Ample token (AMPL) that was developed by Ampleforth is a new synthetic commodity that was created for risk diversification. The coin is an ERC-20 token created on the Ethereum blockchain. It is designed to resist price correlation with traditional assets and the most famous cryptocurrencies such as Bitcoin. This digital currency is a kind of adaptive money that depends upon market conditions.
The project was created by Evan Kuo who studied mechanical engineering and computer science at UC Berkeley. He worked previously as CEO in the company Pythagoras Pizza that became known after it tokenized its franchise to acquire the same economic mobility as tech startup teams. In this way, the employees of the company, its clients, affiliates, third-party delivery drivers could earn tokens performing small tasks for the company thus earning its share in it. This approach attracted the attention of investors from Pantera Capital who introduced Evan to Brandon Isles, a former employee of Uber and Google.
Ampleforth tries to establish itself as a denationalized currency of the world that would compete against national currencies. It would make governmental bodies increase the quality of national currencies not to lose citizens that use them. In the opinion of the project’s founder, it’s necessary to develop the next generation of synthetic commodities to make it real. They contribute to the creation of an independent new asset class to diversify portfolios of investors.
The mechanism behind the AMPL token
The coin was developed by Kuo and Iles with the help of specialists from the Hoover Institute who helped them to write a whitepaper. The model for the coin was the theoretical currency Ducat offered by the philosopher and economist Fredrich Hayek.
The founder of the project considers that it’s easier to redesign money than attempt to redesign the banking system. It is easier to understand the technical mechanism behind the cryptocurrency than to understand its essence.
The main feature of AMPL is the adjustment of supply and demand. The supply grows when the demand increases and, on the contrary, decreases when the demand subsides. The scheme was developed for preserving purchasing power despite economic pressure. Some people confuse the notion of adaptive money with stablecoins which is wrong, although it pursues the same goal as stablecoins. Also, the coin is not backed by USD and doesn’t have locked assets.
Ampleforth has developed a decentralized finance protocol for smart commodity-money. The platform tries to create an ecosystem with partnerships and rapid community growth. It’s interesting to mention that the coin isn’t pegged to the current dollar as stablecoins are, but is pegged to its rate in 2019. Otherwise, its value would be lower. Taking into account inflation, the AMPL token presents a higher value than stablecoins that are pegged to the US dollar, which suffered from inflation (2-3% loss in purchasing power compared to the USD average rate in 2019).
To attract liquidity to the platform, Ampleforth Geyser was launched in cooperation with Uniswap. The users are rewarded for their deposits in AMPL tokens into the Uniswap protocol. The amount of return depends upon the amount of the tokens and the duration of your participation in the program. It was launched on June 24th, 2020, for a period of three months that can be extended in case of necessity. At the time of writing, the period of duration hasn’t been defined yet. However, the team and the founder of the platform are satisfied with the results of this experiment and its efficacy.
The company is often audited to discover issues and vulnerabilities in the source code of smart contracts. Ampleforth regularly applies to CertiK’s formal verification platform for a comprehensive examination. The codebase is also accessed to ensure compliance with the best practices of the industry. Smart contract engineers make a report to ensure proof of stability and come up with recommendations to address the issues discovered.
ICO, IEO, and financial details
The modification of the Ampleforth supply occurs daily so that the supply could meet demand. The smart contract employs trusted oracles such as Chainlink price oracle, proprietary Ampleforth oracle. With their help, it obtains prices from Bitfinex and Kucoin to see if the average market price of the coin remained within a certain price range that specialists name an equilibrium range. The deviation shouldn’t exceed 5% of a US dollar. Thus, the price shouldn’t be lower than 0.96 USD and shouldn’t exceed 1.06 USD. The results received from these checks affect Ample’s market capitalization.
Ampleforth conducted an ICO twice in 2018 and IEO that took place on the Bitfinex exchange in June 2019. Though ICOs were successful (3 million USD and 1.75 million USD), the IEO was even more so. It achieved the record-breaking results as AMPL tokens were sold out within 11 seconds and brought 4.9 million USD to the company. It was necessary to be KYC-compliant for the participants. In total, the company managed to raise 10 million USD (from ICOs and IEO). The investors of the platform include Pantera Capital, Brian Armstrong, Huobi Capital, and others.
Those who want to buy AMPL can apply to the cryptocurrency exchange. In particular, such platforms as Kucoin and Bitfinex offer these digital assets. AMPL tokens can be stored on any wallet that supports Ethereum as this is an ERC-20 token. If you want to use hardware alternatives, it’s better to regard Trezor or Ledger that are considered to be the most secure hardware wallets. Among the software wallets, such options as web Exodus Wallet, a desktop and mobile MyEtherWallet, and Trust Wallet can be recommended.
Apart from the CEO Evan Kuo and Brandon Iles mentioned above, it’s also worth noting such members of the team as Ahmed Naguib Aly, a backend developer and engineer, a former Google employee, Nithin Krishna, a backend developer and engineer, who previously worked as a research engineer at the IRDS/IMSC labs.
The team includes academics, engineers, investors, and mere enthusiasts of the idea who graduated from MIT, Harvard, Yale, and Stanford. The project is supported by Brian Armstrong, Huobi and Coinbase CEO who studied with Iles and Pantera Capital mentioned above.