Investing in cryptocurrencies is increasingly common in the world of digital assets. However, how to manage risk on blockchain? This is the idea of Amulet, a platform that combines income opportunities.
RiskFi (risk finance) is the new concept in Web3. It is considered one of the next generations of blockchain investment. The system performs accurate analyzes and provides information for investors to seek bold applications, while mitigating risks and ensuring secure returns.
How does Amulet work?
In the DeFi environment, it is possible to manage the degree of risk of investments. Like all variable income applications, cryptoactives have very volatile prices, some more than others. Therefore, it is necessary to know how willing the investor is to take certain risks.
Amulet provides important data for users to evaluate whether or not it is worth purchasing certain digital assets. The network also analyzes investor behavior and can even suggest more suitable applications according to the profile.
The name of this process is risk adjusted yield, in which it is possible to manage investment strategies, considering risk, return and the user's profile. It even has built-in loss protection.
AMU Token
The AMU token is native to the Amulet system. It is governance, that is, holders have the power to vote on decisions to improve and improve the platform. It is also given as a prize to the most active participants in the environment.
Additionally, there is the dual version of the token, veAMU, used for rewards. Another possibility is to use it for staking: by leaving AMU locked for yield, the user receives veAMU to make trades. Holders also have the right to vote on the ownership of veAMU.
It is built on the ERC-4626 standard, which provides an application for yield vaults using the well-known ERC-20 protocol. It is also suitable for tokens used in lending, DEX aggregators, and investment platforms.
Risky investments
Cryptoassets are variable income investments. The name already suggests that income varies over time. They are different from fixed income, in which the investor already predicts the return over the period or, at least, the income.
In the physical world, brokers and analysts evaluate the investor's profile to choose the most suitable investments. In DeFi, there are automated applications, such as the AMU token system. It indicates cryptocurrencies and other digital assets with the greatest chance of appreciation.
For those starting out in variable finance, it is important to know that investments are subject to market variations and even geopolitical situations. Amulet makes several analyzes about the assets that can bring the most gains over time.
Gourmet chef on the blockchain
Amulet's developers say that the system works like a gourmet chef, who chooses the most promising applications with discretion. The system not only includes cryptocurrencies, but studies the projects and sees what rewards are expected.
Another detail analyzed on the platform is the sustainability of the project, whether the protocol and blockchain are secure. She also focuses on new developments in this world and analyzes earning opportunities in new releases.
Learn more about cryptocurrencies
The Amulet system is innovative for analyzing the risks of investments in Web 3.0. To stay up to date with this and other news in the world of cryptocurrencies, continue reading the NovaDAX blog, which also provides investment tips. Visit and check it out!
