About Ampleforth

Hi All,

About a month ago I started looking into Ampleforth and read the white paper but all it seemed to talk about was the tokenomics. It was interesting but I couldn’t tell what value they actually add.
A few weeks later and its market cap has tripled.

So now I’m wondering, did I miss a section in the white paper or is it hype that has pushed it up…?

People who’ve bought Ampl or are looking into it, what do you think i’ve missed? What is the value added by Ampleforth?

Think more of the Ampleforth contract as a economic system on it’s own since it’s uncorrelated to any other asset. The reason why people are so bullish right now is because Ampl is basically the FED, but with fairly distributed money among all holders dependent on supply and demand only. There is nobody in between you and the printer. Demand goes up supply increases, demand goes down supply decreases - and so does the amount of coins in your wallet.

The other reason people see value is since the protocol will at some point find it’s equilibrium in market cap where the price will be stable around the 2019 dollar. So the ampl is right now in what they call marketcap discovery instead of the price discovery you see in other cryptocurrencies, hence the boom in marketcap.
The high price we are at right now is just because the incredibly high demand and the protocol can barely keep up increasing it’s supply (rebase happens every 24h). So for ampl the price is only a reflection of demand, nothing more. As far as I know this is the first asset where trading on marketcap is more important then trading on price.

As for use cases:

  • Already I see people talk about using ampl as a store of value since they see the benefit of not having a volatile asset like Bitcoin.
  • When the equilibrium phase is reached it could be used as a stable coin in theory, even though I have to mention Ampleforth states that it is not trying to be a stable coin. Nearing equilibrium price should by then stay around the 1$. This could be with a billion or more market cap - nobody really knows when equilibrium will be reached.
  • Being used as a collateral with other assets.
  • Bringing liquidity in the DeFi ecosystem. Ampl is already the biggest liquidity pool on uniswap.

One of the most beautiful things of ampl right now is that basically anyone holding doesn’t have any incentive to sell, and probably will not have anytime soon. It almost looks like a ponzi scheme, but it’s only just the marketcap discovery of a decentralized contract.

I hope I answered your question clear enough. I’m only involved in ampl since barely 2 weeks, and still learning every day. But I really do think this might be a revolutionary tokenomics that crypto always needed.
Feel free to ask more and maybe someone else will join this topic with their perspective! :slight_smile:


Yes that is a great answer, think I understand it better now.

Have got to ask now though, could the recent pullback in price be more to do with their programmatic step changes with reduced buying rather than people actually selling it?

That is a good question I’m not sure about.
It should all be part of the protocol to consolidate though.
I think it might be a mix of both less demand and people getting shaken out.
There is a lot of people that bought in the hype who had no clue what they got themselves in to.

I suggest you to read: https://twitter.com/davoice321/status/1282770139163828225
He explains very well what part Ampleforth could play in the Crypto/DeFi ecosystem.

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I’m still trying to figure out where the intrinsic value is coming from with this protocol. I read “It is a scalable synthetic currency that is not backed by collateral, only itself, a primitive like Ethereum and BTC”
This statement alone gets my PoW soul burning. But a lot of the whitepaper is over my head so I’m not sure what to think, as the DeFi space does need some form of liquidity :sweat_smile: I’m just wholly averse to something referenced as akin to the Federal Reserve as it is not making sense to the economics in my head

I’m not sure how to answer your question of “intrinsic value” (does such a thing even exist? Gold didn’t have any value millions of years ago when water and food were the primary forms of “value”).

Regarding your reference to the Fed, I think the word “Federal Reserve” has a negative connotation in the defi world (that’s what everyone is technically fighting against). I’d think of Ampl as a decentralized version of the Fed, where the bureaucrats like Jerome Powell are replaced a vast collection of decentralized nodes that require consensus to adjust monetary policy.


I was thinking along the lines of modern times and consensus algorithms, in how we have math and physics to lend value to things like ETH/BTC, where as perhaps the elasticity is the value in Ampleforth. Im trying to wrap my head around it all still. Great point though.

Thank you for that. I think that was hanging me up a bit. Im getting hung up on the idea of free markets and my support in finding value naturally through boom and busts cycles. Equating some parallels of Ampl to some Keynesian traits on my end doesn’t help. Which is something I still don’t quite understand fully. My thinking so far is that ampl will kinda act as a new more fault tolerant DAI as well.

I get what you mean though! Rather than a lack of intrinsic value I view it more as " what value is it adding to the ecosystem" and apart from it being a stable store of value once it gets nearer its maximum market cap I’m not sure I see it.

Think I’ll still drop a little in, but I don’t see where it adds value UNLESS it comes and beats off Dai, USDC and all the other stablecoins. I see that as a possibility if the dollar becomes worthless, but if that does happen, then it’ll need to find a new number to keep it’s token cost similar to as will Dai.

Hey guys,

question regarding a geyser. I am in phase of playing a bit with Ampl and it puzzles me. Everyone says - lock it in geyser to get some yield. But I get quite a lot of new AMPLs by just sitting in my wallet (app wallet). Should I do Geyser instead… is the amount of new AMPLs greater there? What is the advantages in comparison to holding in wallet?

just to give an idea… each 24h I get around 10% more of new AMPLs.


Really great explanation thank you!

I put my initial investment of Ampl into the geyser after 10 days of letting it accumulate. This image is from yesterday on the interest that I’m receiving. I think I deposited 50/50 : 95 AMPL/ETH

wow… that seems like a great yield. If possible after a month give an update how it goes. Specially, how is the multiplier multiplier working.
I still don’t get how this ample will be sustainable… I get the whitepaper and the principle but if it gets stable around 1dollar,noone will be interested I suppose