Avalanche Integrates Ampleforth to Boost DeFi Ecosystem
Key Takeaways
Ampleforth has launched on Avalanche.
The move will allow DeFi protocols on Avalanche to use the AMPL token as a stable unit of account.
Total value locked in DeFi protocols on Avalanche is currently at an all-time high.
Share this article
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.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Avalanche Meets Resistance After 24% Rally
DeFi protocol Avalanche has been in the spotlight after a series of announcements that may have helped push its native token, AVAX, toward higher highs. Avalanche Reaches Key Resistance…
Avalanche Is Launching on Coinbase Pro
Avalanche’s native token AVAX will soon be available to a wider audience thanks to a Coinbase Pro listing. Coinbase Pro to List AVAX Avalanche is heading to Coinbase Pro. In…
A Guide to Yield Farming, Staking, and Liquidity Mining
Yield farming is arguably the most popular way to earn a return on crypto assets. Essentially, you can earn passive income by depositing crypto into a liquidity pool. You can think of these liquidity…
Avalanche Breaks All-Time High on News of $230M Raise
Avalanche has closed a $230 million funding round led by Polychain Capital and Three Arrows Capital. Leading Crypto Investors Back Avalanche Ecosystem Avalanche has landed a $230 million investment to…
