DeFi Cover Markets Protocol with Concentrated Liquidity Pools
Atomica's mission is to protect everyday investors from getting REKT. As a result, participating crypto projects see the number of new deposits, users, and average size of deposits increase, leading to faster user and TVL growth.
Imagine a hack where users of your project lose 30%+ of their net worth. For many its a life-altering disaster. But for your users, its OK, because they have a cover token and simply withdraw hard collateral from its risk market (unlike before, where the users live under constant fear of getting REKT, or stay out of attractive yield opportunities offered by your crypto project).
Cover is priced by math, supply & demand, - not humans.
Cover bootstrapping for institutional and group DAO policies
Many markets release collateral automatically,
no claims required (swap
de-pegged token for USDC).
For Crypto Projects: Boost TVL & Get New Protocol Revenue
Outcome #1: Increase Deposits from Existing Users
Imagine your existing depositor. Surveys show that the #1 fear depositors have is the risk of losing their assets. Given an option to insure their deposits against risk of loss, 5% to 30% of users increase their deposits by 2x to 4x (unlike before where users see your project as the next one to get REKT again). Become one of the launch partners and a founding member of Atomica DAO.
Select whether to activate a group policy covering 100% of your users pro-rata to their share of TVL. Users can upgrade their coverage, if desired.
For group policies select ratio of market-based or treasury-backed liquidity. Select cover bootstrapping options for institutional and group DAO policies.
Select market type - claims-based or swap-based (i.e. cover holders can swap their vault or ERC20 tokens against underwriting pools without having to file a claim).
Outcome #2: Get access to large & institutional depositors
Imagine a new prospective depositor from a crypto fund, family fund, market maker or a DAO treasury. Because large depositors are very risk averse, they almost always identify risks as to why they will not allocate capital to your project.
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With Atomica, as many as 7 major risks of depositors are transferred away to 3rd party underwriters. Now your project qualifies for deposits from funds and treasuries (unlike before, where they are unlikely to make a deposit to your protocol).
Outcome #3: Differentiate against competition
Your crypto project is bootstrapping demand-side, and needs to 10x its user base and 5x TVL. You need lots of new users. However, the next generation of DeFi users are not crypto-native. The early majority and mainstream users take 2x to 10x less risk and require much high levels safety guarantees in order for them to participate.
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With Atomica, your crypto project can address the needs of the mainstream audience and differentiate against competition: Insured by Atomica badge for your website or dApp.
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Differentiate against competition and become compatible with deposits from early majority and mainstream depositors (unlike before, where your project attracted mostly crypto-native early adopters low brand loyalty).
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Sign up to receive a Group Policy for your project covering 100% of your users.
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Join a Safety Module DAO and a) bootstrap 3rd party capital (re)insuring your project b) enable your project token to be used as underwriting token.
Outcome #4: Get a New Protocol Revenue Source
Imagine investors in your crypto project are worried about your project/protocol revenue. However, at this time, you can't introduce or increase direct fees on your core capabilities.
No problem, Atomica team can help you embed and activate a new revenue source. Upgrades of existing covers and purchases of new covers generate a consistent and predictable stream of revenue stream into treasury of your project throughout the entire life time of the user. Your project now has recurring, high-margin revenue (unlike before, where you had to introduce or increase direct fees on your core features).
For Policy Buyers: Buy Protection & Sleep Well.
Take high-risk/high return opportunities
Without Fear.
Imagine you discovered a next generation DeFi protocol on a promising L2 chain, offering 25% yield on deposit. However its just 3 week old, and the team is anonymous. No problem, - you open a DeFi Deposit risk market for this protocol, purchase a policy for 9% while collecting 16% risk-adjusted yield (unlike before, where you stay out of this juicy yield 3 opportunity).
Protect Your Assets
Imagine a hack event with 50%+ of your net worth gone. For many its a live-changing event for the worst. But for you its OK, because you have a cover token and simply withdraw hard collateral from its risk market (unlike before, where you live under constant fear of getting REKT). Works the same if you lose your assets due to hacks, rug pulls, economic attacks, or stablecoin peg failure.
Flexible Maturity & Lowest price
Imagine you came across an attractive USDT farm, and want to protect your deposit. However you are afraid that the yield on the farm may drops 24 hours later.
With Atomica, you can cancel your cover at any time, which stops charges on your pre-paid premium account balance. Now you can have coverage for a few days, or a few hours (unlike before, where you had to purchase cover for long periods of time). In addition, you always pay the market price. Should the price of cover drop tomorrow, you will be charged at a new, lower rate.
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Institutional-grade Protection
Imagine your crypto-fund is considering a $20M USDC deposit allocation to a DeFi protocol while protecting 100% of your principal. However cover is not available as risk market capacity is SOLD OUT. No problem, you can use purchase Atomica's cover with Capacity Bootstrapping, which bootstraps your cover to a target $20M in size (unlike before, where you had to skip the deposit opportunity alltogether).
Insurance Products
For Crypto Investors: Deposit Tokens & Yearn Yield.
For the first time, capital providers enjoy unprecedented choice of yields, underlying risks, leverage, concentrated liquidity pools and multiple choices of collateral. Unlike before, capital providers can earn a fair yield for the risk they are taking. This means sustainable, ultra high yields for the highly concentrated risk in junior tranches, and moderate to high yields for leveraged senior tranches.
Earn yield on almost any ERC20
Imagine you have a position in Curve Finance. You would like to earn yield from underwriting risk on. However you can not use your Curve token as first generation DeFi cover protocols only accept ETH or USDC as capital.
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No problem. With Atomica, you can use your Curve LP token as underwriting capital (unlike before, where you have to have sell your Curve Finance position to ETH or USDC first).
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Set your own yield - concentrated
liquidity pools
1st generation DeFi cover products have full reserve capital models. This results in small returns for capital providers.
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Enter concentrated liquidity pools – a new DeFi asset class where you can express your own preferences on a risk/reward yield curve.
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Now, as Liquidity Provider, instead of taking all risk or no risk at all, you can deploy capital and pick YOUR OWN yield depending on your risk appetite.
Perpetual funding model without capital pool fragmentation
In traditional DeFi cover products, policy expiration dates of 3-12 months into the future mandate long-term commitment of capital are fixed. Funding models require long-term capital.
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Perpetual funding model of Atomica protocol means capital commitments do not have expiration dates. Liquidity providers can withdraw their capital after short withdrawal delay. As a result underwriter yields are higher due to increased high capital efficiency.
Concentrated Risk Liquidity
1st generation DeFi cover protocols force capital providers to either take 100% of risk, or no risk at all of a small set of pre-define buckets of pooled risk.
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As a liquidity provider, why would you want to beconstrained to the only buckets of underlying risks?
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Atomica enables LPs to include and exclude risk markets and granularly express risk/reward yield preferences for each allocation. Allocate your capital anywhere across many junior and senior risk tranches.
Research Funded With Grants From:
Actively deploying capital in DeFi? Subscribe to API offered by our partner Protofire.io
Finding yield in DeFi is easy. The hardest part is identifying and managing risk. Atomica partnered with Protofire, a prominent Web3 venture studio, to design and manage a data analytics service on top of Atomica's Automated Risk Market Maker protocol. Subscribers get access to yield across 100+ DeFi protocols and blockchains, where risk-on returns are combined with the cost of risk hedging, turning them into risk-adjusted sources of yield. Risk hedging mechanisms is transfer of the 7 main risks to 3rd parties: stablecoin de-peg risk, smart contract hacks/bugs, anon team risk, economic & governance attacks, slashing of a staked token, oracle risk, regulatory risk.
Insured Alpha API
250$Every monthFollow the smart money: highest risk-adjusted yields in DeFiÂ- Access to overview dashboard
- Cover Rate API for Stablecoin Pools
- Cover Rate API for LP Staking Pools
- Cover Rate API for Single Token Staking Pools
- Private Discord Community
Institutional Alpha
499$Every monthRisk adjusted yield API for your portfolioÂ- All Insured Alpha API features plus:
- Yield vs Cover rates for stablecoin/dual/single-token pools
- Insured Yield API: risk-adjusted, principal-protected yields
- Workshops on Special Topics of Interest
- Personal Account Manager
- Large Cover Bootstrapping
- Automated Cover Position Scale Up/Scale Down
Notable Quotes
Join Atomica on its mission to protect everyday investors from getting REKT.
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