Ampleforth is a synthetic commodity cryptocurrency that is an advancement of the stablecoin concept as it is not pegged to a fiat currency or underlying asset but instead aims to achieve price stability by algorithmically increasing and contracting token supply among holders depending on demand.
This elasticity in supply replicates the flexibility of traditional central banks to control the amount of fiat currency in circulation to achieve a desired economic effect. However, the decentralised nature of Ampleforth’s protocol means the circulating supply of AMPL is determined by the average daily price movement of the token and not a centrally planned monetary agenda.
It is suggested that instead of merely recreating fiat on the blockchain as most other stablecoins, this price-to-supply equilibrium model can ultimately provide low volatility as well as making AMPL immune to both runaway inflation or deflation – something which fiat currency-backed coins, at the mercy of central bank policy, cannot claim.
Ampleforth – named after a character in George Orwell’s classic dystopian novel, 1984, who translated inspiring poetry into politically-acceptable newspeak – have previously received funding for their project from several venture capitalists including Pantera Capital, True Ventures and Coinbase CEO Brian Armstrong.
At the end of last year, Ampleforth became the first monetary asset to integrate with Chainlink’s oracle in order to provide the real-time information necessary for the smart contracts to execute upon the token pricing data.
Kyber Network, who recently announced a forthcoming major protocol upgrade in response to the rapidly evolving decentralised finance (DeFi) ecosystem, support over 70 different tokens and around 100 blockchain-based projects including popular wallets such as MEW, Trust, Argent and Enjin.
Speaking on the listing of AMPL, the CEO of Kyber Network, Loi Luu, said “The AMPL token is a great addition to meet the liquidity needs of our DApps and end users as our protocol continues to become a key liquidity layer for DeFi and the decentralised economy.”
Brandon Iles, Co-founder of Ampleforth, commented that, “Kyber is one of the biggest projects in DeFi and we’re excited to help grow the community through diversification with emerging novel monetary economics.”
In joining Kyber’s Network, Ampleforth believe they “…can help drive liquidity in the DeFi ecosystem with digital assets that are in lower correlation with bitcoin and floating price assets today.”