Ampleforth integrates with Avalanche to introduce a stablecoin alternative


Fragments Inc., the team responsible for developing the Ampleforth protocol, has announced that Ampleforth will be integrated into the popular Avalanche blockchain to facilitate the adoption of AMPL, a fully decentralized unit of account that can be used to name stable contracts.

The Ampleforth protocol promises to be a decentralized alternative to stablecoins, which can be used in core functions in the DeFi area such as lending, borrowing and the use of on-chain derivatives.

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Ampleforth’s rebasing mechanism of daily adjusted supply levels enables the metric measurement of the price value for users’ token accumulation, as opposed to the traditional price-tracked volatility method. These systemic rules are then encrypted on Ethereum via smart contracts.

For example, if a user speculatively predicts that Bitcoin (BTC) will reach $ 100,000 by the end of the year and proves it to be true, they will be granted 5 AMPL tokens. However, if the leading asset is below the stated target, five tokens will be withdrawn. With this in mind, as the AMPL ecosystem grows, the user will get more tokens and vice versa.

Establishing reliable consistency in price level and fluidity in the supply mechanics, while at the same time being an uncontrolled decentralized model, implies that AMPL could represent an alternative challenger to the hackneyed stablecoin model.

Related: Cointelegraph Consulting: How Avalanche Reinvents DeFi

Evan Kuo, CEO of Fragments Inc., spoke about the importance of true decentralization in DeFi’s burgeoning ecosystems:

“It’s ironic that the DeFi ecosystem is so heavily reliant on centralized stablecoins for liquidity and credit security right now. Given the changing regulatory landscape and the uncertainty about how the verdict on stablecoins will turn out, it is important for DeFi to have a financial building block that is decentralized, uncensored and has some aspect of price predictability or stability. “

At the end of December 2018, the Fragment Protocol renamed its identity to what we know today as Ampleforth. The title is inspired by a poetic character who works at the Ministry of Truth in George Orwell’s classically acclaimed novel 1984.

Analytical data from Cointelegraph Markets Pro and TradingView show that Avalanche’s native token, AVAX, has seen an upward momentum over the past seven days, rising 28% to $ 71.30.

According to DeFi Llama specs, the blockchain network is home to 52 decentralized protocols totaling $ 8.62 billion (TVL), with the largest trader being Joe who accounts for 30% of his market share.

Avalanche’s TVL count has risen significantly since early August, when the company traded around the $ 200 million mark in consolidation.