Protocol Avalanche it is clearly one of the biggest surprises of the DeFi sector in 2021. Now it comes with another interesting novelty. The company integrates into the network Ampleforth.
Avalanche comes with an upgrade
Ampleforth is officially joining the Avalanche network. This report was announced on October 26. What will this cooperation bring? The AMPL token, which comes from the ETH network, will be used to denominate stable contracts in the AVAX protocol.
DeFi’s unit of account is LIVE on @avalancheavax 🥳
– Ampleforth #AMPL (@AmpleforthOrg) October 26, 2021
Ampleforth is basically a unique stablecoin and direct competition stablecoin, which are covered by the US dollar. However, the AMPL token is completely different. The algorithms of this interesting protocol simply convert price volatility into supply volatility. But what does that mean? While the price of AMPL cyclically fluctuates at the level of 1 USD, the number of tokens in the wallet of hodler increases or decreases. Of course, all this is affected by the movement of the network. Ultimately, therefore, AMPL is much more decentralized than standard stablecoins.
Evan Kuo, CEO of Fragments Inc, also described the cooperation with the Avalanche protocol:
“It is ironic that the DeFi ecosystem currently relies so much on centralized stablecoins for liquidity and collateral lending. Given the changing regulatory environment, it is important for DeFi to have a financial building block that is decentralized, uncensored and has some aspect of predictability or price stability. “
For Avalanche, this is a really important step, which will most likely be reflected in the price of the AVAX token. The first layer ecosystems are experiencing a big boom. According to the total market capitalization, the AVAX token is currently located in 13th place.