If you don't truly appreciate the power of Ampleforth (AMPL) just yet, I think it's high time to learn its merits. This is what I will cover in today's post as I actually think it is one of the most unique and interesting concepts I have come across in blockchain. So sit back, relax, and learn along!
Introduction
Innovative projects are very rarely easy to understand- take it from me: we're early adopters of blockchain, a revolutionary technology in itself, so do not expect to be able to understand every great idea right off the bat. Instead, take some time to learn about the ecosystem, and the various new and exciting projects popping up. Obviously it will take some technological genius to take us from a centralised to a decentralised, blockchain world. Don't be afraid to ask questions, do your readings, and participate in forums.
"We're always excited to introduce Ampleforth to new people because after an initial flurry of questions, we find they become increasingly convinced of its simplicity and clarity of purpose. We welcome you to join us in this early phase where your thoughtfulness has an enormous impact".
Such an innovative project, Ampleforth, presently might have changed the rules of the game. So let me take you through some of these changes, in a way that will be easiest to understand.
Did you know about the two types of tokens?
The Tokens and the Technology
AMPL and FORTH are separate in that the latter is the governance token of the Ampleforth ecosystem, whilst the former is a "stablecoin" (careful!) unlike any other. Believe me, this is far too exciting a concept to be deemed a mundane "stablecoin" and you will hopefully agree by the end of this guide.
AMPL
'Stablecoin' out of lack of terminology. It's broken the dictionary- now that's what you call innovative!
1. What does it do?
Simply put, it facilitates a solution to a problem.
The Problem:
Cryptocurrency is wildly volatile (no secrets there), so one part (and quite possibly one of the only parts) which hinder the adoption of crypto into mainstream finance, is the mechanisms which depend on stability.
Yes, we're talking about contracts, a fundamental component of the modern financial system. They helps facilitate credit and debt and often depend on stability so that both the creditor and the debtor can come to mutually beneficial middle-ground where neither is at serious risk of loss.
Let's try a thought exercise: suppose you were to borrow a Bitcoin in order to purchase your car, worth that much (let's say a couple months ago when Bitcoin hit $30,000). Now you are indebted to the creditor who you borrowed 1 BTC from, and owe at least that much back. A couple months later, with the price hovering around $45,000 at the time of writing, it almost would be unfair to you to pay the same 1 BTC back when it has escalated in value.
You wouldn't want to engage in this contract would you? Well that's exactly what AMPL can fix for you.
The Solution:
"AMPL is like Bitcoin except it can be used in contracts"
Now that looks a bit more agreeable doesn't it without all that volatility. "But why would I want to buy it then"? Well read on.
The proof is in the pudding.
2. How does it work?
The way it works is crucial to understand why you should buy it. See, the price doesn't change much, but the token's supply does. It is with this, tweaking the supply, that they can guarantee the relatively stable price. It doesn't crash so the creditor loses, and it doesn't moon run so that the indebted lose.
It is still true to the nature of crypto as, much like Bitcoin, it is still algorithmic and uncollateralized. However, it translates price-volatility into supply-volatility. The quantity supplied, and held in users' wallets can automatically increase or decrease. When the price is over $1, the number of tokens in wallets increase proportionally, ad when it is below $1, they decrease proportionally.
This is called "rebasing" which happens once a day. What's great is that when the AMPL system grows, you automatically get more AMPL even though the price remains stable around $1.
3. What makes it different to "Stablecoins"?
Unlike other stablecoins which are often supported by commercial or central bank, AMPL remains true to the decentralised roots of the blockchain community. It allows us all to have a stable solution, without the need to rely on (soon to be desolate) the established financial sector.
Bonus: How to claim your FORTH
Did you know that you can claim FORTH with the first? Well, only if you have interacted with on-chain AMPL before the date 30/03/21. Go to this link to claim if you are eligible:
https://www.ampleforth.org/governance/claim/
If you aren't eligible, it's time to learn more about it!
What is FORTH?
Put simply, its the governance token which allows holders to be able to vote on decisions in the Ampleforth system. In this it allows the community to take control in true spirit of decentralisation.
What's been done and what's next?
The project clearly has a new and innovative approach to crypto. It can provide a complete overhaul of how we can use crypto and leads to the possibility of a higher rate of blockchain adoption.
It has big plans:
- AMPL supported on cross-chain bridge
- AMPL available for lend / borrow on chain
- Launch Elastic AMM
Not to mention the accomplishments already passed:
- 3/5/21 — Removed Token Upgradeability
- 10/25/20 — Launched Balancer "Smart Pool"
- 9/10/20 — Launched Uniswap Geyser "Beehive 2" Program
- 8/20/20 — Launched Mooniswap Geyser "Enceladus" Program
- 8/19/20 - Published E-Fi Roadmap
- 8/7/20 - Removed Pause Function
- 8/5/20 - Ampleforth Research Followup Study - Gauntlet Network
- 8/4/20 - Updated State of Network
- 7/1/20 - Geyser Liquidity Mining Program
- 10/23/19 - Rebase Reaction Lag Adjustment
- 6/13/19 - Ampleforth Bitfinex IEO
- 5/19/19 - Ampleforth Whitepaper / Research Thesis
- 11/20/2018 - Ampleforth Trail of Bits Audit
- 9/5/2018 - Ampleforth Testnet Launch
I hope this was everything you need to be introduced to this wonderful project.
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