Ampleforth, a digital-asset-protocol for producing smart commodity-money, has announced that it will be the first monetary asset to use Chainlink oracles to aggregate secure and timely off-chain pricing data for its protocol.
Ampleforth, formerly Fragments, is a digital asset protocol for creating fair, independent money. The Ampleforth protocol moves volatility from unit price to unit count and achieves price stability by algorithmically expanding and contracting supply among holders based on demand.
Chainlink enables smart contracts to securely access off-chain data feeds, web APIs, and traditional bank payments. Smart contracts are corruptible through inaccurate and slow data. Chainlink solves this problem by connecting smart contracts to the real-world via a secure, decentralized network of oracles that ensure relevant and accurate data is fed into the ecosystem. The company is well known for providing highly secure and reliable oracles to large enterprises, including Google, Oracle and SWIFT, and leading smart contract development teams.
Through the Chainlink integration, Ampleforth’s Market Oracle (volume-weighted price) and CPI Oracle (current price target) will now be powered by nine different incoming price feeds from three different aggregators, which act together to determine the magnitude of AMPL’s supply adjustment every 24 hours. AMPL is a commodity-money, like bitcoin or gold, but with near-perfect supply elasticity, like fiat. It utilizes an elastic supply policy to address the deflationary problems of natural commodity-monies by automatically increasing or decreasing the quantity of tokens held by each user, based on the previous day’s average price.
“The incorporation of outside data is what allows us to improve upon things like Bitcoin and gold,” said Evan Kuo, co-founder, and CEO of Ampleforth. “While Bitcoin emits according to a fixed supply schedule, AMPL’s are countercyclical and seek price-supply equilibria. Critical to that function is the ability to detect and react to market price automatically. Fixed supply monies like bitcoin or gold are great because they’re immune to political tampering and runaway inflation. Unfortunately, they’re also vulnerable to runaway deflation. The key question to ask is: can we create non-dilutive money that automatically adapts to economic shocks, without a discretionary authority. And the answer is yes.”
According to Ampleforth, they are tapping into Chainlink’s network as a source of price and CPI information for its elastic supply protocol, which ultimately improves price discovery and further decentralizes the asset.
“Ampleforth represents a unique innovation in monetary assets,” said Sergey Nazarov, Co-Founder of Chainlink. “We’re excited to help keep the Ampleforth protocol operating securely by connecting their on-chain contracts with critical off-chain market data. This integration shows how smart contracts pegged to real-world data feeds can revolutionize the way we create and use monetary instruments.”
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