$AMPL on Binance Chain - What happens Next?

$AMPL on Binance Chain - What happens Next?

By Chenhuang_defi | CanUHodl | 9 Jun 2021


$AMPL on Binance Smart Chain (BSC) is a matter of WHEN, not IF. 

The test bridge for cross-chain $AMPL between Ethereum and BSC is already live on testnet and according to Nithin Krishna, a core software engineer at Ampleforth, it will be live on mainnet soon:

“$AMPL on BSC is ready to go and should be live within the next two weeks. We are wrapping up some final testing.” - Source 

Isn’t that exciting!? 

Now let's discuss what happens next. What can we expect from $AMPL on BSC? How will it impact the adoption and utility of $AMPL? How will this evolve the Ampleforth ecosystem?

Let’s get to it:

Incentives

The crypto economy is built on the use of incentives and cryptography to design new types of systems, applications, and networks. 

With crypto-economic incentives, communities of participants are encouraged to cooperate and create value that ensures the success of their respective platforms, applications, or networks by increasing their utility. 

These types of incentives influence the behavior of system participants by changing the relative costs and benefits of choices those participants may make. 

For example, many AMM-based DEXes on Ethereum implement pay-for-performance reward systems that compensate liquidity providers (LPs) with rewards (fee revenue + rewards) for providing liquidity to their platform and/or for specific trading pairs. 

Ampleforth already does this with “Geysers”, which are smart faucets that incentivize on-chain liquidity by rewarding users with $AMPL for providing liquidity on AMMs like Uniswap. 

Another example is with the sidechain scaling solution, Polygon (MATIC), where users are rewarded with $MATIC tokens for using their favorite dapps (ie. Aave, SushiSwap, etc.) on the Polygon sidechain. 

You see, crypto-economic incentives simply encourage users to use specific systems and perform specific tasks, which in turn provides value and grows their respective ecosystems. 

$AMPL Incentives on Binance Chain

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While nothing has been announced just yet, chances are we’ll first see brand new Ampleforth Geysers for the top AMMs on Binance Chain, where users can receive $AMPL for providing liquidity on platforms like PancakeSwap, Venus, and Cream. 

After that, I wouldn’t be surprised to see other types of dapps that already exist on Ethereum to move over to Binance Chain for those sweet $AMPL incentives and low fees.

For example, Yield Credit, the only DeFi lending platform that enables users to lend, borrow and use $AMPL as collateral may very well launch on Binance Smart Chain for the lower fees and faster speeds, as well as the $AMPL incentives.

All in all, I expect there to be a flood of $AMPL supported dapps with various incentive structures to launch on Binance Chain shortly after the cross-chain $AMPL bridge goes live. 

After all, everything moves fast on BSC and I expect $AMPL supported dapps and incentives to move fast too. 

Achieving Independence 

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Article on Multi-Chain $AMPL by Brandon Iles, Co-Founder of Ampleforth (Source)

The most successful dapps, protocols, and cryptocurrencies will be blockchain agnostic. 

What does that mean?

In regards to the Ampleforth protocol and cryptocurrency $AMPL, it means:

It is not dependent on any single blockchain and can be built or operated from different underlying blockchain technologies.

In other words, being blockchain agnostic is the equivalent of achieving independence. 

That’s a big deal. 

By the way, Ampleforth has always planned to be blockchain independent from the very beginning. Even before $AMPL launched, Brandon Iles, the co-founder of Ampleforth wrote an article where he made the case for a multi-chain world.

He deduced that we live in a multi-chain world with many layer-1 blockchains with chains on top of chains and that if $AMPL were to become an independent monetary standard and medium of exchange, it would have to be blockchain agnostic. 

Adding to this he’s quoted by saying:

“By deploying on many chains, we can leverage the benefits of every platform as needed and be anywhere anyone is storing value or making a transaction.”

That said, it’s good to see Ampleforth is following through with their original vision by making $AMPL blockchain agnostic through cross-chain bridges. And there’s not a doubt in my mind that more blockchain integrations, besides BSC, are coming soon. 

In fact, the BSC integration might act as a catalyst for speeding up integrations with other chains, with devs building their own bridges, etc.

Who knows, maybe Solana is next?

What about $FORTH?

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$FORTH token logo

We know the vision for $AMPL is to be a blockchain-independent multi-chain asset, but what about Ampleforth’s governance token, $FORTH?

I believe $FORTH needs to be a multi-chain asset supported across multiple blockchains.

Given how fast this space develops and how pretty much anyone can create bridges across blockchains I think it's a matter of time before it just happens out of blue to see $FORTH on say, Solana. 

$FORTH is simply the governance mechanism that oversees Ampleforth’s evolution and it can serve this purpose just fine FOR NOW where it is on the Ethereum blockchain. In the future, the more decentralized, the more unstoppable it gets. 

Just like $AMPL is yet to follow $FORTH on Coinbase, so it will be for $FORTH to follow $AMPL across DeFi. 

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Here I explain what all of my favourite tokens are :)


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