Ampleforth

Ampleforth (AMPL)

Ampleforth is a unique cryptocurrency that seeks to address some of the inherent challenges faced by traditional digital currencies, such as volatility and inflexibility in supply. It is designed to function as a stable and adaptive digital asset, with its supply dynamically adjusted to maintain a stable purchasing power. Unlike most cryptocurrencies that have a fixed supply, Ampleforth has a flexible supply model that is governed by changes in demand.

The Ampleforth protocol

The core of Ampleforth’s innovation lies in its protocol, which automatically adjusts the supply of its native token, AMPL. This process is known as “rebasing” and occurs daily. During a rebase, the supply of AMPL in a user's wallet can increase or decrease based on the token's price relative to a target price, currently set at one 2019 US dollar. If the price of AMPL is above this target, the supply expands, and if it is below, the supply contracts.

How rebasing works

Rebasing is a key feature of the Ampleforth protocol. It is a non-dilutive supply adjustment that proportionally alters the number of AMPL tokens in all user wallets. For instance, if the demand for AMPL increases and its price rises above the target, the protocol will increase the supply so that each wallet receives more tokens, thereby aiming to bring the price back down to the target. Conversely, if the demand decreases and the price falls below the target, the supply contracts, reducing the number of tokens in each wallet to help increase the price back to the target.

Ampleforth’s use cases

Ampleforth is designed for several key use cases within the cryptocurrency ecosystem and beyond.

A stable unit of account

One of the primary use cases for Ampleforth is its potential to serve as a stable unit of account. The protocol's adaptive supply mechanism aims to reduce volatility, offering a more stable measure of value compared to traditional cryptocurrencies with fixed supplies. This stability makes it appealing for use in contracts and as a potential medium of exchange in decentralized finance (DeFi) ecosystems.

Diversification in crypto portfolios

Ampleforth introduces a new asset class within the cryptocurrency market by offering a non-correlated asset whose supply adjustments can potentially hedge against market volatility. This feature can make it a useful tool for investors looking to diversify their portfolios and manage risk associated with highly volatile digital assets.

Integration with decentralized finance

Given its unique characteristics, Ampleforth is well-suited for integration with DeFi platforms. Its elastic supply can contribute to the stability of decentralized financial products and services, making it an attractive option for developers and users within this rapidly growing sector.

The Ampleforth team and development

Ampleforth was developed by a team of experts in economics, technology, and finance. The project was founded by Evan Kuo, who has a background in engineering and product management. The development of Ampleforth is ongoing, with contributions from a community of developers, researchers, and enthusiasts working to improve and expand the protocol's capabilities.

Technology and infrastructure

Ampleforth is built on the Ethereum blockchain, leveraging smart contracts to automate its supply adjustments and ensure transparency and security. The use of smart contracts allows for the autonomous execution of the rebasing mechanism, providing users with a predictable and trustworthy system.

Smart contract audits

To maintain the security and reliability of the Ampleforth protocol, the smart contracts have undergone rigorous audits by reputable third-party firms. These audits help identify potential vulnerabilities and ensure that the contracts operate as intended, safeguarding user funds and maintaining confidence in the system.