Ampleforth Protocol's native token, AMPL, is designed to be used as collateral for decentralized banking systems and as an alternative base currency for the crypto-economy.
Ampleforth describes itself as smart commodity money. It is independent of the chain and reportedly less associated with Bitcoin and other digital assets.
Ampleforth is a new cryptocurrency whose native token is AMPL and is gaining traction. The currency is an ERC-20 token running on the Ethereum blockchain. The main feature that distinguishes Ampleforth from all other cryptocurrencies is that the token supply is automatically adjusted in response to changes in token demand. Such a system is the best option suitable for creating a stable price shopping environment over long periods of time. Ampleforth's goal is to bring back commodity money without restrictions imposed by limited supply and exphort commodities such as BTC and gold. This is to ensure that there is never a shortage or surplus of tokens in the market. For example, suppose the market is currently demanding 30,000 AMPL, but the supply is only 20,000 AMPL. To meet this demand, the supply of AMPL will automatically increase by 10,000.
So what does this mean for you? The main benefit of this Ampleforth system is that the purchasing power of the money in your account is always the same.
Imagine you have $ 10,000 in your checking account. For the sake of simplicity, let's also assume that the total money supply in the economy is $ 1,000,000. This means you own 1% of the economy's total money supply. One day, the central bank suddenly decides to print more money and therefore the money supply rises to $ 2,000,000. This causes your share of the economy in the money supply to drop to 0.5%, and therefore the purchasing power or value of your money.
This is what Ampleforth aims to prevent. In the event of a supply shock or a sudden change in token supply, your wallet balances will be automatically replaced accordingly. So if the supply of AMPL doubles, your wallet balances are also doubled. If the supply of AMPL is cut by half, your wallet balances will also decrease. This prevents the value of your money from fluctuating due to external events.
Ampleforth offers a solution: it is not too strongly associated with other cryptocurrencies, allowing you to reduce risk. The following are Ampleforth's exact correlation figures with other currencies:
- Bitcoin: 0,42
- Ethereum: 0.38
- xrp: 0,44
Wide real world usage scenarios
The following are the use cases for which Ampleforth is suitable:
To diversify your cryptocurrency portfolio: This is relatively stable compared to cryptocurrencies like Bitcoin. If you have a risky cryptocurrency like Bitcoin in your investment portfolio, adding Ampleforth to the mix can help reduce your risk.
As collateral for a decentralized bank: Suppose you want to take out a loan from a bank. The bank will ask you to provide collateral, an asset you own that can be used to secure a loan. As collateral kullanabileceginiz varl?klara ornek olarak mulk ve ekipman verilebilir. Bu, borcunuzu kararlast?r?lan sure icinde odeyemezseniz, bankan?n teminat?n?z? alabilecegi anlam?na gelir.
- Ancak, merkezi olmayan bir bankadan kredi al?yorsan?z, mulk gibi varl?klar? rehin vermek zor olabilir. Bu nedenle kripto para gibi dijital bir varl?g? teminat olarak kullanmak daha mant?kl?d?r.
- Itibari paraya alternatif olarak: Ampleforth’un benzersiz protokolleri, onu merkez bankalar? taraf?ndan ihrac edilen fiat paraya (banknotlar ve madeni paralar gibi) harika bir alternatif haline getirir.
The main features of Ampleforth are:
Rule-based: This means that the token's movements are dictated by a set of programmed rules, which makes them predictable.
Elastic: As we can see, this means that Ampleforth supply varies with price and demand.
Bankless: You don't need a financial institution like a bank to handle transactions - everything is decentralized and peer-to-peer.
Non-diluent: Unless you decide to sell some or buy more, your share of the coin remains the same.
Speculative: You don't need to buy the coin directly. Instead, you can buy derivatives of the coin (such as futures) to speculate on its price.
Result
With its unique features, Ampleforth offers great promise as a cryptocurrency and has the potential to transform decentralized finance. Ampleforth's supply flexibility and lack of dilution create a fairer money system. It is also not very strongly associated with other cryptocurrencies, making it a great tool for investors looking to diversify their portfolio.
Key takeaways
-Ampleforth (AMPL) is a cryptocurrency protocol with a flexible supply that can expand and contract according to market demand.
-The unique token dynamics of the Ampleforth Protocol make it a promising form of collateral for DeFi
-Ampleforth is not entirely a stablecoin as it does not eliminate volatility - its protocol aims to reduce volatility
-Ampleforth defines itself as "adaptable money built on a solid economy" that aims to combine Bitcoin's scarcity with fiat flexibility.
I did a detailed research on Alpleforth and I wanted to share it with you without comment. this article is a complete excerpt. source: https://www.google.com/amp/s/bitcoinairdrop.net/ampleforth-ampl-coin-nedir/amp/
