Ampleforth is an interesting project. The most interesting part is that it aims to be a project with a return for its investor while creating a stable money. In other words, on the one hand, it will be a coin that moves within a narrow band of value, like Tether - so that it can be widely used for its ultimate goal of shopping. On the other hand, AMPL, which is the money of the system, will not have a counterpart in the bank, unlike Tether, it will provide profit to its investors as an independent, uncensored and self-declared money like Bitcoin.
It is trying an interesting way to do this: starting from the argument that the biggest reason why the price of Bitcoin is volatile is the limited supply, it keeps the supply volatile in order to reduce the wave. When there is demand, it increases the supply and when it decreases, it similarly decreases. Moreover, thanks to Smart Contracts, which is one of the new technologies that have entered our lives, we can directly interfere with investors' wallets and put money directly into the wallet or take money from the wallet. is doing. Isn't it both interesting and scary?
There is Bitcoin, there are stable coins, where does the need for Ampleforth come from?
The most mature and proven project in the crypto world is Bitcoin. It has been working well for over ten years. No one managed to stop it or interrupt it. Do they have any problems? What are they?
Although it varies widely from person to person, its slow technological development (which is not a problem but a "necessary feature"), and its simplicity, it is not very suitable for new structures to be built on, is generally one of the complaints about Bitcoin.
Using Bitcoin for shopping? Difficult Very Difficult ...
One of the most critical examples of its slow evolution in technology is that it has not become very common in person-to-person payments. Even though the title of the white paper of Bitcoin written by Satoshi Nakamoto is "Bitcoin - Individual-to-Individual Electronic Cash System". Perhaps due to this problem, the statements of its advocates in recent years have evolved from the fact that Bitcoin is a tool that can be used for shopping, it should be seen as a kind of Digital Gold, that is, a value storage tool.
Bitcoin's competitors are trying to hit it in the weak side ...
Many clones were released afterwards in order to solve the problems experienced by Bitcoin. Over 100 in number. In fact, there is nothing to be surprised about, because when you are an open source application, anyone can sit down and create a clone. Very simple. (The real challenge is to create a community that believes in your system. This is where even the most successful Bitcoin clone - the biggest being Bitcoin Cash - suffered the most.)
Bitcoin clones are also often trying to differentiate themselves in terms of being used for shopping. In fact, the diagnosis is correct here, and the treatment recommendations vary from clone to clone: ??instead of making a compromise every 10 minutes, as in the case of Litecoin, it is one of them to do it every 2.5 minutes, thus speeding up the confirmation of transactions. Or, as in the case of Bitcoin Cash, another one is to increase the size of each compromised block so that it avoids delays due to blocks filling in peak transaction times. And finally, with second-level solutions based on Bitcoin, such as the Lightning Network, it is another example of these examples to reduce costs by using less of the main blockchain and thus make it useful for small payments (for example, buying coffee with Bitcoin).
But the current solutions are always technical, whereas the real problem is economic ...
As you can see, the above solutions are all technical. However, we have to admit that one of the most important reasons why Bitcoin cannot enter our daily life in general is actually its price is very volatile. In these fluctuations, it is almost impossible to use Bitcoin as a means of shopping, because it is a fair and value-free tool that the parties need most in shopping - so that they can have their heads and focus on their main business.
What about stable coins?
In order to solve this volatility problem, stable money anchored in fiat currencies (country currencies under the management of central banks) was issued and attracted great attention. However, as we mentioned in our previous article, the fact that these currencies are centralized is contrary to the decentralized finance principle - and their records are not good in that sense (like freezing individuals' money when appropriate).
In addition, these stable currencies can serve the purpose of short-term shopping, but in the long term, it is a frequently stated claim that the value of fiat currencies will decrease due to the continuous expansion movements of the US and European central banks. For many investors who believe in this claim, stable currencies are not very attractive except for short-term transactions.
For these reasons, there seems to be a need for independent, uncensored cryptocurrencies like Bitcoin, but with lower price volatility. Here is Ampleforth a crypto focused on answering this need. money.
What are the other features of Ampleforth?
Geyser
Geyser is a program released by Ampleforth on Uniswap and Mooniswap for yield farming. (You can find our detailed article on Uniswap liquidity pools here.)To summarize the pools in one sentence, in Uniswap, a decentralized exchange, two-compartment pools were being established. Usually, Ethereum's money is ETH on one side of these compartments and a desired token in the other. The aim is to ensure that Uniswap works like a real decentralized exchange by providing liquidity to those who want to trade with this token. In return, those who provide liquidity both get a share of 0.3% from the transactions made and they also earn the UNI token.
In the program prepared by Ampleforth, investors have to lock the liquidity they put in Uniswap to Geyser created by Ampleforth. Ampleforth has pledged to distribute a total of 25,000 AMPL monthly to liquidity providers to encourage this pool. In doing so, the long term In order to encourage you, the longer you keep it, the more you will get from the pool. So if you keep it for a month, if you get x, then 2x for the next month, and 3x per month for the third.
It can be an interesting program due to the extra rewards given. However, if your goal is to earn commission income while providing liquidity for Uniswap pools, then it is useful to look at this pool with caution. Because, in these pools, the best earning value is in binary tokens that are close to each other, or fluctuating. When you think that AMPL is almost a fixed token - at least in theory - you may have commission income while keeping your money in AMPL / ETH token, but in return you may experience losses as a liquidity provider in cases where ETH rises rapidly (the details of how the technique is in the same article. On the other hand, it should not be forgotten that Geyser is a temporary program prepared to increase interest: It ends in November 2020 for Mooniswap and in December 2020 for Uniswap, and it is not clear whether the program will be extended. Therefore, as the long-term amount mentioned in the previous paragraph earns more, as the program approaches the end, the earnings for new entrants decrease.
Balancer "Smart Pools"
Meanwhile, the Ampleforth team built a similar pool in Balancer (Uniswap competitor) last week. Moreover, this product became a brand new category in Balancer. As for why they use Balancer: If you remember, in our article introducing Uniswap competitors, we said that the size of Uniswap pools should be 50% -50%. In Balancer, you can set up pools at any rate you want. The AMPL price in the pool established in Uniswap changes after each supply change, which creates volatility. However, with the newly launched "Smart Pool" in Balancer, Ampleforth Smart Contract was given the opportunity to automatically change the AMPL amount in the pool in parallel with the increase or decrease in the AMPL price. In this way, the AMPL price in this pool will always be closer to the targeted value. This is Ampleforth's AMPL Using it as a stable money will help his vision.
