The launch of the FORTH governance token is an important step for the project’s path toward decentralization. The announcement post describes the basics, but I wanted to expand a bit on how we currently think about governance and where we see it going in the future.
Why FORTH and why now?
The first post on governance was in the Summer of 2019, and our philosophy has still remained largely the same — the best form of governance is not needing any governance at all. And when governance is needed, its surface area should be kept as minimal as possible. …
A critique of the Ampleforth protocol I’ve seen lately, originating from projects who view themselves as competitors, is that Ample isn’t composable. What does that mean?
There are a few ways to interpret this critique. The boring and pedantic way is to reduce composability to the letter of the law — that is, to examine whether a project adheres to standard specification-definitions. A more enlightening way is to look at the spirit of composability and how it helps us build the future of finance. I’ll cover both.
The notion of composability comes from the concept in software engineering circles of…
The new AMPL/USDC smart pool jointly developed with Balancer removes most impermanent loss normally incurred by liquidity providers on other AMMs like Uniswap. This will demonstrate how Ampleforth is a compelling crossover currency between the worlds of floating-price tokens and stablecoins, and thus a compelling base trading pair on AMMs.
Ample, the fast lane on the liquidity superhighway.
You can find the AMPL/USDC smart pool here.
Liquidity providers incur ‘impermanent loss’ when the values of the assets within the pool deviate from one another. …
The Ampleforth Roadmap recently described AMPL as a monetary innovation and building block for the future of finance that aims to be a cross-chain value highway. Borrowing and lending is fundamental to this future, and AMPL exhibits unique properties that make it an attractive asset for this. Money markets built upon elastic assets enable borrowers and lenders to take advantage of safe debt-denomination and collateral diversification. This post breaks down how.
Ample borrows like a stablecoin
Today we’re happy to announce that Ampleforth (AMPL) is now open for trading on DeversiFi! There are a few things that make this a special milestone.
DeversiFi is a non-custodial exchange platform, based on the 0x protocol. This means you can trade directly with the security of your own wallet and the trade settlement happens onchain.
One big challenge of Decentralized Exchanges (DEXs) is achieving deep liquidity. Since the fees have traditionally been higher for DEXs, it’s been tough for these decentralized alternatives to compete with centralized ones.
DeversiFi, however, shares liquidity with Bitfinex. This guarantees that you’ll see the…
AMPL is already used as collateral for margin trading on our biggest centralized exchange partner, Bitfinex (along with Tezos, Stellar, and Cosmos), but we’re super excited to also lend our support to the DeFi community.
If you’re a Compound user, vote for your favorite project (😉) to help us with this mission!
If you’re new to Ampleforth and want to read more about the protocol, check out our One…
Why does Ampleforth need contraction? What if — get this — Ampleforth only expanded?
The rest of this post is going to talk about the long term state of the project. Remember: in the short term, well before there’s a possibility of becoming any kind of global base money, we expect AMPLs to be useful because of its unique price movement pattern in the marketplace. Both expansion and contraction are obviously important elements there and that’s covered thoroughly in the whitepaper.
First, what are the goals of effective monetary standards? It’s more than just stability of currency purchasing power.
Ampleforth was created with the mission to create fair and politically independent money. We believe these two qualities mean, as much as possible, reducing or removing the discretion afforded to any individuals or special classes of users.
To that end, let’s look at where discretion exists in the Ampleforth protocol today, how it’s currently managed, and how that management could evolve with the community over time.
As a quick refresher, there are three…
When people think of Stablecoins, they have something very specific in mind. A Stablecoin is meant to remove volatility. A Stablecoin is something you can use for payments. A Stablecoin is something you could use as a base trading pair on an exchange or as a refuge from positions in other digital assets. A Stablecoin is a stand-in for the dollar on the blockchain.
While Amples may be used for such tasks at some point in the far future, they are absolutely NOT stablecoins today. (And that’s OK!) Here’s why…
A Stablecoin removes volatility
Ampleforth does not try to remove…