Bobos & Wojaks

Get rich or die tryin

Ampleforth’s Decentralized Stable Coin ($AMPL), – Quixplained

  • How does it work?

The way it works is crucial to understand if you want to invest in it. The price doesn’t change much, but the token’s supply does. It is with this, tweaking the supply, that they can guarantee the relatively stable price.

AMPLE translates price-volatility into supply-volatility. The quantity supplied, and held in users’ wallets can automatically increase or decrease. When the price is over $1, the number of tokens in wallets increase proportionally, and when it is below $1, they decrease proportionally.

This is called “rebasing” which happens once a day. What’s great is that when the AMPL system grows, you automatically get more AMPL even though the price remains stable around $1. (AMPL is non-dilutive. Supply adjustments are applied universally and proportionally across every wallet’s balance. This means your percent ownership of the network remains fixed.)

  • Use cases

“AMPL is like Bitcoin except it can be used in contracts”

Let’s say you borrow a Bitcoin in order to purchase your car, worth 47 000$.Now you are indebted to the creditor who you borrowed 1 BTC from, and owe at least that much back. A couple months later, with the price hovering around $57 000 at the time of writing, it almost would be unfair to you to pay the same 1 BTC back when it has escalated in value. Well that’s exactly what AMPL can fix for you.

  • Now for the terms

The unique incentives, movement pattern, and monetary qualities of AMPL, make it ideally suited for the following terms

-Near term To diversify cryptocurrency portfolios

-Mid term As reserve collateral in decentralized banks

-long term An alternative to central-bank money that is adaptable to shocks.