Well, my research into Ampleforth (AMPL) led me down the path of investigating Ampleforth Geysers. Somewhat complicated and confusing for ordinary investors such as myself. But my interest in Ampleforth as a stand alone long term investment heightened my curiosity into what the hell these Geysers are anyway. Hopefully what follows is a simplified view of the facts surrounding the Geyser investment world.
Basically, an Ampleforth Geyser is akin to a faucet with smart features which by the investor providing liquidity allows the investor to receive AMPL as an incentive for providing said liquidity. Huh???? Essentially the concept is simple. I have identified four different Geysers, but for the purpose of illustration, I'll use Beehive V3, which is a liquidity providing tool on Uniswap.
So, how does the Geyser work and what are the returns? First, you must deposit an equal US Dollar equivalent of Ethereum and AMPL tokens. From this deposit you will receive a drip of Uniswap V2 tokens which you then stake to the Ampleforth Geyser. In return for providing liquidity in this fashion your return is receipt of AMPL tokens. The return on investment widely varies across the four Geysers ranging from approximately 8.37% on Beehive to approximately 219.81% on the Trinity Geyser. But the bottom line on return is basic: The more liquidity you invest plus the longer you invest the liquidity for equals more AMPL you will earn.
In my opinion, this is not an investment for the new investor. The process requires knowledge developed over time and varied experiences in investing. But if you are researching Ampleforth for any reason you will inevitably run into Geysers and I hope this article provides a simplified explanation of Geysers, what they are and how they work.
I am merely an ordinary small investor who likes to share what I've learned. I am not in any way a financial advisor and as such, do your own research before investing. If you enjoyed this article please like it, comment and/or tip. Feedback is always welcome here.