The new decentralized economy is on the edge of glory now. All these DeFi projects create a new era of cryptocurrencies. Ampleforth is another cryptocurrency project that aims to improve the DeFi sector and the overall economy of the blockchain and crypto world.
Designed to be the new type of money, the AMPL coin solves the inflation problem with its algorithmically adjusted circulating supply. We’ve made a brief review of Ampleforth coin for you to get acquainted with the world of DeFi a little more.
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How Ampleforth Works?
Ampleforth cryptocurrency (AMPL) is a new type of money, which is called smart commodity money. Technically, the project is similar to a stablecoin. The implementation of countercyclical economic policy in the Ampleforth protocol sets it apart from other DeFi protocols. In simple terms, this means that if the demand for AMPL increases, the supply of tokens also increases to compensate for price changes.
This countercyclical nature has advantages from an investment point of view. It gives AMPL a low correlation with BTC and ETH. Such a system is optimal for establishing a stable price exchange environment over long periods of time.
Ampleforth exchange rates are collected from the oracles into a single weighted rate in the Aggregator. Simply put, the oracles report to the Aggregator how much AMPL is currently on the trusted exchanges. Based on that data, a decision will be made to regulate the issue and the current number of tokens in holders’ accounts. The offer changes once a day and is open to the community. The user control panel shows the time and planned changes.
The protocol is based on the following Ethereum smart contracts:
- the contract that executes an increase or decrease in tokens;
- the contract that is responsible for collecting data on the token price;
- the contract that is automatically executing the process in which any network participant can initiate the function of collecting information on the price and activating the change in the offer.
Ampleforth cryptocurrency is available for liquidity staking. Users can get AMPL for providing liquidity on Automated Market Makers (AMM). You can see the whole list of pools on the website.
What Is Ampleforth Used for?
The main goal of the project is to create such a class of assets that would not correlate either with the price of Bitcoin or with the price of other assets. The main feature is that the protocol, while taking into account the token price, changes their current and future supply and the balances of the holders. At the same time, there is no single programmatic influence on prices.
The AMPL token is used as collateral for decentralized banking systems and as an alternative to basic money for the crypto economy. AMPL has the ability to fairly and automatically adjust its supply in response to demand, without any need for a bank. The AMPL was designed to be the simplest direct solution to supply inelasticity that constrains assets like gold and Bitcoin.
The Ampleforth team is represented by seven members. Let’s look at the main characters:
- Evan Kuo is a CEO and co-founder. Graduated from the University of California with a degree in Mechatronics, Robotics, and Automation. He worked as a product manager at Yahoo for a year.
- Brandon Iles is a co-founder. Studied at Rice University, computer science. He worked for two years at ESI as a software engineer.
- Nithin Krishna is a backend engineer. He got a master’s degree at the University of Southern California in Data Science. He started out as a software engineer at Codebrahma in Bangalore, India. He worked for various companies where he was engaged in programming and data science.
AMPL Price Changes
Since the AMPL can be used as backup collateral in decentralized banks, many users trade it as a DeFi token, which is the reason for its rising prices. It may continue to rise in value as long as there are massive capital inflows. Eventually, its rising supply will push Ampleforth’s price down to $1.
As you can see on the AMPL price graph, the coin price was changing for some time in summer 2020. These changes were caused by the popularity of the DeFi and DEXes.
Ampleforth Wallets and Trading Platforms
Since the AMPL coin is an ERC-20 standard token, you can store coins in any ERC-20 wallet. Even though the AMPL token is designed to be pegged to $1, massive capital inflows have resulted in its price significantly exceeding that peg, and even at the beginning of July 2020, it was trading at almost $4.
Every day that Ampleforth undergoes a reboot, the system tries to bring the token price down to $1. This is achieved by adjusting the circulating flow for all wallets, making the AMPL flow more flexible. These supply adjustments occur across all wallets, so users retain ownership of the network.
If you are wondering where to buy Ampleforth coin, there are several exchanges that have listed AMPL in various trading pairs.
By the way, if you do not have any assets to exchange or trade for AMPL, we are here to provide you with our service. Changelly offers you a range of rates to buy or exchange crypto in a fast and secure way.
Ampleforth (AMPL) Price Prediction
The main advantage of the project is the resistance to volatility and isolation from other assets. The main utility of AMPL is to serve as a medium of exchange. To remedy this disadvantage, AMPL can fairly and automatically adjust its supply in response to demand, without any need for a bank. The AMPL was designed to be the simplest direct solution to the problem of supply inelasticity.
Ampleforth can scale supply to meet the needs of billions of users, but can also contract for supply if it only serves 1,000 users. AMPL combines the best of Bitcoin and stablecoins.
The resilient AMPL movement makes it an ideal asset for building the digital economy. For this reason, it has the potential to be the ideal form of collateral for DeFi. Its countercyclical behavior also makes it a good addition to the crypto portfolio.
Ampleforth Coin – Summary
All in all, Ampleforth is a unique project that can suit you for diversifying your portfolio if you are interested in DeFi. AMPL token serves as reserve collateral for the whole decentralized finance sector. All this makes the token attractive for hedging, as well as an alternative to fiat currencies suffering from constant devaluation.