V2 integrates Idle Yield Tranches

Published in

Amulet Protocol

3 min readDec 21, 2023

We are excited to announce that we have integrated with Idle, a decentralised protocol with a suite of products designed to advance risk diversification and unleash the full potential of decentralised finance (DeFi).

This collaboration aims to harness the strength of both platforms to provide users with an unparalleled DeFi experience: attractive Idle yields with Amulet V2 protection.

Overview

From the array of Yield Tranches by Idle, we have selected:

Clearpool — Fasanara
Clearpool — Portofino

These strategies deploy funds into Portofino Technologies’ and Fasanara Digital’s liquidity pool on Clearpool.

This integration also introduces 6 new vaults across 2 networks to our existing list of strategies:

On Ethereum Network

On Polygon zkEVM Network

How does it work?

Amulet V2 deposits funds from its vaults into Idle’s Yield Tranche. Idle then deploys these funds into the corresponding pool on Clearpool. e.g. USDC Junior and Senior Tranches (Clearpool — Fasanara) deploy to Fasanara Investments Master Fund on Clearpool.

In Fasanara’s case, the deposited funds are lent out without collateral to Fasanara Digital for its delta-neutral market-making and arbitrage strategies within Fasanara Capital, a London-based Hedge Fund, which specializes in alternative credit and fintech since 2011.

Using USDT Senior Tranche (Clearpool — Fasanara) Vault as an example:

By depositing through Amulet V2, you receive the following benefits:

Round the clock security by AmuShield including 24/7 live monitoring of deposits, emergency response and deposit retrieval, simplified parametric coverage, and auto-tracking of compensation from the underlying protocol. Read here for more information.
Start farming points to redeem $AMULET at its upcoming TGE launch in Q1 2024.

V2 Yield Tranche Vaults currently accept USDT, USDC and

How do Idle Yield Tranches work?

Idle Yield Tranches (YTs) are an innovative primitive that allows the segmentation of yields and risks on any DeFi yield source, meeting the diverse requirements of users through two risk-return profiles, Senior and Junior. Senior YTs retain a portion of their yield to secure funds coverage, backed by liquidity from the Junior class. This withheld yield is redirected to Junior YTs, in exchange for the coverage provided.

Senior Tranche

Funds in each Senior Tranche are protected by the liquidity deposited into the corresponding Junior Tranche. Senior holders thus benefit from inherent coverage on funds across a broad spectrum of oracle and smart contract risks associated with YTs, their specific underlying yield sources, and all related dependencies.

Junior Tranche

In exchange for the coverage provided to the Senior class, Junior Yield Tranches receive a larger share of yield from their Senior counterparty, thus providing risk-on users with boosted returns.

There is no lock up period for funds deposited with Idle and yields are automatically compounded for max gains

User Guide

You may find the user guide on how to deposit assets into Amulet V2’s Vaults below:

Anddd that is all. More juicy integrations coming your way!

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 Idle?

Idle is a decentralized protocol and Decentralized Autonomous Organization (DAO) that elevates DeFi by reimagining how risks and yields are managed. It enables users to optimize digital asset allocation across top DeFi protocols, whether they want to maximize it or keep tabs on their risk-return profile.