Chainlink Powering Ampleforth Protocol to Improve Upon BTC as a Reserve Currency

Place/Date: San Francisco, USA - December 9th, 2019 at 2:01 pm UTC · 3 min read
Contact: Ampleforth, Source: Ampleforth

Ampleforth announced today that it will be the first monetary asset to use Chainlink oracles to aggregate secure and timely off-chain pricing data for its protocol. Through the Chainlink integration, Ampleforth’s Market Oracle (volume-weighted price) and CPI Oracle (current price target) will now be powered by nine different incoming price feeds from three different aggregators, which act together to determine the magnitude of AMPL’s supply adjustment every 24 hours.

Evan Kuo, Co-Founder and CEO of Ampleforth, said:

“The incorporation of outside data is what allows us to improve upon things like Bitcoin and gold. While Bitcoin emits according to a fixed supply schedule, AMPL’s are countercyclical and seek price-supply equilibria. Critical to that function is the ability to detect and react to market price automatically.”

The Ample is a commodity-money, like Bitcoin or gold, but with near-perfect supply elasticity, like fiat. The token utilizes an elastic supply policy to address the deflationary problems of natural commodity-monies by automatically increasing or decreasing the quantity of tokens held by each user, based on the previous day’s average price.

Kuo explains:

“Fixed supply monies like Bitcoin or gold are great because they’re immune to political tampering and runaway inflation. Unfortunately, they’re also vulnerable to runaway deflation. The key question to ask is: can we create non-dilutive money that automatically adapts to economic shocks, without a discretionary authority. And the answer is yes.”

AMPL’s rely on accurate market oracles to inform the supply adjustment of its token. It does so by leveraging pricing data from the protocol’s Market Oracle (24-hour Volume Weighted Average Price) and a CPI Oracle (the current price target, a metric measured by the Personal Consumption Expenditure from the Bureau of Economic Analysis). With Chainlink, Ampleforth’s Market Oracle will be supplied with the daily 24hr VWAP of AMPL/USD across three different aggregators (BraveNewCoin, Kaiko, CryptoCompare) and two upcoming. Currently, Ampleforth’s markets include:

  • Kucoin: AMPL/BTC, and AMPL/USDT
  • Uniswap: AMPL/ETH
  • Bancor: AMPL/BNT

Sergey Nazarov, Co-Founder of Chainlink, said:

“Ampleforth represents a unique innovation in monetary assets. We’re excited to help keep the Ampleforth protocol operating securely by connecting their on-chain contracts with critical off-chain market data. This integration shows how smart contracts pegged to real-world data feeds can revolutionize the way we create and use monetary instruments.”

Smart contracts are corruptible through inaccurate and slow data. Chainlink solves this problem by connecting smart contracts to the real-world via a secure, decentralized network of oracles that ensure relevant and accurate data is fed into the ecosystem. Ampleforth is tapping into Chainlink’s network as a source of price and CPI information for its elastic supply protocol, which ultimately improves price discovery and further decentralizes the asset.

Please find more information about Ampleforth’s Chainlink integration here.

About Ampleforth

Ampleforth is a digital asset protocol for smart commodity-money funded by Brian Armstrong, True Ventures, Pantera Capital, and Slow Ventures. Linked here you’ll find a short video that explains what an AMPL actually is.

About Chainlink

Chainlink is a decentralized oracle network that enables smart contracts to securely access off-chain data feeds, web APIs, and traditional bank payments. Chainlink is consistently selected as one of the top blockchain technologies by leading independent research firms such as Gartner. It is well known for providing highly secure and reliable oracles to both large enterprises (SWIFT) and leading smart contract development teams. Learn more by visiting the Chainlink Twitter or Telegram. If you’re a developer, visit the developer documentation.