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What Is AMP (AMP) Protocol?

UTC by Oluwapelumi Adejumo · 5 min read
What Is AMP (AMP) Protocol?
Photo: Amp / Medium

Amp protocol has become the first project that provided staking collateral and maintaining custody for their assets for the network users. Find out more about it in this guide.

Amp (AMP) is an open-source collateral Ethereum-based protocol that provides immediate, verifiable assurances for any transfer. It is possible to secure transactions with Amp for different use cases. Amp was developed to allow decentralized collateralization of cryptocurrency transactions. Collateralized AMP tokens are being released when consensus for a particular transfer is achieved. It ensures value while the transaction is incomplete. AMP token prioritizes security and reversibility. AMP can be bought and sold for fiat currency or other digital currencies.

AMP’s framework introduces new opportunities to improve the speed and security of asset transactions across a vast set of financial use cases, including payments, exchange, lending, remittance, and more. AMP is also asset-agnostic. Amp’s feature set is universally compatible with any form of value transfer, digital or physical, and can therefore be used to facilitate instant, irreversible transactions for any asset. The token is bought, sold, stake, and used for transactions on platforms that accept it.

Development of Amp Protocol

The credit for the development of the Amp protocol goes to the Flexa team that worked together with the ConsenSys team to implement the project. Tyler Spalding, CEO of Flexa, informed that the team worked over the platform for half a year to fully understand the value of innovations implemented on a large scale.

The token was launched in September 2020.

The projects can use Amp to protect their transactions and create networks that can initiate and implement transfer immediately and without interruptions. The token is decentralized, so the potential for integrating new assets and value transfers is huge. Ordinarily, Amp was designed for creators and curators to reward their content.

Amp’s primary mission and goal are to alleviate innovations in the lending sector of the decentralized industry. Besides, it aims to facilitate, enhance, enable speedy, instant, secure, and irreversible transactions, specifically for those whose businesses adopt Amp or have AMP tokens integrated into their payment method’s payment method.

Amp’s Milestones

Following its development, the AMP token has continued to reach milestones and see growth. This is not peculiar to its price, only in terms of institutional support, which contributes to the cryptocurrency’s price.

Since its launch, several businesses have added AMP among tokens acceptable for payment because of its potency to perform or offer instant, speedy, secure, and irreversible transfers. Listings on many exchanges are also part of its milestones so far.

One prominent partner of AMP is Flexa, which uses AMP as the fundamental collateral token to secure retail payments within its network. Others are ConsenSys, Coinbase (NASDAQ: COIN), Gemini, Bittrex,  Poloniex, Balancer, Dodo, Shishi, UniSwap, Bancor, Conflux, Cream, Flashstake, Moonswap, Loopring, Zapper,  zKSync, Chainlink, and Coingetto, Gemini.

Flexa is a merchant payment network designed to enable the universal acceptance of digital assets. It is able to authorize instant and fraud-free transactions at a net cost less than interchange. In addition, Flexa integrates natively with existing point of sale (POS) systems and online platforms to enable payment in a typical check-out expertise. Further, Flexa network SDK is permissionless. Mobile wallets or applications can create unique, interoperable authorization codes for transfer.

Flexa contributed to the development of AMP. It integrates AMP token to demonstrate its unrelenting commitment to DeFi and to build new technologies that will democratize access to payments for people worldwide. AMP token is the primary collateral for securing all transactions on a pure-digital payments network.

Tech Basics of Amp Protocol

The technological basis of Amp is in its simplicity and transparency of financial primitives such as fixed supply and rudimentary staking mechanism. It is devoid of sophisticated tools, rebasing mechanisms. Complex algorithmic models are not at the core of its technology either. Instead, the emphasis is on reliable collateral of a high quality that features self-sustaining parameters to create a better utility. Amp offers a simple yet universal interface for verifiable collateral across collateral sections and collateral managers. While sections can be assigned to any account, application, or transaction, and for transfers directly verified on the Ethereum blockchain, managers provide smart contracts that can block, release and redirect collateral in those sections as needed to support the transfer of value.

AMP Token

Amp is the new digital collateral token that offers instant, verifiable assurances for any value transfer. Using Amp, networks like Flexa can quickly and irreversibly secure transactions for a wide variety of asset-related use cases.

Amp is an ERC20-compliant token that runs on Ethereum. Using Ether to pay for gas, you can send and receive Amp tokens using any ERC20-compatible wallet.

The token is available on several digital asset exchanges. Among them are Poloniex, Gemini, and Bittrex.

Advantages of Amp

The Amp smart contracts are audited by famous security companies such as ConsenSys Diligence and Trails of Bits. The open-source code of the platform is easy to check and integrate into the third-party application or a platform.

Amp has become the first project that provided staking collateral and maintaining custody for their assets for the network users. Therefore, it is likely to gain further interest and adoption.

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FAQ

What is Amp protocol?

Amp (AMP) is an open-source collateral Ethereum-based protocol that provides immediate, verifiable assurances for any transfer.

How did Amp appear?

The credit for the development of the Amp protocol goes to the Flexa team that worked together with the ConsenSys team to implement the project. Tyler Spalding, CEO of Flexa, informed that the team worked over the platform for half a year to fully understand the value of innovations implemented on a large scale.

The token was launched in September 2020.

How does Amp work?

There are collateral partitions in the Amp collateral model as a subset of AMP tokens. They provide collateral for particular purposes. It is distinguished on the ETH ecosystem by its unique addresses. Collateral partition gets endowed with its own set of rules regarding transfer hooks and privileges. It can also implement a predefined partition strategy to enable special capabilities (e.g., collateral models in which tokens are staked without ever leaving their original address).

Amp uses on-chain collateral managers to lock, release, and reward collateral, which are smart contracts that manage Amp on behalf of a specific collateralization application. Collateral managers interact closely with collateral partitions to allow, deny, and redirect Amp token transfers as needed and support the collateralization of value transfer activities. Flexa is the first collateral manager built on Amp. It manages staked Amp on its network for digital asset security. 

The Flexa collateral manager uses each collateral partition as a “pool”, incentivizing staking Amp, which anyone can contribute to. The Flexa collateral manager deposits a network reward as a percentage of each successful transfer’s value. AMP does not only accrue the value of the entire network’s spending capacity but also provides for a system of network rewards that are both highly elastic and exponential.

What is unique about Amp?

Amp facilitates instant, verifiable assurances for any pending or future value transfer so that any actions dependent on the transfer can proceed without delay. Using Amp as collateral, individuals and entities benefit from the security and efficiency of collateral that is transparently attestable on an immutable ledger.

What is AMP token?

Amp is the new digital collateral token that offers instant, verifiable assurances for any value transfer. Using Amp, networks like Flexa can quickly and irreversibly secure transactions for a wide variety of asset-related use cases.

Amp is an ERC20-compliant token that runs on Ethereum. Using Ether to pay for gas, you can send and receive Amp tokens using any ERC20-compatible wallet.

The token is available on several digital asset exchanges. Among them are Poloniex, Gemini, and Bittrex.

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