The
rise of decentralized stablecoins is undoubtedly the first shot of
Ampleforth! Looking back at Ampleforth's market value on June 1st this
year, it was about 7.8 million US dollars, but its market value soared
to 330 million US dollars in less than two months, which is 42 times
than before.
Ampl is a bright star in many DeFi projects. The
reason is not because it is just a DeFi project, but more about Ampl is a
stable currency system. Its logic is simply to maintain the price near
$1 through supply and demand. Higher than the benchmark price, increase
supply, lower than the benchmark price, reduce circulation. The biggest
feature of decentralized stablecoins is the embodiment of elastic price
caused by the setting of elastic supply. Therefore, after Ampleforth
entered Uniswap, a large amount of funds entered the market, and the
return rate was as high as 76.56 times in one month.
Many people can’t understand the decentralized stable
algorithm. Most trading users only stare at the price, but in fact, the
decentralized stable currency algorithm guarantees the relationship
between market value and price. Suppose it has fallen in the past 24
hours. 10%, but an additional 10% is issued, which has almost no impact
on the value of the tokens in the hands of users. So here is more need
to look at its market value changes, not just the price. Although the
price is falling, the market value growth is still in an upward cycle,
that is to say, the currency price of the decentralized stable token is
falling because of market supply and demand. Consequences of the
stabilization mechanism.
Decentralized stablecoins will become an important
role in the future stablecoin market, but this depends on the precise
design of algorithms and the superiority of contracts. Nowadays, many
decentralized stable tokens are beginning to emerge on the market. Today
I will introduce one of the more prominent features-Aaplforth, to be
precise, an upgraded and optimized version of Ampl.
The purpose of Aapl is to create a digital commodity
that is not highly relevant to Bitcoin and other asset classes. Aapl's
full name is Aaplforth-a new digital commodity agreement that transmits
nominal exchange rate information to token supply decisions. The unique
architecture design and incentive mechanism of the Aaplforth protocol
has caused the existing price-oriented trading strategies to fail to
meet the trading needs, and a new trading strategy that comprehensively
considers supply must be adopted. In view of this, Aaplforth will show a
unique way of fluctuation.
It is not difficult to see from the Aapl agreement
that Aapl is very friendly to both short-term and long-term traders.
According to the initial conditions and incentive measures established
by the Aapl agreement, there is no centralized supervision of prices or
supply in the system, and it is based on a decentralized network
composed of traders. First, the agreement transmits price information to
supply decisions. Second, the behavior of traders based on changes in
supply will be transmitted to price performance.
Regarding security issues, at the level of contract
code, Aapl follows the principle of open source blockchain, and will
open the code source for supervision of the entire network. At the same
time, Aapl can be exchanged and purchased directly on the decentralized
exchange uniswap on imtoken. Trading, the security is very high.
Aapl has optimized the convenience of exchange. In
uniswap, usdt or eth can be used for transaction exchange, excluding a
single eth for transaction exchange.
Secondly, the most eye-catching part of DeFi
projects-liquid pledge is the focus of Aapl. Liquid pledge is mainly to
obtain excess profits by providing liquidity for the project. The
liquidity pool does not assume any additional risks because the
conditions of the collateral have not changed. Its practicality can be
summed up in one sentence: the liquidity of betting provides users with a
very simple and rude way to make profits. You only need to hold it to
make money!
In the Aapl system, the more liquidity provided and
the longer the duration, the greater the share of the Aapl liquidity
pool obtained. The whole process is non-custodial and carried out on the
chain. In this way, users who provide liquidity on Uniswap will receive
transaction fee rewards in the Uniswap reserve pool and token rewards
in the Aapl system. As more and more Aapl are motivated for staking, the
price of Aapl will continue to rise, and the continued increase will
make users more profitable and attract more people to enter the market.
As long as Uniswap has sufficient liquidity, Aapl's pledge rewards will
continue to provide fuel to the fund pool to increase arbitrage
opportunities. With that, there will be motivation. With this cycle, you
can imagine the next market boom. And value too.
In addition to Aapl's own stablecoin system, Aapl
also added an original deflation model, which is to better control the
malicious behavior of the market. In Aapl's deflation model, users will
consume 1% of their tokens during transactions and transfers. During the
operation of the deflation model, Aapl's stablecoin will be embodied in
greater value, to a certain extent, to resist the malicious use of data
by exchanges, and users have a purer trading environment. Of course,
users can also make market through pledge Rewards to make up for the
deflationary loss of the transaction. The purpose of the Aaplforth team
in designing the entire model is to hope that under the protection of
this mechanism, Aapl's stable currency ecology will gradually replace
the traditional stable currency in the market!
How far can DeFi go? In fact, DeFi is currently only
in its infancy. More optimized products are needed to enrich this
section, and more high-quality financial products are used in the
decentralized system. For Aaplforth, this is an area A step in the
history of blockchain. We believe this is a field with huge investment
potential. In an industry with unlimited imagination, nothing is
impossible.
