Fragments Inc. The team responsible for developing the Ampleforth protocol announced that Ampleforth will be integrated into the popular Avalanche blockchain to facilitate the implementation of AMPL, a fully decentralized data module that can be used to select stable contracts.

The Ampleforth protocol is a promising decentralized alternative to stack coins that can be used for core functions in the DeFi area such as lending, borrowing and distribution of derivatives in the chain.

Ampleforth’s daily supply level adjustment mechanism allows users to measure the accumulation value of tokens metric, as opposed to the traditional method of tracking price fluctuations. These system rules are then coded into Ethereum using smart contracts.

For example, if a user shares a speculative forecast that Bitcoin (BTC) will reach $ 100,000 by the end of the year, and this is true, he will receive 5 AMPL tokens. However, if the underlying asset is below the specified target, five tokens will be deducted. In this sense, if the AMPL ecosystem grows, the user receives multiple tokens, and vice versa.

Creating a robust consistency of price and liquidity levels in supply mechanics, as a decentralized, unmanaged model, means that AMPL can be an alternative competitor to the hacked stablecoin model.

Related: Cointelegraph Consulting: How Avalanche Reimagines DeFi

Evan Koo, CEO of Fragments Inc., on the importance of ensuring true decentralization in thriving DeFi ecosystems:

“It is ironic that the DeFi ecosystem currently relies on centralized stable coins to provide liquidity and loan guarantees. With the changing regulatory landscape and uncertainty surrounding stack coin management, it is important for DeFi to have a decentralized and uncontrolled financial building block that has an aspect of predictability or price stability.
At the end of December 2018, Fragment Protocol renamed its identity to what we know today as Ampleforth. The name is inspired by a poetic character who works for the Ministry of Truth in George Orwell’s famous classic from 1984.

Analytical data from Cointelegraph Markets Pro and TradingView show that the original Avalanche token, AVAX, has experienced bullish momentum over the past seven days, climbing 28% to $ 71.30.

According to technical data from DeFi Llama, the blockchain network hosts 52 decentralized protocols with a total blocked value (TVL) of $ 8.62 billion, the largest of which is Trader Joe’s, which accounts for 30% of the market share.

TVL’s avalanche has skyrocketed since the beginning of August, when it traded in consolidation around 200 million dollars.

Source: CoinTelegraph

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