Rebase mechanism for Ampleforth is what separates it from other stable coins. The rebase mechanism can be confusing and a little overwhelming to understand. To begin, rebase is done to help regulate the value of Ample closest to $1. Or better yet the number 1 which we humans add value to in the real world to make $. Fiat currencies survive on the concept of trust and perceived value, a $1 bill equal 1 and a $5 bill equals 5. Regardless, they are paper constructs on which we barter goods with. Relating to Ampleforth, a stablecoin unlike any other because it's median price is literally a number many are comfortable and understand well, 1. It isn't pegged to any tangible item but rather to code.
Self-Stabilizing Seesaw(Rebase)
Imagine a self-stabilizing seesaw, a normal seesaw with a self-stabilizing machine in the middle. We have two identical twins weighing the same at 100lbs. Yes, I am an American. When both twins sit on each side of the seesaw(supply and demand) it's level. Assume one twin gained 50lbs. overnight and disrupts the balance. Now, one side has 100lbs.(supply) and the other 150lbs(demand). Our self-stabilizing seesaw(rebase) will once every 24 hrs. slowly even the sides of the seesaw until its balanced again. Rebase tries to keep the value of Ampleforth balanced between supply and demand at 1.
