# Amplify

*Co-building DeFi infrastructure for SME invoice financing*

**Authors:** [Vadim Zolotokrylin](https://holdex.io/c/people/vadim-zolotokrylin)

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Amplify Protocol (token: $AMPT,
product at [ampt.finance](https://ampt.finance/)) is DeFi infrastructure
for invoice financing and real-world-asset-collateralised loans for small
and medium businesses.
The market context Amplify cites is the size of the SME financing gap:
a global invoice financing market valued at USD 1,561.5B,
with 40% of companies unable to receive financing from banks
or financial institutions.
The Amplify thesis is that DeFi rails can compress
that gap by tokenising receivables into on-chain assets
that pool-based lenders can underwrite directly.

Amplify started life as a Compound fork called Ampt Finance V1
and was re-architected for invoice financing in the V2 redesign.
When Amplify reached out, the protocol inherited Compound's constraint:
collateralised borrowing was only possible against deposited $ETH.
Our engineering team chose to redesign and develop a new contract suite
so real-world invoices could serve as collateral instead.
Holdex was operationally inside the project from the start,
with Vadim Zolotokrylin serving as CTO and Mark Curchin contributing as Product
and Technology Engineer alongside the operating team.

## What we shipped

Holdex's stated deliverables on the protocol cover the full V2 redesign.

- **Smart contracts.**
  The redesigned and re-developed contract suite that powers V2.
- **Invoice tokenisation.**
  Invoices and receivables represented as on-chain assets.
  Real-world invoices were minted as NFTs (ERC-725),
  with private information securely hashed on the blockchain
  and the public ID queryable via IPFS.
  Each NFT carries the invoice score, due date, amount,
  and billable party on-chain.
- **Borrowing pools.**
  Score-based loan allocation that prices SME risk against pool-level capital.
  Once their invoices are tokenised,
  borrowers lock them in unique borrowing pools
  and can take loans proportional to their invoice score,
  preventing low-score borrowers from profiting from the protocol.
- **Lender transparency interface.**
  The dashboard lenders use to inspect pool health
  and individual invoice positions.
  A full transparency policy lets lenders view, analyse,
  and decide whom to lend to: borrower transaction history, current collaterals,
  and company information are available to all protocol users in the interface.
- **SME UI.**
  The borrower-facing app,
  deliberately designed to bridge DeFi vocabulary to language SMEs already use
  for invoice finance.
  SMEs were unfamiliar with DeFi
  while lenders were already used to specific farming terminology,
  so the interface had to find the middle ground between complex
  invoice-financing terms and DeFi conventions in a clean, intuitive layout.
- **Amplify DAO.**
  Hybrid governance combining Snapshot
  for off-chain voting with custom on-chain components.
  An autonomous organisation is a must-have
  for a protocol to be considered fully decentralised,
  so Holdex was tasked with proposing the best DAO voting solution.
  The app sources proposals from [Snapshot](https://snapshot.org/#/)
  and lets users vote on them,
  while a custom voting smart contract reads voter information
  and prevents fraud, including users who try to vote with the same tokens from
  different wallet addresses.

## The story

Initial financing came from
[Tenity](https://www.crunchbase.com/organization/tenity) (amount undisclosed).
The community bounty event ran through November 2021,
and BitMart ran an AMPT Launchpad sale in March 2022.
Defactor partnered later for real-world-asset opportunities,
broadening the borrower roster beyond the original SME pool.

The intuitive interface helped Amplify onboard its first customers
and enabled SMEs to finance $100K+ in the first few months from the V2 launch.

## Links

- Product: [ampt.finance](https://ampt.finance/)
- Token: $AMPT