I Love Hacks

Transcript

how are we doing this afternoon it's the second day of token 2049 I mean if you're tired that's not surprising really and with these conferences can't tend to go on a little bit I want to thank you all for at least joining me here and uh learning a little bit more about why I like hacks or love hacks my name is Rupert I'm from a company called amulet it's right there up on the board um what you don't know about me is I've already put the title that I love hacks but I really really adore hacks now that might sound like a bit of an inflammatory comment you know given the state of the industry that we're in right now and we see them every week coming up and going away a lot of money has been stolen well let me uh explain a little bit more is it

it's a bit of a love-hate relationship that I have uh with the the hacking industry or the hacking part of our industry and there's a very good reason why it's good for me which I'll come to in a second but before I do that I just wanted to check how much money do you think was stolen in defy last year take out the exchanges take out the actual chain Revenue yeah how much how much money was stolen in D5 last year any any number David what number 500 million wow you're pessimistic it's lower than 500 million so I can tell you

that give me another number over here hakod it's higher than 89 uh million sorry I think he said 500 billion 89 it's in between I'm gonna pull off the bandage flip what 150 million okay I'll go out guys I'm gonna give the actual figure it's 12 billion dollars okay right so the one thing that happens at uh conferences like this and then crypto in general is we throw out these big numbers all the time it feels like somebody's raised another four billion here somebody's spent another 500 million there so I want to put that 12 billion dollars into context so another question

that was different to my image than I put on the deck but thanks for changing it guys um the question is how much revenue did the D5 industry make last year they're gonna shout out loud I'm going to start with you again young man less than 10 million oh it's pessimistic it was more than 10 million so higher than 10 million we've got 500 million more than 500 million I can give you the answer the answer is 24 billion dollars so the whole industry made 24 billion dollars we got stolen 12 billion dollars if anybody could do those maths pretty quickly that's 50 of all the revenue that we made last year was stolen from

web3 and that's pretty staggering when we when we start putting those numbers together so I realize I've yet to tell you why I uh love hacks and well my new best friends amulet is here to protect the downside risk that's what we uh that's what we do amulet's a Divi uh sorry defy cover protocol we're built so you can build any sort of cover any sort of protection on top of our protocol now we're starting with stablecoin dpeg and smart contract risk and the future for us is extremely bright because amulet is also the first change in the inch

insurance and cover protocol industry for 300 years we've been doing it exactly the same since some old boys back in London and the Lloyd's coffee shop set up how the insurance industry should work and we are the first chains so how do we do that well we do it with the PCR of course now um no doubt you've got your pamphlets you've already read up on the PCR everybody knows what the PCR is right no nobody knows other people's like a punching Judy act this all right the PCR is not what makes time travel possible I'm sorry to say this is my favorite picture of the flux

capacitor from Back to the Future the before I tell you about the PCR I've got to explain how the industry actually works and why it's a bit of a paradigm shift for what we're doing so defy cover is a two-sided Marketplace you've got on the one side people who come in and stake their Capital now that's state capital filters into the underwriting pool and it is the underwriting capital for the policyholders on the other side and then of course if there's a claim it comes out the underwriting pool and the state capital but that is actually also the bit of the problem because you get this decision-making process of like how or who you're going to disappoint now the

slides have gone a little bit of Rye in there in the in the presentation but you get the point are guys who are taking out the policy if you pay out their claim they're going to be very happy but the people who have staked into the protocol are extremely unhappy it's their money being used to pay out that claim on the other uh way it's also true you don't pay out the claim you don't keep to your morals you don't do what you're supposed to do as a cover protocol and you make your stakers very happy but only for a very short time because their premiums are going to drop and they're not going to be able to get the returns they were expecting so it's kind of like arguing with your wife nobody's gonna win from uh this

scenario so how do we fix that problem well that's where we come into it so we take staked capital and we put that state capital into a Solana proof of stake validator now that's very important not only for us but also for Solana because it runs the blockchain and it's not just uh Solana I want to point out we're a multi-change solution but that's the one we're built on right now and this is how we're running our system so we're going to stick with that for a second so that bridge up runs the blockchain it provides us a yield and it's that yield that we then put into you remember it the PCR the proto-controlled reserves this is the central most important point about what we're doing here at amulet

now if I put in the rest of the uh slide you can see the rest of the system is exactly the same policyholders get their claims they pay in their premium into the protocol controlled bucket but the key thing is we have this protection this layer of separation between state capital and what is the underwriting capital in between because we're using the yield and not the principal if you put 100 bucks into this system and it generates six bucks out of the um uh the proof of stake validator it is the six bucks that is risked not the principal my slide's gone awry again but anyway

you get the picture this means on both sides of the uh of the protocol we're making people happy we're making we're coming true with what we can do and we can make a lot more people happy as well because we are a community downrun initiative and it is a a ability to govern ourselves in a decentralized way that helps everybody in the amulet protocol so in other words we're solving one of life's great problems maybe not the arguments with my wife but certainly some of the things that we're doing in defy cover and for the first time ladies and gentlemen I'm very very excited to share that proud amulet protocol goes live

today after 10 months of hard grind and extensive audits the protocol goes live at 2PM UTC it will be live to the public on the Solana chain and for the first time it's also enabling Solana users to get cover they've never had this uh before with a native D5 protocol on their chain and we're going live with you can probably see that the logos up there but radium Orca Soul land port finance and tulip now there's many many more to come over the uh over the next few months in fact this is really the start of a very long journey for us because we're going to be

adding dozens of protocols to our uh our product we're also going to be adding in stable coin staking so rather than staking in Seoul you have to be able to stake in usdc nft cover wallet cover custodian cover alternative chains and alternative chains is extremely important I suggest I said earlier that we are a multi-chain solution but it's much wider than that we have to protect everybody with inside web3 and if anybody's going to do it I guarantee you it's my team at uh amulet that are going to do it because I am extremely bullish on them and I've seen what they can do in the past 10 months so I urge you all this evening when it gets

to about 2PM UTC or you know do it in the morning don't worry go out for a party tonight guys um go over to amulet.org check out the platform if you own any stole Seoul please take it in our protocol that's not Financial advice that's just doing me a favor really um believe in the system believe in what we're doing believe in the mission that we're we're trying to achieve because I don't want you guys to miss the opportunity to say I was there I was there when amulet started because in 10 years time believing me this is going to change what the insurance and the defy cover industry is doing thank you very much for listening to me

that's amulet.org I've got a few more minutes left on my uh timer here so has anybody got a question dying to ask about cover and the most exciting thing they've heard all day ah this is your fine excellent beard by the way do we go to the same Barber possibly um I had a question about the number of clients you're bringing on do you limit that based on how much you have in your um protocol fund uh so that you're not overextending cover in case they all Clan it's a very key point so the question uh for all those who didn't actually hear is about in terms of total

capacity and what we can do and it's a massive issue for all Insurance firms and all cover firms and essentially yes you'll we limit um we're limited by how much uh capitalist staked in our pools before we can actually issue new policies on on on top so that is all controlled automatically with inside the PCR it's a big part of a you know our designing process um yes that's the the in in short anybody else got any other questions we've got three and a half minutes left I'm I I've got one regarding the expansion of uh types of insurance you could offer yep so the the ones you've got look great do you uh envisage being

able to expand that out to um cover a wider range of D5 products and uh is there an element of of uh contagion risk within the project called whereby the principal would ever be at risk or or is it inherently designed to scale so that that's never the case two very good questions I'm going to answer the the second one first because it's a very quick answer essentially is there a contagion risk no but and there was a big bug today it was a Black Swan event large enough to take out a chain or yeah many many multiple protocols all at the same time that is where there is a major-ish issue for not just us but any insurance

um uh protocol will cover protocol now the likelihood of that happening is infinitesimally small which is why we have designed that into our risk models the other question wasn't in terms of what we're doing in the in the uh in in the future and other products that we can we can add in short we are driven by the demand we're driven by where people want to get the cover so what we're finding with our customers is that they're coming to us with innovative ideas on things that we haven't thought of as they need to get covered what we're often finding is that our customers are working with JP Morgan Goldman Sachs um BlackRock and they need these large amounts of cover in order to drive those guys into their own protocol

so where do they get it from you can't go to Lloyds you can't go to the traditional insurers they just shut the door to you we understand the risk we understand the problems and we design a product specifically for them that works