Amulet V2 integrates Velodrome’s Liquidity Pools
tl:dr
- Overview of integration with Velodrome
- Benefits of Velodrome Integration
- Step-by-Step User Guide
Overview
We have integrated with Velodrome on Optimism to bring more yield opportunities and protection to its liquidity pools! Initially, this integration will list the following pools as vaults on Amulet V2:
- vAMMV2-WETH/OP (Basic Volatile)
- vAMMV2-OP/USDC (Basic Volatile)
- vAMMV2-WETH/USDC (Basic Volatile)
- vAMMV2-wstETH/WETH (Basic Volatile)
Users who provide liquidity for any of the 4 pools above can stake their LP tokens in Amulet’s 4 respective vaults and immediately enjoy the following:
- 24/7 Built-In Protection by AmuShield for Users who deposit LP tokens from any of the four pools above into their respective vaults
- Auto-compounding of $VELO Rewards
- $AMU Farming Rewards
24/7 Built-In Protection by AmuShield
Using vAMMV2-WETH/OP pool as an example:
Users who deposit WETH/OP LP tokens into the Amulet’s “Velodrome vAMMV2-WETH/OP” Vault will receive the following features provided by AmuShield:
24/7 Monitoring of Velodrome’s vAMMV2-WETH/OP pool
AmuShield will monitor the Product Constant of vAMMV2-WETH/OP Pool.
What is a Product Constant?
x * y = k
“x” and “y” represent the two paired assets within the pool i.e WETH and OP. “k” equals a constant value that the algorithm maintains by adjusting the prices of each asset in the pool.
The total value of token “x” reserves multiplied by the total value of token “y” reserves must always equal the same value, “k.”
AmuShield monitors this value k and is triggered when it falls below__. (to be determined through risk assessment)
Emergency Retrieval
In the unlikely case that vAMMV2-WETH/OP pool gets exploited and causes the Product Constant to drop below the trigger price aka the trigger point, AmuShield will be activated and subsequent claims prepared (if needed)
User’s WETH/OP LP tokens will be exchanged for the remaining of their funds and the claim process will begin (if there is no compensation from the project team)
Financial Coverage
The Amulet Safety Fund (ASF) provides financial coverage for all our listed vaults on Amulet. In case of a trigger event, the ASF will be used to compensate users for their financial loss. Please note: The amount compensated will be based on the actual loss incurred and dependent on the available capital in the ASF.
For more information about the ASF, please read here
Auto-compounding of $VELO Rewards
By depositing WETH/OP LP tokens into our vault, users get to enjoy $VELO rewards that are auto-compounded by Amulet on behalf of users, earning them even more rewards as time passes.
$AMU Farming Rewards
After depositing WETH/OP LP tokens into our vault, users will receive Amulet LP tokens. Stake them to farm $AMU rewards. $AMU farm rewards can be harvested immediately on Amulet V2!
For more information about $AMU: https://app.amulet.org/token
User Guide
You will need to deposit Velodrome LP Tokens into Amulet’s vaults to enjoy the following benefits
If you do not have any Velodrome LP Tokens:
- Head to the respective liquidity pool, input your first and second token, then click allow
2. Deposit within the pool to receive the LP tokens
3. Head to the respective Amulet Vault to deposit and stake these LP tokens
4. Congrats! Your funds in the Velodrome pool are protected, your $VELO rewards have started auto-compounding and you are farming $AMU rewards!
If you have Velodrome LP Tokens staked within Velodrome:
- Head to Velodrome’s Dashboard
2. Unstake your LP tokens
3. Head to the respective Amulet Vault to deposit and stake these LP tokens
4. Congrats! Your funds in the Velodrome pool are protected, your $VELO rewards have started auto-compounding and you are farming $AMU rewards!
Yours Truly,
The Amulet Team
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What is Amulet Protocol?
Amulet Protocol is the first yield protocol with built-protection. Our platform offers a unique blend of enhanced yield strategies, transparent risk profiles, and parametric protections, ensuring users experience risk-adjusted yields within a secure and innovative environment.
What is Velodrome?
Velodrome Finance is a next-generation AMM that combines the best of Curve, Convex and Uniswap, designed to serve as Optimism’s central liquidity hub. Velodrome NFTs vote on token emissions and receive incentives and fees generated by the protocol.
