{"id":196498,"date":"2021-08-24T17:00:26","date_gmt":"2021-08-24T16:00:26","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=196498"},"modified":"2021-08-25T13:50:53","modified_gmt":"2021-08-25T12:50:53","slug":"ampleforth-ampl-founder-there-is-a-solution-to-the-decentralized-stablecoin-dilemma","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/ampleforth-ampl-founder-there-is-a-solution-to-the-decentralized-stablecoin-dilemma\/","title":{"rendered":"Ampleforth founder: There is a solution to the decentralized stablecoin dilemma"},"content":{"rendered":"

As the US dollar devaluation becomes a hot topic, <\/span>CryptoSlate<\/span><\/em> talked to the founder of the \u201crebasing cryptocurrency\u201d designed to fight the inflation curse.<\/span><\/p>\n

Ampleforth (<\/span>AMPL<\/span><\/a>) is a protocol running on the Ethereum (ETH<\/a>) blockchain that incentivizes a network of users to maintain a cryptocurrency with a value that is cycling around $1.<\/span><\/p>\n

Maintaining the price stability<\/strong><\/h2>\n

\u201cWe created AMPL to be an indestructible unit of account because we realized early on that the algorithmic stablecoin approaches were very fragile, Ampleforth\u2019s founder and CEO Evan Kuo told <\/span>CryptoSlate<\/span><\/i>, adding that \u201cthe graveyard of failed decentralized stablecoins\u201d already proved this to be true.<\/span><\/p>\n

Due to its method of maintaining price stability, AMPL differs from <\/span>stablecoins<\/a> that rely on deposits or debt issuance and redemption.<\/span><\/p>\n

Designed to be elastic and non-dilutive, the protocol adjusts the supply of AMPL every 24 hours in a process called \u201crebasing,\u201d with anyone who owns tokens seeing the balance in their wallets change every day at 2:00 UTC.<\/span><\/p>\n

The protocol must know the price of AMPL and whether it has diverged from the US dollar, in order to correctly adjust the supply, meaning that if the price rises above the target, the total supply increases, and if the price drops below the target, the supply shrinks, with users always retaining the same proportion of the overall cache.<\/span><\/p>\n

\u201cMoving forward we\u2019ll see methods of separating AMPL\u2019s price volatility from its supply volatility,\u201d said Kuo, adding that \u201cthe first real taste of this is AMPL on <\/span>AAVE<\/span><\/a>, but there\u2019s far more to come, and it will undoubtedly shape the way folks are thinking about application design moving forward.\u201d\u00a0<\/span><\/p>\n

\n

$AMPL<\/a> on $AAVE<\/a> is officially LIVE!! ??#Ampleforth<\/a> Rebases everyday at 2am UTC ?
(10pm EST) pic.twitter.com\/YERxdg8V6Y<\/a><\/p>\n

— Ampleforth #AMPL (@AmpleforthOrg) July 24, 2021<\/a><\/p><\/blockquote>\n