The stablecoin competitor has launched its AMPL token on Avalanche.
Ampleforth has completed its integration with Avalanche, allowing the AMPL token to be used in DeFi protocols on the network.
Ampleforth Arrives on Avalanche
Ampleforth is the latest protocol to integrate with Avalanche.
Fragments Inc., the development company behind Ampleforth, announced Tuesday that it had joined the rising Layer 1 network. The AMPL token, an Ethereum-born unit of account, can now be used to denominate stable contracts on Avalanche DeFi protocols.
Ampleforth markets itself as a direct competitor to centrally-backed stablecoins. While most stablecoins in the crypto space rely on traditional banks or lenders to back their stablecoins, the AMPL token takes a different approach.
The Ampleforth protocol’s algorithms translate price volatility into supply volatility. This means that while the price of AMPL tends to cycle around $1, the number of tokens in a holder’s wallet increases or decreases depending on whether the network grows or shrinks. This mechanism aims for AMPL to be used as a stable unit of account that is more decentralized than other existing stablecoins.
By integrating with Avalanche, DeFi protocols on the network will be able to denominate stable contracts using AMPL tokens instead of existing stablecoins, providing a higher level of decentralization. Evan Kuo, CEO of Fragments Inc., said of the update:
“It is ironic that the DeFi ecosystem currently relies so heavily on centralized stablecoins for liquidity and lending collateral. With the changing regulatory landscape, it’s important for DeFi to have a financial building block that’s decentralized, uncensorable, and has some aspect of price predictability or stability.”
For Avalanche, the move comes as the total value locked in DeFi protocols on the network is at all-time highs. Avalanche currently supports $8.6 billion of liquidity on the network and has attracted several DeFi blue chips from Ethereum, including Aave and Curve.
Since August, Avalanche has rallied to new highs along with several other chains amid a boom among Layer 1 ecosystems. The EVM-compatible network has climbed quickly and is now ranked 13th by market capitalization.
Disclaimer: At the time of writing this feature, the author owned BTC, ETH, and several other cryptocurrencies.
