INTRODUCTION
Have you watched the movie, “Pirates of the Carribean’’, where human pendulum-like movements were used to balance a ship facing a storm? The pendulum-like movement of humans running from the left to the right deck of the ship, helped cushion the ship against the storm. Similar to this pendulum-like movement, Ampleforth also known as “Smart commodity money” or “Synthetic commodity money” brings a novel innovation called “Rebasing'' to blockchain, using algorithms and digital-asset protocols to convert price volatility to supply volatility. Ampleforth uses an expansion and contraction protocol to eliminate volatility in a free market economy using stable contracts.
HISTORY
Founded by Evan Kuo, a mechanical engineer and computer science graduate of UC Berkeley and Bradon Iles, a former google and uber employee who is a machine learning specialist, Ampleforth was an idea brought to life in 2019. Since its inception, the Ampleforth foundation which comprises engineers, investors and blockchain enthusiasts was created in June, 2019 with funding from coinbase, huobi, pantera capital and the likes to foster the growth of the Ampleforth project to become the world’s reserve currency.
AMPLEFORTH TECHNOLOGY
The US dollar was 100% backed by gold since its inception as the world reserve currency in 1914 until 1971 when America went off the “Gold Standard”, resulting in inflation and an increased supply of the US dollar. As the supply of fiat money only keeps increasing and causing inflation in a ripple effect, Ampleforth aims to solve this inflation problem using its Rebase protocol and the elastic supply of its native token, Ampl. Let’s just say, Jason has 100Ampl at a price of $1 and market demand causes a price increase by 30% to $1.3, the Rebase protocol initiates an increase in the supply of Ampl by 30%, hence Jason would have 130Ampl at a price of $1.3 with Ampl having a rebalanced market capitalization.
REBASE PROTOCOL
Ampleforth technology seeks to balance supply and demand in a direct proportionality. This balance is done by contracting or expanding the supply of its native token, Ampl, held in users’ wallets via its “Rebase protocol”. Ampleforth stable contract uses Chainlink price oracle and its own price oracle to source for price data on exchanges at exactly 1pm EST daily to rebase (contract or expand Ampl supply). If the price of Ampl is outside the “Ampleforth Equilibrium Range” of $0.96 - $1.06, the rebase protocol contracts or expands the supply of Ampl proportionally. So if the price of Ampl is above $1.06 at the time of rebase, the supply of Ampl would increase proportionally and vice versa. This contraction and/or expansion would take place daily until the price of Ampl falls back within the Ampleforth equilibrium range.
UNIQUE FEATURES OF AMPLEFORTH
Ampleforth uses its novel rebasing protocol making it different from the many blockchain projects in existence alongside being an unstable stable coin not backed by fiat or locked Ethereum assets.
Ampleforth stands out among all forms of currencies and commodity money as it aims to reinvent money.
AMPL
Ampl is the native token of Ampleforth. Between 2018 and 2019, Ampleforth raised about $10million in two initial coin offerings and one initial exchange offering, offering tokens to investors at a price of $1.01 per Ampl, after which 16million Ampl were distributed to investors. Upon listing on exchanges, Ampl dropped to a low price of 15cents on the 31st of October, 2019 and subsequently rose to an all time high of $4.07 on the 12th of July, 2020. Currently listed on over ten centralized and decentralized exchanges, Ampl is priced at $0.838 with a market capitalization of $251million and market dominance of 0.03%, making it the 85th most valuable cryptocurrency in the world. Aside from making profits from trading Ampl on exchanges, investors can also profit from Ampl by providing liquidity for traders on exchanges like Uniswap and Sushiswap or stake Ampl on exchanges like Kucoin for up to 15%APR in staking rewards. Visit https://www.stakingrewards.com/ for more information on Ampl staking. You can comment about your investment strategy for Ampleforth in the comment box.
USES OF AMPL
- Ampl is used as a medium of exchange while aiming to be the world’s reserve currency being resistant to price and supply volatility.
- Due to its elastic supply, Ampl serves as a reserve collateral for decentralized finance, DeFi.
- When the US dollar was made the global reserve currency, the government owned the power to print limitless supply of fiat, rather than let the market forces play its role. Ampl seeks to be an independent alternative to central bank currencies and fiat.
- Ampl provides an Arbitrage opportunity for traders who are quickest to react to the daily rebase event.
FUTURE MILESTONE
As part of plans to give Ampl a multichain feature especially for DeFi, Ampleforth plans to launch Ampl on Polkadot, Near and Tron blockchain while still running on the Ethereum network. This multichain feature would foster decentralized finance (DeFi) on other networks while also reducing network congestion and fees and increasing efficiency. New exchange listing is also on the card for Ampl to increase liquidity for traders, stakers and token holders.
Ampleforth is reinventing money and aims to transform the DeFi industry with its multichain and elastic features as well as its smart stable contracts. Ampleforth is a project to watch this decade as many economies are moving on from the harsh effects of the covid-19 pandemic. With more institutions and investors adopting blockchain and cryptocurrencies, Ampleforth would replace fiat and commodity money in a few years just like fiat replaced gold. Large amounts of funds have been dedicated to the Ampleforth foundation to foster the growth, development and adoption of Ampleforth. So, don't sleep on Ampleforth as we navigate this technology driven decade.
Ampleforth Website
Visit Ampleforth official website for more information on Ampleforth.
Ampleforth Community
Join Ampleforth's Facebook community and get involved in the project.
Ampleforth Block Explorer
Track your Ampleforth transactions with the EtherScan Block Explorer.
Ampleforth Twitter
Follow @AmpleforthOrg on Twitter to keep up with the latest updates and news
