/biz/ - Business & Finance

In previous eras, they were content to HODL and wait for their assets to appreciate. With the rise of the DeFi movement, people longer have to do this. Previously idle crypto capital can be lent, borrowed and leveraged without the need to sell.

We are in a phase of the crypto movement I call the Search for Yield. Part of this search involves using stablecoins to escape the volatile crypto market, preserve capital and generate passive income. But the Search for Yield has had a negative side effect: A liquidity crisis.

The crypto liquidity crisis may not be obvious to many, but it is demonstrated best in Maker Dao’s struggle to keep Dai at its peg. The rise of yield farming has led to crypto users borrowing Dai at incredible rates in order to chase alpha. Maker has added additional assets, including WBTC which is in high demand. The printers at Tether and USDC are going at full force. But the demand for liquidity is outstripping supply and the most popular stablecoins have serious problems.

Tether is on shaky legal ground. USDC is useful, but it censors transactions, which goes against the Cypherpunk ethos. Dai struggles to stay-on peg and it’s hard to convince users to take loans, which are required to generate Dai. This liquidity criss needs to be solved if crypto is going to grow into a trillion dollar asset class. Some say Ethereum can play this role (along with Dai), but the main issue with generating Dai is that it requires Ethereum users to take loans out on their crypto. Not everyone wants to do this.

>>20351385
What about ETH? Ethereum’s growth (and maximum value capture) requires a successful transition to Eth 2.0, which is far from certain. ETH could grow in value to fuel the ecosystem, but the market is uncertain about whether it should be looked as anything more but (cheap) fuel. Wrapped BTC such as renBTC and WBTC can satisfy some of the demand for liquidity, but again, it’s a slow process to port over BTC value from the Bitcoin chain.

What’s needed is a new asset. Most importantly:

-It must scale with the growth of the crypto market

-It must be uncensorable

-It must be relatively stable

-It must be based on sound money principals


At present, $AMPL meets 3 out of 4 of these criteria. But, its value is not yet stable. And to gain stability, it must scale. $AMPL could be THE asset for crypto’s Search for Yield Era.

History lesson over.

How can AMPL become stable? It is down 75% in 2 days. That is the opposite of stable.

>>20351443
So what is the Ampleforth Protocol?

In simple terms, $AMPL is a protocol that can serve as crypto’s Federal Reserve. Here’s how the Fed works (basically). Currently, the US dollar is the world’s de-facto global currency. Debt, contracts, stocks, bonds … everything — is dominated in dollars. It’s the world’s most trusted currency (for the moment).

This reliance on the dollar led to a problem: There aren’t enough dollars to satisfy demand. And, without dollars the global financial system would seize up. Ordinarily the rush to the dollar (and reliance on it) would cause the value of the dollar to skyrocket against other currencies. That would cause a lot of problems, so the US Federal Reserve prints trillions of dollars to inject liquidity into the market to satisfy global demand.

The Ampleforth protocol can be viewed as an automated Federal Reserve. It is a scalable synthetic currency that is not backed by collateral, only itself, a primitive like Ethereum and BTC. Like the Federal Reserve, the protocol expands when demand is high, and contracts when demand is low.

But, there’s a crucial difference: When the Federal Reserve prints dollars the first beneficiaries are banks. What do bankers do when they get money? They invest it into stocks, bonds and other assets. The Federal Reserve’s money printing has led to an asset bubble where stocks do nothing but go up.

As I mentioned before, the Ampleforth protocol has the ability to inject liquidity into the crypto ecosystem when demand is high, and remove liquidity when demand is low. This is all achieved in a rules-based, automated fashion with no human and political intervention. Unlike the Federal Reserve and bankers, the extra liquidity generated by the protocol (in response to demand) is given directly to $AMPL holders who are encouraged by the protocol’s rules to sell their tokens to the market. This helps transfer liquidity to the ecosystem (and achieve price stability).

>>20351466
The marketcap is very low, it needs to grow substantially for be less volatile.

>>20351522

$AMPL can’t serve as the crypto’s Federal Reserve unless the token has massive liquidity, to the tune of billions of tokens. So, the team has launched liquidity initiatives in order to encourage crypto natives to help grow AMPL’s presence on decentralized exchanges and help the token reach the scale needed to be used in DeFi protocols (through demand-fueled price inflation).

Demand for AMPL is high. The AMPL/WETH liquidity pool is currently Uniswap’s largest, and is generating huge fees for liquidity providers. Right now, like Bitcoin, $AMPL is very volatile. This is because the market cap for the token is low. Because AMPL delivers liquidity to token holders rather than bankers, people have gotten distracted from AMPL’s true purpose: Becoming the People's Decentralized Federal Reserve.

So, what’s up with this “free crypto” that people are so excited about?
Think about it in the terms of price appreciation.
When Bitcoin’s price rises, all token holders benefit from higher USD prices.

With $AMPL, when demand is high (people want to buy the token), instead of price skyrocketing (because of the protocol’s focus on keeping the price of the AMPL token relatively stable), the token’s supply is inflated.

So, capital injected into the protocol does not increase the price, it increases the supply. In other words, demand energy is channeled away from price appreciation toward supply appreciation.

>>20351466
We are 41% down from all time high in marketcap.

If you are this kind of stupid anon you are not gonna make it.

>>20351597
Here’s another way to look at it: holding AMPL is no different from owning Bitcoin when it rose from $1000 to $10,000. But, instead of price gains, holders enjoy supply gains. The AMPL protocol is only re-directing capital’s energy from spiking the price (which only helps holders), to increasing the token supply (which can help redistribute capital to other sectors of the crypto economy).

This is just like capital provided by the Federal Reserve is expected to go from banks to other sectors of the US economy. The plan is for the $AMPL token to reach a large enough size to be integrated into exchanges, lending products, etc. And the team has launched liquidity initiatives, that are no different (in spirit) from other bootstrapping efforts, to do so.

So to sum up:
-What is $AMPL aiming to become?: A decentralized People's Federal Reserve that can solve crypto’s liquidity crisis with a non-censorable, sound (non-dillutable) currency.

-What is the end goal?: To replace Tether writing with $AMPL printing.

-Why do holders receive new supply?: When demand is high, instead of encouraging holders to hoard tokens, which leads to supply shocks, they are encouraged to sell surplus $AMPL for crypto assets that can be re-directed to other parts of the crypto economy, not stuck in wallets

As you can see, $AMPL is NOT a Bitconnect promising unsustainable ponzi-like gains.
The Ampleforth Protocol is aiming to be the People’s decentralized Federal Reserve.
The perfect asset for the Search for Yield Era.

>stable currency
>its not stable
>normies will stay away
>it needs to grow to not be so volatile
Explain to me why this would ever be adopted by the masses

>>20351743

because there is a metric fuckton of profit to be made on the way there? It's incentivized to add liquidity currently, the market cycle works like clockwork, if you're not proffiting off it you're a brainlet.

>>20351743
it's NOT a stablecoin, it serves other purposes, read whitepaper

>>20351743
explain to me why it would even stop being volatile when it grows..
AMPL is the most retarded idea in crypto since HEX. if you put your money into it in a sense of a stable coin, you are basically betting on it staying at the exact same market cap for some reason.
If you invest in it to make money you are assuming market cap will go up, just like with any other crypto.
also this thing can bounce between .95 and 1.05 afaik without any adjustments, how retarded is that?

Rank 1 - 1.0% of total supply, AMPL balance: 1307394, price: $2039534
Rank 2 - 0.5% of total supply, AMPL balance: 653697, price: $1019767
Rank 3 - 0.25% of total supply, AMPL balance: 326848, price: $509884
Rank 4 - 0.125% of total supply, AMPL balance: 163424, price: $254942
Rank 5 - 0.0625% of total supply, AMPL balance: 81712, price: $127471
Rank 6 - 0.03125% of total supply, AMPL balance: 40856, price: $63735
Rank 7 - 0.015625% of total supply, AMPL balance: 20428, price: $31868
Rank 8 - 0.0078125% of total supply, AMPL balance: 10214, price: $15934
Rank 9 - 0.00390625% of total supply, AMPL balance: 5107, price: $7967
Rank 10 - 0.001953125% of total supply, AMPL balance: 2554, price: $3983
Rank 11 - 0.0009765625% of total supply, AMPL balance: 1277, price: $1992
Rank 12 - 0.00048828125% of total supply, AMPL balance: 638, price: $996
Rank 13 - 0.000244140625% of total supply, AMPL balance: 319, price: $498
Rank 14 - 0.0001220703125% of total supply, AMPL balance: 160, price: $249
Rank 15 - 6.103515625e-05% of total supply, AMPL balance: 80, price: $124
Rank 16 - 3.0517578125e-05% of total supply, AMPL balance: 40, price: $62
Rank 17 - 1.52587890625e-05% of total supply, AMPL balance: 20, price: $31
Rank 18 - 7.62939453125e-06% of total supply, AMPL balance: 10, price: $16
Rank 19 - 3.814697265625e-06% of total supply, AMPL balance: 5, price: $8
Rank 20 - 1.9073486328125e-06% of total supply, AMPL balance: 2, price: $4

>>20351466
it will be stable when reaching 2-3B market cap, easy

>>20351697
what happens when the demand is low?

>>20351443
Just buy rune liquidity solved no need for ample

>>20351697
>-What is $AMPL aiming to become?: A decentralized People's Federal Reserve that can solve crypto’s liquidity crisis with a non-censorable, sound (non-dillutable) currency.
This sounds like an extremely vague goal, and it sounds like what countless other shitcoins are trying to do.

>>20352030
I have had a stack since last week you fucking mong, I asked why it would ever be adopted by the masses and your answer was hurr durr because you can make the moneys off it hurr, that's exactly my point, normies don't understand the tech behind this and will see it purely as a stable coin that isn't stable and most likely stay away from it, so, care to try again?

Remember: you can at minimum double your AMPL if it is over $1.10 for 70 days.

>>20351531
every coin says this, but it is never true. there is no marketcap big enough to protect against volitility

>>20351466
Long term price goal is $1.

>>20351376
You do realize everyone knows exactly how good this is and that's why they are talking shit and misinformation constantly? Don't be naive.

Great post

>>20352412
Because overall crypto market cap is still low

>>20351376
rebase is just a buzzword to make idiots FOMO in; debase doesn't change the MCAP and you AMPLfags go on about only the MCAP represents your wealth.

rebase is BS

>>20352412
Volatility is always there but you will never see bitcoin 10x in marketcap in 5 days.

P.S. it's not a stablecoin, devs already reinstated this. This a speculative asset.

>>20352379

Normies will adopt it AFTER we have made the money on it you utter nonce.

It will continue to pump and the MC grows while there is the liquidity incentive. Anyone with more than two brain cells continues to ear profits during this period. Once it reaches it's potential (see in the several billion dollar market cap range) it will be more stable. Then it gets adopted into DeFi - think many integrations, COMP etc.

Then it's a huge MC, and then eventually normies will start using it once it's stabilized.

>>20352091
ngmi

>>20352091
good question. also i was wondering if you lock like 1$ (1 ampl) in a smart contract, if the marketcap dumps, what will happen? you'll have less than 1 ampl, and so less then 1$?

>>20351466
it's supposed to be stable around 1$. The harder it soars above that, the harder it will crash down.

Only people who got rekt, are the ones who sold above $3 and panic selled this morning. That is literally doing it wrong and being a retard

>>20352496
yeah it just doesnt make any sense at all.
i dont even know what this project is supposed to be. its not less volatile as anything else, never will be. its not a stable coin. the fact that deflation can occur anyday makes it hard to use for a lot of purposes. this is just the dumbest shit i have ever seen.
ill stay with LINK + BNT + DMG
and DAI, sUSD and RSV as stable coins.

But $AMPL is not more stable than any other coin. If you hold it your stack increases and decreases according to the price. It might help soften price movement but you still feel everything as a holder.

This is NOT a stable coin or even a 'less stable coin'

No one ITT mentions the real usecase: as an alternative crypto with no price linkage to BTC. Which has been the case so far if you look at https://www.ampleforth.org/dashboard/correlations

Whales and hedge funds will use it to diversify their portfolios. Top 5 within 1 year.

>>20352762
this, so much this

>>20352762
LINK also has no price linkage with BTC, this is why it always gangbangs BTC.
Yeah, i will stick with LINK, have fun with your AMPL

>>20352884
BS you can add LINK in the heatmap comparison and see how it's still correlated to the rest of the coins

>>20352884
link is, uhm, linked, to eth.

>>20352929

There is a lot of fud and there will be more because I’m accumulating now fuck off and fomo at 1b

>>20351597
>With $AMPL, when demand is high (people want to buy the token), instead of price skyrocketing (because of the protocol’s focus on keeping the price of the AMPL token relatively stable), the token’s supply is inflated.
If the end goal is a stable coin then why would I buy this at all
>>20352078
>it's NOT a stablecoin
>because of the protocol’s focus on keeping the price of the AMPL token relatively stable
ok which one is it then.

>>20352581
>it's supposed to be stable around 1$. The harder it soars above that, the harder it will crash down.
>Only people who got rekt, are the ones who sold above $3 and panic selled this morning. That is literally doing it wrong and being a retard
>sold above $3
What? How would you buy this and profit unless you sold above the stable coin price of $1?

>>20352929
why are you lying you fraudulent piece of shit?
LINK has no correlation with BTC, just like AMPL, which means AMPL loses his one and only use case, which means a proper market cap valuation of AMPL is maybe $5.
At least the price will stabilize around $1, with 5 tokens, have fun, topkek.

>>20352965
stop cherrypicking data.

>>20352973
How do you accumulate a coin with supposedly infinite supply?

Ampleforth / AMPL

BeeHive is essential?

Collecting compound is important in growing the stack... (Patience)?

DeFed needs a currency...
Am thinking that the Reserve is the intended currency?

- Dont have a fat stack of Ampl as of yet.
- Compounding what I have is a must.
- Plan on cashing out rewards every once and a while to purchase Reserve notes.
-Ample Stake isnt going anywhere...

Thoughts IQ?

This project is incredible...
I trust institutional investors are watching AMPL?
Chart watchers are going to miss out on a once in a lifetime opprotunity...

Join the BeeHive...
Watch your stake on Zapper.fi
It'll all make sense!!!

>>20353242
Kek

>>20351376
I really wish there was a line graph feature to look at the number of holders on etherscan. while I slept DMG gained from 6202 holders to 6208 while ample gained from 5308 to 5488. seems like ample has a lot of traction but for the number of holders 100+m marketcap is kinda inflated. Hex has a 800m marketcap and around 170,000 holders.

>>20353242
uhm.... eh......... ngmi, yeah

>>20352762
there is still a price linkage to BTC. As the price of BTC goes up, price may still stay low but your stack goes up. Same for on the way done.

It has complete correlation - the only thing not correlated is the USD price for each of their coins but it means nothing since the amount of coins you holds changes according to market cap

>>20353236
your browser is literally bugged. reload and try again brainlet

Fiat Federal Reserve is a Ponzi.
Crypto Federal Reserve is a Ponzi too

>>20353319
no linkage to BTC due to the unique rebase algo.

Where can you even buy this piece of shit

>>20353388
>20353388
Eth on uniswap...
Stake in the BeeHive

CryptoFrog on youtube has detailed info on how to hop on board

>>20352091
It will have thousands of traders pushing it towards $1 from both ends and if they do not keep it stable someone else will and that trader pays opportunity cost.


When it reaches maturity Rebases will become rare event and it will be housing billions of dollars in collateral like dai. But obviously biz will buy high (supply) as always.

>>20353495
Reaching maturity is a road paved with at *least* two years of constant rebases as the market cap grows. IMO we won’t see a debase happen unless trump gets killed or there’s an alien invasion. For the smoothbrains it means there will be “moon missions” and dumps along the way but the trend will be upwards. Anyone holding ampl for two years will be able to sell all of their $1 AMPLS for a lot of money.

>>20353647
How much money are we talking about mcap wise??

>>20353727
I took a 20% hit on my Amp/Eth Uni stake when AMPL dropped 40%... with a markey cap of 150ish million... When she has a cap in the billions that 40% dip would be less that 10% loss in stake?

>>20353388
Uniswap

>>20351376
>how AMPL bagholders actually think