In the DeFi platforms, one of the well known token is Ampleforth (AMPL) or Amples. AMPL represents itself as a stablecoin running on the Ethereum blockchain. This price-elastic token has a very interesting mechanism. It said that its supply automatically adjustable regards to the market dynamics.
As of the idea of being a stablecoin, it is designed to be the asset that can not be diluted by the supply inflation, whenever the market price is greater or less than 1$, the systems will mint or burn the tokens in the ecosystem to keep its value to approximately or nearest to 1$ , the adjustment is made once a day called "Rebase".
This is very dangerous to investors in some way. For example, if the investors try to buy the tokens as much as they can and make a price-stepped-buying without awareness that its function will finally dumping the price down to nearest $1 as per its algorithm. If they bought at 4$ without awareness, finally the price will be at 1$ and then they loose the funds. However, investing in the DeFi platform could return the investors with the satisfied yields. That's why it looks like the Double-Edged Sword, the investor has to invest wisely to secure their funds and best returns to AMPL.
