$AMPL is a decentralized unit of account that serves as base money for DeFi.
It’s introducing a fundamentally different economic model compared to traditional cryptocurrencies and fiat currencies.
Unlike fixed-supply assets, such as Bitcoin or fiat currencies, which central banks can inflate at will, AMPL features an elastic yet non-dilutive supply.
E l a s t i c i t y means that the total amount of AMPL in circulation automatically adjusts in response to market demand, expanding or contracting daily through a mechanism called rebasing.
Despite these supply changes, each AMPL holder maintains the same proportional ownership of the network as supply changes are evenly distributed across all holders.
AMPL targets a stable purchasing power by aiming for a value of approximately one 2019 US dollar, adjusted over time to account for inflation. Rather than relying on reserves or collateral to stabilize value, AMPL translates market-driven price volatility directly into supply volatility.
Building upon this innovative mechanism, the Ampleforth ecosystem provides users with the opportunity to deposit their AMPL tokens into the Rotation Vault, which splits their position into two derivative assets with distinct volatility profiles: SPOT, a low-volatility asset, and stAMPL, a high-volatility asset.
Staked AMPL ( $stAMPL ) is designed specifically for users seeking amplified exposure to AMPL’s elastic rebasing dynamics.
When depositing AMPL into the vault, users opting into stAMPL essentially accept all the volatility forgone by SPOT holders, resulting in enhanced exposure to rebases, typically around 1.1 x to 1.2 x the daily rebase compared to standard AMPL.
The arrangement creates a distinctive dynamic: stAMPL holders may see their proportional ownership of the network change after each rebase.
Specifically, in positive rebases, stAMPL holders gain additional network ownership because SPOT holders exchange volatility (and thus network exposure) for greater stability.
In other words, stAMPL holders capture the volatility premium that SPOT holders willingly forgo, presenting a leveraged opportunity that is directly aligned with the growth cycles of the AMPL network.
Through AMPL and stAMPL, Ampleforth provides a novel financial toolkit that enables crypto investors to manage their exposure to volatility and stability in a unique manner, all within a fully decentralized and algorithmically governed framework.

4.04K
51
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.