Ampleforth (AMPL) – the cryptocurrency that acts like a stablecoin by reducing price volatility through expanding or contracting supply depending on market demand – have announced the launch of a new Liquid Incentive Program called Geyser.
Participants will be able to deposit AMPL and ETH in a decentralised network to provide liquidity and in return receive tokens that can be staked in Geyser. These rewards will generate continuous AMPL payouts on a block by block basis.
Geyser will initially operate via the current leading decentralised exchange (DEX), Uniswap V2, who deployed the second iteration of their protocol on the Ethereum mainnet in May. By depositing AMPL and ETH into Uniswap, contributors will receive UNI-V2 LP tokens to be staked in Geyser.
A Different Kind of Stable
There will be no minimum lock up or duration requirements for those staking UNI-V2 LP but naturally the more tokens committed and the longer the period deposited will entitle holders to a greater share of the pooled funds.
Brandon Iles, CTO of Ampleforth, said “With the launch of Geyser, we can systematically distribute AMPL and advance the liquidity pool on Uniwap V2. By incentivising users through staking rewards with no minimum duration, we hope to accelerate the adoption of new base monies in the decentralised ecosystem.”
The release of Geyser follows the completion of a successful formal verification audit by Certik.
Ampleforth is noticeably different from the current crop of popular stablecoins such as Tether in that it is not pegged to any fiat currency or underlying asset. Instead, the project looks to achieve price stability by algorithmically altering the amount of tokens in circulation.
By integrating with ChainLink at the end of last year, Ampleforth secured the real-time AMPL pricing data necessary for the smart contracts to execute and thus control the elastic supply.
In basic terms, an elastic supply means that if the price of one AMPL should be $1 but is trading at $2, the supply increases to lower demand. Likewise, if it should be $1 but is available for $0.75, the supply is reduced to push up demand. This daily rebase operation is applied universally and proportionally across every wallet’s balance so even if a holder’s AMPL token balance may fluctuate, it is suggested the overall value will remain reasonably constant.
Due to its unique structure, AMPL holders may find it easier to picture themselves as owning a fixed percentage of the network rather than a fixed number of tokens.