see meteoric gains!
Amplify — and the AMPT Protocol are rolling out a next generation defi platform that uses open source, decentralized innovation, to address one of humanity’s most pressing economic challenges.
Global Economic Crisis 📉
Covid-19 and the lingering pandemic have had unprecedented consequences for nearly all of humanity; While most of us probably view the event primarily as a health crisis, it was and still is, an equally devastating economic crisis. The effects of which continue to persist in many areas around the world.
In terms of the economic detriment, small-to-medium sized enterprises or SME’s, were hit the hardest. This is especially true of those that originate and/or operate in developing nations. The fragile economies in the Developing World were struggling long before the pandemic began. The outbreak has only further exacerbated the poor economic conditions. The closing of most international borders led to a paralysis of trade/commerce. Shortly after, many foreign investors pulled back their funding. Without a steady stream of foreign investment to rely on, most SME’s were left with no feasible alternatives to pursue in order to finance their export and trade operations.
TradeFi Deficit Skyrockets 🚀
From 2020 to 2021, the gap in trade finance continued it’s trend of parabolic year-to-year growth. The most recent estimate by the World Economic Forum Agenda put the figure at a staggering 1.5 Trillion dollars. By 2025 it’s estimated to reach between 2.5 — 3.4 Trillion.
Financial support from the Central Banks has been woefully insufficient and over 50% of the businesses whom applied for financing — were rejected. This failure further illustrates one of the many limitations and failures of our centralized banking system and highlights the need for change.
This is exactly why Amplify developed the AMPT Protocol; a critically necessary solution to the skyrocketing deficit of financing business operations around the planet.
📍 Solution
Our team has developed a next generation defi platform to address this deficit and to improve access to financial services for those whom are left underserved and underbanked by the biased and prejudiced system of today.
With the AMPT protocol, crypto hodlers and defi investors can add liquidity to a number of digital asset pools to earn passive income & sustainable returns on their stablecoins or crypto assets.
These same liquidity pools also serve as the financing mechanism for KYC qualified and vetted, supply chain manufacturers and SME’s. Collateralization can be achieved via tokenized physical assets such as land, vehicles, or goods. Alternatively, collateralization can be fulfilled through invoice factoring and the tokenization of sale orders which will later be paid back into the pool.
Amplify does not require KYC from individual liquidity providers and anyone is free to earn high-yield interest on their digital assets by providing liquidity to the platform.
The scope of the problem is too far-reaching to be resolved by any one entity. Any meaningful solution will require a collaborative effort. To formidably address the task, Amplify is building an ecosystem of partnerships across the board. The application process for partnership includes intensive reviews of applicant’s business and financial health, to ensure appropriate creditworthiness.
AMPT Protocol Improves TradeFI
- Reduced barriers to entry
- Easier access to liquidity and funding,
- Tokenization of RWA's to serve as collateral.
- Lightning fast process with no paperwork
- Existing RWA’s act as collateral and risk mitigators.
- Removing most of the risk by monitoring shipments through sensors (IoT)
- Sharing of physical and financial data via secure technology
- Lower risks, increased trust
- Fewer parties involved
- No need for a trusted authority
- More democratic, inclusive system — especially for SMEs
