Ampleforth integrates with Avalanche to introduce stablecoin alternative

The integration will allow users of the blockchain to access algorithmic language AMPL for stabilized contract interaction.

Fragments Inc, the team responsible for the development of the Ampleforth Protocol, has announced that the protocol will be integrated into popular blockchain Avalanche to facilitate the introduction of unit-of-account denomination model AMPL.

AMPL is an algorithmic computer programming language that holds promise as a decentralized method of denominating stable contracts for core functionalities in the DeFi space such as lending, borrowing and the deployment of on-chain derivatives.

Ampleforth’s rebasing mechanism of daily adjusted supply levels enables the metric measurement of price value for user’s token accumulation, as opposed to the traditional method of price-tracked volatility. These systemic rules are then encoded on Ethereum via smart contracts. 

For instance, if a user engages in a speculative prediction that Bitcoin will reach $100,000 by the end of the year, and it comes true, they will be granted 5 AMPL tokens. However, if the leading asset falls short of the noted target, five tokens will be deducted. In this sense, if the AMPL ecosystem grows, the user attains more tokens and vice versa.

Establishing a dependable consistency in price levels and a fluidity in supply mechanics, all the while being a non-governed decentralized model, implies that AMPL could pose an alternative challenger to the platitudinous stablecoin model.

Related: Cointelegraph Consulting: How Avalanche is reimagining DeFi

CEO of Fragments Inc, Evan Kuo, spoke of the importance of ensuring true decentralization throughout the DeFi’s burgeoning ecosystems:

“It is ironic that the DeFi ecosystem currently relies so heavily on centralized stablecoins for liquidity and lending collateral. With the changing regulatory landscape and uncertainty around what the verdict around stablecoins will be, it’s important for DeFi to have a financial building block that’s decentralized, uncensorable and has some aspect of price predictability or stability.”

In late December 2018, the Fragment protocol rebranded their identity into what we know today as Ampleforth. The title was inspired by a poetic character working in the Ministry of Truth in George Orwell’s classically acclaimed novel 1984.

Analytical data from Cointelegraph Markets Pro and TradingView reveals that Avalanche’s native token AVAX has encountered bullish momentum over the past seven days, rising 28% to $71.30.

According to technical data from DeFi Llama, the blockchain network hosts 52 decentralized protocols amassing $8.62 billion in total value locked (TVL), the largest being Trader Joe which comprises 30% of its market share.

Avalanche’s TVL figure has risen substantially since early August when it was trading in consolidation around the $200 million mark.