- Alongside website: https://alongside.xyz
- AMKT documentation: https://docs.amktdao.com
- Alongside on Twitter: https://twitter.com/alongsidefi
- AMKT Dashboard: https://amkt.batterylabs.io
This proposal aims to add the Alongside Crypto Market Index (AMKT) to the SILO Protocol. AMKT is a unique index that is designed to track the market capitalization of the cryptoasset market. It is the first on-chain index and offers a powerful primitive to gain market exposure. AMKT is fully collateralized by assets held in secure custody and is backed by the top 25 assets by market cap. By adding AMKT to the SILO Protocol, users can get exposure to a basket of digital assets and diversify their portfolio.
The addition of AMKT to the SILO Protocol offers several benefits. Firstly, it provides users with access to a diversified portfolio of digital assets. This allows them to spread their risk and gain exposure to different coins and tokens without having to purchase them individually.
Secondly, it offers a new use case for AMKT, as users can now use it as collateral on the SILO Protocol to borrow other assets such as ETH. This will attract more users to the SILO platform and increase the demand for AMKT.
Finally, AMKT will be a primative for users to borrow or lend against - for example users can execute pair trading strategies to execute market dominance plays. We envision a wealth of new applications and utility from having total market exposure in a lending market.
SILO will be the first market for AMKT. As AMKT does not have a Chainlink price oracle yet, the proposal is that it will use a Uniswap TWAP Oracle. The AMKT team now has deep liquidity across Ethereum and Polygon, and are working with market makers to build deep liquidity on Arbitrum. In addition, AMKT also has a CEX listing on gate.io (with more to follow very soon).
- Smart Contract risk
- AMKT is built on secure ERC-20 contracts that have undergone multiple audits to ensure the safety and security of users’ funds. These audits provide assurance that the smart contracts powering AMKT have been thoroughly reviewed and tested for vulnerabilities, and that they are designed to be robust and secure.
- Collateralization Risk
- Assets backing the index are attested by Chainlinks Proof-of-reserve network. Coinbase Custody is the appointed custodian for collateral assets.
- Peg Risk
- Since launching in January of 2023, AMKT has not lost it’s peg relative to its NAV (see Dashboard).
Adding AMKT to the SILO Protocol offers several benefits, including diversification, a new use case for AMKT, and attracting a new cohort of users to the platform.
The risks associated with adding AMKT are mitigated, and the addition of AMKT will provide users with more options to manage their digital assets. Therefore, we propose that AMKT is added to the SILO Protocol.