Avalanche has released the AMPL token, a stablecoin rival. The AMPL token may now be used in DeFi protocols on the network thanks to Ampleforth's integration with Avalanche.
On Avalanche, Ampleforth Arrives
The most recent protocol to be integrated with Avalanche is Ampleforth. Ampleforth's developer, Fragments Inc., said Tuesday that it has joined the growing Layer 1 network. The AMPL coin, an Ethereum-based unit of account, may now be used to denominate Avalanche DeFi protocols stable contracts.
Ampleforth positions itself as a direct rival to stablecoins backed by central banks. The AMPL token takes a different strategy than other stablecoins in the crypto arena, which depend on conventional banks or lenders to support their stablecoins.
The algorithms of the Ampleforth protocol convert pricing volatility into supply volatility. This implies that, although the price of AMPL tends to oscillate about $1, the quantity of tokens in a holder's wallet fluctuates based on whether the network grows or shrinks. This approach seeks to make AMPL a more decentralized stable unit of account than other current stablecoins.
DeFi protocols on the network will be able to denominate stable contracts utilizing AMPL tokens instead of current stablecoins thanks to the integration with Avalanche, offering a greater degree of decentralization. Fragments Inc. CEO Evan Kuo remarked of the update:
"It's strange that the DeFi ecosystem is so reliant on centralized stablecoins for liquidity and lending collateral right now." With the shifting regulatory environment, it's critical for DeFi to have a decentralized, uncensorable financial building block with some kind of pricing predictability or stability.”
The action by Avalanche comes when the overall value locked in DeFi protocols on the network reaches new highs. Avalanche now supports $8.6 billion in network liquidity and has attracted numerous Ethereum DeFi blue chips, including Aave and Curve.
Avalanche has risen to new highs, along with numerous other chains, since August, owing to a spike in Layer 1 ecosystems. The EVM-compatible network has risen swiftly in market value, and is presently ranked 13th.
No comments:
Post a Comment
Note: only a member of this blog may post a comment.