FAQ

What is Ampleforth?

AMPL is a durable, fully-algorithmic unit of account. The Ampleforth protocol is a series of Ethereum smart contracts that transfers the volatility of demand from price per token to the number of tokens in user wallets by automatically adjusting supply in response to demand. Daily supply adjustments are automatic and non-dilutive.

Why Ampleforth?

Price volatility prevents modern day cryptocurrencies from functioning as units of account. This function of money is incredibly important because it enables the denomination of predictable contracts. Such contracts serve as fundamental building blocks of our financial system today. Creating a viable alternative to traditional finance requires a decentralized unit of account.

What are the Use Cases of AMPL?

AMPL can be used for long-term contract denomination. This capability propagates into a number of use cases including lending, borrowing, and the creation of derivatives.Lending & Borrowing The simplest AMPL use-case is lending & borrowing. Typically when a person borrows money they intend to put that money to work immediately and then pay the money back at a later date with interest.

Why isn't AMPL a Stablecoin?

AMPL can be used as a long-term unit of account, but the asset should not be thought of as a stablecoin. Although contracts denominated using AMPL are long-run stable, gains and losses that arise from holding AMPL are similar to that of a typical floating price tokens.

Who is Using Ampleforth?

In addition to pooled wallets on centralized exchanges, at the time of writing AMPL is held in over 28K on-chain wallets. For up to date metrics check the Etherscan contract. AMPL is available for use on AAVE the world's largest largest DeFi lending platform. An AMPL derivatives platform is currently being developed by Prometheus Research Labs, please see their documentation for information on this.