23 July 2021: It is finally here. Not only is Ampleforth multichain across Ethereum, Binance, & Matic, but it is now finally integrated with Aave lending & also Alchemist (MIST). The integration with Alchemist & what MIST is will be the topic of a future article. This article is going to focus on the implications of the Aave vote and what it means for Ampleforth to now be the very first rebasing cryptocurrency to be available for lending.
The Long Awaited AMPL + AAVE Integration
Ampleforth integration with Aave has been a long awaited development by the community on the road map to the ongoing success of the Ampleforth protocol. With a successful vote, this have finally come to fruition. So, what does it all mean? Well first, AMPL was also designed to be a borrow/lending asset. It addresses the shortcomings of other cryptocurrencies like Bitcoin in that volatility is placed into the supply, not the price. That way, the principal amount of any loan will always be easily identifiable.
For example, if you borrow 1000 AMPL through Aave and it positively rebases by 2%, that 1000 AMPL is now worth 1020 AMPL. However, you only need to pay back the principal plus the agreed long term interest rate. If Bitcoin goes up by 2%, the principal becomes lost within the price volatility and it can make for a confusing transaction.
Per Brandoniles on Twitter, one of the crew for Ampleforth, integration with Aave at this time will ONLY consist of borrowing/lending, not collateral. This is in place to protect Aave and ensure no additional risk is added to the platform. This way, Aave can enjoy the positives of adding a stable, durable algorithmic lending asset like AMPL without any of the unnecessary risk associated with collateral, ensuring that this addition to Aave only provides upside with no downside potential.
Due to the non-collateralized nature of AMPL, the protocol can be economically scaled infinitely without any added risk associated with it. This makes it a strategically valuable and important asset when it comes to scalability for lending purposes. AMPL is the only true decentralized unit of account that acts like a stablecoin without any of the associated risks of collateralization or centralization, making it far more ideal that that of USDC, Tether, or DAI.
In summary, this tweet brings it home:
This new integration with Aave brings AMPL full circle in finally beginning to realize its full potential within the cryptocurrency space, within DeFi, and soon within the entire global economy. The vote to integrate AMPL onto Aave passed with over 75% of the vote, demonstrating the widespread enthusiasm for adding such a durable, secure, & scalable lending asset.
This new partnership between Ampleforth and Aave will demonstrate to the entire cryptocurrency market not only the strength of the AMPL protocol, but also what the future of decentralized finance actually holds. The rapid development of AMPL has been truly remarkable and the development team deserves the biggest pat on the back. AMPL has demonstrated its ability to be infinitely scalable without a security issues from its cross-chain integration between the Ethereum, Binance, & MATIC networks. It will soon demonstrate its unparalleled ability to be the ultimate unit of account & best lending asset within the cryptocurrency space (and arguably already, the world).
DeFi Summer 2.0 is here and the holders of AAVE, AMPL, & FORTH are all in for a marvelous treat.
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