Ampleforth
Ampleforth is a cryptocurrency that aims to revolutionize money. AMPL, the protocol's native token, is intended to be used as collateral for decentralized banking systems as well as an alternative base currency for the crypto-economy. The AMPL token is an ERC-20 token that operates on the Ethereum network.
The "countercyclical" economic policy implemented by the Ampleforth protocol distinguishes it from other DeFi protocols. Simply put, this means that if the demand for AMPL goes up, the supply of tokens also goes up to keep the price stable. This countercyclical nature is favorable from an investment standpoint, as it gives AMPL a low correlation with the likes of BTC and ETH.
Ampleforth, formerly known as Fragments, was established in 2018 by entrepreneurs Evan Kuo and Brandon Iles. Ampleforth was conceived as a method of issuing crypto assets to gig economy workers, such as those who might deliver for Kuo's original venture, Pythagoras Pizza. In short, it would enable in-house employees, third-party delivery drivers, customers, and even affiliate marketers to earn tokens representing a portion of Pythagoras Pizza and its profits in exchange for finishing simple tasks. The project got $4.75 million from investors, including Coinbase founder Brian Armstrong and well-known venture capital firms True Ventures and Pantera Capital.
It solves a wide range of problems.
Supply meets demand with no dilution - There are times when more money is simply needed. However, unlike the fiat money-printing machine, which makes those who hold cash less valuable, AMPL doesn't do that. If additional AMPLs are required, they will be provided, but the adjustments will be applied globally and proportionally to the balances of all wallets. This merely denotes that your percentage of network ownership remains fixed, much like Bitcoin.
It solves the Bitcoin and gold inelasticity problem - On the other hand, there is no fixed amount of AMPLs that will ever be available. This indicates that there can be as many as are required. This solves the problem of inelasticity faced by store of value assets such as Bitcoin and gold, making AMPL a viable medium of exchange as well.
Scalability - The Ampleforth Protocol, as stated in the project's Whitepaper, is independent of any specific chain. It's currently used as an ERC-20 standard token, but it can exist on many platforms at the same time.
Ampleforth runs a stablecoin called AMPL, and the software that controls the supply of AMPL is changed every day to keep the price of AMPL equal to that of the U.S. dollar.
As a result of AMPL's design, coins will be available in three ways:
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Expansion – The price of AMPL is greater than $1, requiring the introduction of new tokens into the AMPL economy.
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Contraction - The price of AMPLE has fallen below $1, resulting in the removal of tokens.
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Equilibrium – The cost of 1 AMPL is precisely $1.
The Ampleforth software uses Chainlink, an Ethereum-based data provider, to obtain price data.
The Ampleforth protocol gives investors a great opportunity to expand or protect their cryptocurrency portfolios since the price of AMPL tokens is slightly linked to the price of other digital assets like ether (ETH) and bitcoin (BTC).
The AMPL token is also a reliable and effective form of collateral that is often used in decentralized finance (DeFi).
Ampleforth crypto protocols are used to reward on-chain liquidity through the Geyser programs in order to boost adoption. Geyser gives AMPL token rewards to liquidity providers (LPs) who stake their tokens on Geyser in exchange for more AMPL tokens.
The non-dilutive and elastic nature of the Ampleforth protocol distinguishes it from all other protocols in the ecosystem. Additionally, it is less dependent on legacy financial systems than other stablecoins.
DATE NEWS/EVENTS IMPACT 08/12/2022 The Ampleforth developer introduces an Ethereum-based token resistant to inflation +41% Increase 12/08/2020 Ampleforth increased after the launch of Yam Finance +35% Increase 29/07/2020 DeFi Darling Ampleforth tumbles as unique feature burns traders -51% Decrease
The Ampleforth protocol could change the way money works by introducing a new type of asset that is both stable and hard to censor. Ampleforth must still overcome obstacles in order to become a viable alternative to national currencies and Bitcoin, despite the project's past achievements. These include building trust and legitimacy within the cryptocurrency community and teaching users about how the various monetary units function. Ultimately, if Ampleforth achieves its goal of becoming a global currency, it could have far-reaching effects on how money is used and exchanged around the globe. It remains to be seen if this ambitious project can accomplish its goals.
