Ampleforth

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Discover Ampleforth's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Ampleforth?

Ampleforth (AMPL) is a decentralized, price-stable cryptocurrency that targets the CPI-adjusted dollar. It uses an algorithm to adjust its supply in response to demand, ensuring that its price remains stable over time. This unique mechanism allows AMPL to maintain its purchasing power, making it a reliable medium of exchange and collateral asset. Unlike traditional stablecoins, AMPL's supply is volatile, but its price remains stable, making it an attractive asset for DeFi applications and investors seeking to diversify their portfolios.

How is Ampleforth used?

Ampleforth (AMPL) is a price-stable but supply volatile cryptocurrency that targets the CPI-adjusted dollar. It is used as a unit of account and collateral asset. The AMPL protocol automatically increases or decreases the quantity of tokens in user wallets to maintain a price of 1 CPI-adjusted dollar, ensuring that contracts denominated using AMPL remain stable over long time horizons.

How do I store Ampleforth?

To store Ampleforth (AMPL) tokens, you can use the Coinomi wallet, which is available for various platforms including Android, iOS, Windows, Linux, and macOS. This wallet allows you to securely store, send, receive, and exchange your Ampleforth tokens.

How to buy Ampleforth?

To buy Ampleforth (AMPL) tokens, you can follow these steps:

  1. Create an Account: Open an account on a reliable centralized exchange like Gate.io or MEXC. You can also use decentralized exchanges (DEXs) like Uniswap.

  2. Fund Your Account: Deposit funds into your account using methods such as credit cards, bank transfers, or peer-to-peer (P2P) trading. You can also buy stablecoins like USDT first and then use them to purchase AMPL.

  3. Choose Your Method: On MEXC, you can use various payment services like Simplex, Banxa, or Mercuryo. You can also use SEPA to deposit USDT without fees and then make a spot trade for AMPL.

  1. Buy AMPL: Once your account is funded, navigate to the spot market and select AMPL as the token you want to buy. You can also trade other cryptocurrencies for AMPL.

  2. Use a Decentralized Exchange (DEX): If you prefer a DEX, you can use Trust Wallet to connect to the DEX and trade your Ethereum for AMPL. Ensure the DEX supports your wallet and follow the necessary steps to complete the transaction.

  3. Store Your Tokens: After purchasing AMPL, you can store them in your exchange wallet or transfer them to a personal wallet for safekeeping.

Remember to always follow security guidelines and understand the risks associated with cryptocurrency investments.

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History of Ampleforth

Ampleforth (AMPL) is a decentralized finance (DeFi) protocol built on the Ethereum blockchain. It was launched in June 2019 and is designed to be an alternative to central bank money, aiming to be adaptable to shocks. The platform uses a rebasing system that automatically adjusts the circulating supply of AMPL tokens daily, both positively and negatively, to maintain a stable price.

Ampleforth was co-founded by Evan Kuo and Brandon Illes in early 2017. The idea behind the project was to redesign the money and banking aspects of the cryptocurrency space, drawing inspiration from economist and philosopher Friedrich Hayek's theoretical currency, Ducat.

The project raised funds from various investors, including Brian Armstrong, True Ventures, Pantera Capital, and others. The total supply of AMPL tokens was initially set at 50 million, with allocations to different groups, including the ecosystem, seed investors, series A investors, the team and advisors, and the Ampleforth treasury.

In July 2020, Ampleforth launched its Geyser program, a smart faucet that incentivizes on-chain liquidity through Uniswap. Users can stake their AMPL tokens to earn rewards, and the program has been successful, with the ETH-AMPL pair becoming the top pair on Uniswap by liquidity and volume.

Ampleforth's unique feature is its ability to control volatility by shifting it from price to supply. This makes it a stable yet flexible currency that can accommodate both inflation and deflation. The platform is non-custodial, meaning ownership is accounted for natively on the blockchain, and it has minimal governance.

Overall, Ampleforth aims to provide a stable and adaptable currency for the cryptocurrency space, combining the scarcity of Bitcoin with the flexibility of fiat currencies.

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How Ampleforth works

Ampleforth (AMPL) is a unique cryptocurrency with an elastic supply that can change daily to maintain a stable price. Here's how it works:

Key Components
  • Price Oracles: These provide external prices to smart contracts, including the current AMPL/USD exchange rate and the Consumer Price Index (CPI) value. The CPI is used to set a "target price" of $1.009, which represents the 2019 purchasing power of the US dollar.
  • Supply States: The Ampleforth protocol can be in one of three states: expansion, contraction, or equilibrium. These states determine whether the supply of AMPL tokens should increase, decrease, or remain stable.
How Supply States Work
  • Expansion: When the price of AMPL exceeds the target price, the protocol increases the supply of tokens proportionally across all wallets. This brings the price back down to the target.
  • Contraction: Conversely, when the price is below the target, the protocol decreases the supply of tokens proportionally. This brings the price back up to the target.
  • Equilibrium: This state occurs when the price is at or near the target price, and no supply adjustments are needed.
Implementation
  • Smart Contracts: The Ampleforth protocol is implemented as a set of smart contracts on the Ethereum blockchain. The AMPL token follows the ERC-20 interface and can be exchanged on decentralized exchanges like Uniswap.
  • Chain Agnosticism: The protocol is designed to be chain-agnostic, meaning AMPL tokens can exist on multiple platforms simultaneously.
Benefits
  • Price Stability: AMPL targets the CPI-adjusted dollar, ensuring that contracts denominated in AMPL remain stable over long periods.
  • Non-Dilutive: Supply adjustments are proportional, so the ownership percentage of AMPL tokens remains constant unless users buy or sell more tokens.
  • Decentralized: The protocol is fully decentralized, with no central authority controlling the supply or price.
Use Cases
  • Diversification: AMPL aims to diversify cryptocurrency portfolios by being less correlated to Bitcoin.
  • Collateral: It can be used as collateral in DeFi protocols.
  • Alternative to Central Bank Money: The long-term goal is to create an alternative to central bank money that is adaptable to economic shocks.
Incentives
  • Geyser Program: Liquidity providers can stake their LP tokens on Geyser and receive extra AMPL tokens as a reward, incentivizing on-chain liquidity.

Overall, Ampleforth is an innovative project that attempts to create a stable cryptocurrency with an elastic supply, making it an interesting option for investors and users in the DeFi space.

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Ampleforth's strengths

The token Ampleforth (AMPL) has several strengths that set it apart from other cryptocurrencies:

  • Price Stability: AMPL targets the CPI-adjusted 2019 US dollar, ensuring that its value remains stable over long periods, making it suitable for contracts and financial operations.
  • Supply Volatility: The protocol automatically adjusts the supply of tokens in user wallets based on demand, which means that the price of AMPL will eventually return to its target, even in extreme market conditions.
  • Decentralized Governance: AMPL is governed by the FORTH token, which allows holders to vote on protocol parameter changes and direct liquidity mining emissions, ensuring decentralized decision-making.
  • Non-Dilutive: Supply adjustments are proportional, so if you own a certain percentage of the network, you will always own that percentage, regardless of changes in supply.
  • Oracle Safety: Although attacks on the Oracle network can temporarily corrupt inputs, the protocol is designed to minimize the impact of such attacks, ensuring the safety of funds.
  • Elastic Finance Ecosystem: AMPL is the primary building block for lending, borrowing, and creating derivatives, making it a versatile tool for decentralized finance (DeFi) applications.
  • Security: AMPL is an algorithmic protocol, meaning that assets cannot be forcibly seized or frozen by administrators, ensuring a high level of security for users.

These strengths make AMPL a unique and valuable asset in the cryptocurrency market.

Ampleforth's risks

Ampleforth (AMPL) is a cryptocurrency that targets a stable purchasing power, similar to the U.S. dollar, but with a volatile supply. This unique approach aims to provide predictability for transactions and smart contracts. However, it comes with several financial risks:

  1. Market Volatility: AMPL's supply adjusts daily based on market demand, which can lead to significant changes in the number of tokens in user wallets. This volatility can result in losses if not managed properly.

  2. Oracle Risks: The Ampleforth protocol relies on a network of oracles to determine the price-exchange rate. Attacks on these oracles can temporarily corrupt the inputs to the supply policy, although the protocol is designed to mitigate the impact of such attacks.

  3. Liquidity Risks: AMPL is traded on a limited number of exchanges, which can lead to liquidity issues and affect its market capitalization.

  1. Regulatory Risks: As a decentralized cryptocurrency, AMPL is susceptible to regulatory changes and potential restrictions, which can impact its value and usability.

  2. Smart Contract Risks: AMPL is built on the Ethereum blockchain and uses smart contracts for various functions. Any vulnerabilities or bugs in these contracts can lead to losses or security breaches.

  3. Governance Risks: The Ampleforth protocol is governed by the FORTH token, which can lead to governance disputes or decisions that negatively impact the value of AMPL.

  1. Counterparty Risks: AMPL is used as collateral in various DeFi applications, which exposes users to counterparty risks if the other parties involved in these transactions default or fail to meet their obligations.

These risks highlight the importance of thoroughly understanding the Ampleforth protocol and its underlying mechanics before investing in AMPL.

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Did Ampleforth raise funds?

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Ampleforth’s team

  • Brandon Iles: Co-founder of Ampleforth, with a background in computer science and experience in machine learning and cryptocurrency development.
  • Evan Kuo: Co-founder of Ampleforth, involved in the project's vision and development since its inception in 2018.
  • Alex Allen: Part of the team, working on improving the functionality and usability of the token.

Whalee AI

The fundamental analysis assistant for crypto value investors.

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