For those of you following me for some time now, you’re well aware of my fondness for $AMPL and that I’ve been tracking the $AMPL on Aave proposal. And let me tell you, not only is $AMPL on Aave inevitable, but it's also one of the most discussed topics on Aave governance:

Aave governance forum topics

The $AMPL on Aave proposal has 50 replies and over 5k views, making it the most discussed asset proposal on Aave. 

If you see for yourself, yes there is a $BZRX on Aave proposal with more replies than $AMPL but the admin had to close the thread due to the shill army pumping the thread. And there’s a $UST on Aave proposal up there too where Stani Kulechov the CEO and Founder of Aave raised his concerns on UST centralization.

The $AMPL thread, on the other hand, has remained open, and surprisingly no concerns were raised by Stani (and he surely watches those threads closely). In fact, the $AMPL thread includes some interesting comments which I want to highlight below.

But first, let's remind ourselves that the AAVE listing is a top priority for the $AMPL team. As stated on Twitter:

Another thing, Stani of Aave is clearly in favor of supporting $AMPL on AAVE as he has actively discussed this idea with Brandon Iles of Ampleforth and liked this DeFi Bets tweet by Publish0x that stated “Lending & borrowing $AMPL is inevitable”:

Meaningful Proposal Comments

The $AMPL on AAVE proposal was received extremely well by the Aave community and incited lots of healthy discussion on how $AMPL on AAVE will innovate the DeFi space by bringing something never-before-seen in TradFi to DeFi. 

A few such comments include:

While these comments are nice and all, there are two community members, ‘AMPL_Kirby’ & ‘BNM’ who went the extra mile, taking time to explain just how big a deal $AMPL on AAVE really is. 

Let’s break down what they had to say:

$AMPL is a Safe Denomination of Debt

Forum member, ‘AMPL_Kirby’, explained $AMPL’s key trait of being a safe denomination of debt. He explained this by presenting a scenario and asking a question:

“You have the option to borrow 1 of 4 assets, but you must repay the same asset in 10 years time: USD, AMPL, GOLD, or BTC. Which do you choose?”

He then explained that the USD has inflation risk (making it interesting to borrow, but perhaps not to lend…) and that Gold and Bitcoin have price appreciation risk (making them interesting to lend, but not borrow…).

He then explained how $AMPL solves these issues by being a safe denomination of debt:

“AMPL solves all of these issues through its elastic supply protocol. The price target is inflation-adjusted and the protocol is designed to always seek the equilibrium price target over time.”

Explaining further with an example he said:

Driving this point home, he highlighted how important $AMPL on AAVE is for the project and DeFi as a whole:

“Having AMPL available for on-chain borrow/lend is one of the key steps to move AMPL forward as a unique DeFi asset and building block.”

$AMPL on AAVE is a Bigger Deal than People Think

Forum member, ‘BNM’, pointed out the hard truth that lending and borrowing stablecoins (the most frequently borrowed asset type) is actually a step backward in finance, not a step forward in cryptocurrency and finance.

Explaining he says:

“DAI had its black friday issues, and now at the center of DAI is USDC. At the center of USDC is USD Fiat. This is merely creating the US Gold Standard on the blockchain.” 

“USDC is discretionary as is USDT. They share the same issues of placing USD Fiat at the center of their systems. Both projects act in a responsive fashion which have the risks and pitfalls of discretionary systems.”

He then goes on to explain how $AMPL as a non-dilutive cryptocurrency is not just recreating traditional finance on the blockchain, but advancing it toward a new future that is only possible with cryptocurrency technology:

To end off his rant, BNM proclaimed that $AMPL on AAVE is one of the most exciting developments available and that together:

“These two innovators can take the crypto space forward into the future, push the envelope on tech and solve the issues that plague traditional finance.”