DeFi Frenzy has grabbed the headlines in recent months as cryptocurrency exchanges scrambled to list popular tokens in the decentralized finance space. However, according to one expert, another concept has emerged called “flexible finance”, which could be the next generation of financial platforms that can use unique, inflexible assets.
In an interview with Cointelegraph, CEO of the Ampleforth Foundation, a digital real estate protocol, Evan Kuo said that Elastic Finance started with its AMPL token, which is a flexible, rule-based digital currency that automatically converts price volatility into price volatility.
He said the lean economy is an asset class with the functionality of re-establishing AMPL and an ecosystem of platforms that support flexible tokens. Kuo pointed out the lean economy and AMPL headings issues that need to be addressed in the current DeFi environment:
In a way, it recognizes the longstanding hypothesis put forward by Nobel Prize winner James Buchanan that ordinary “predictability” – as opposed to human judgment – can enable the building of more efficient financial institutions. Further analysis led us to speculate that these regular changes in supply could reduce the correlation between AMPL and the market value of BTC and ETH. ”
Kuo believes that assets based on the flexible financing concept can “reduce automatic settlement risk in systems that use collateralised curves” and can be used in debt contracts.
Features that can be distinguished from sustainable financing include insecurity, availability of floating proposition, target price, and automatic return of view.
Ampleforth recently released a roadmap that provides a glimpse into the future of Elastic Finance’s assets, which includes introducing price stability by changing account units, distributing all assets more equitably and unlocking new tool opportunities across the ecosystem. To use and integrate with any flexible asset.
In line with short-term plans after the release of an article highlighting the characteristics of the flexible asset and following the launch of the AMPL-LEND pool on Mooniswap on September 1, Kuo told Cointelegraph:
“We will develop custom AMMs that natively support and enhance offer resilience, and custom lending platforms that naturally support and enhance resilience assets for exposure. We will also actively support other platform developers who support resilient assets naturally. We will do this everywhere.”