Λmpleforth

Group A16: Alan Bublath Guerrieri, Nicolas D'Acunto,

Pedro Gonzalez Pagnanelli, Carlos Tinoco

03.18.21
Agenda
The Problem Why Ampl? Relevance

Team & Rebase

Ampleforth Investors
Price vs. Mkt Cap
Smart-Contract

Market Competitive Timeline 

Landscape Analysis Risk & Cons

Conclusion Takeaways Questions?

Why AMPL? The Problem Ampleforth Market Landscape Conclusion

"AMPL combines the best of Gov Prints $1000

T T+1
Bitcoin (non-dilutive) and the utility ARS  and give it to
of the stablecoins. It is a new type banks       
of decentralized primitive."

Total supply:        $1000 ARS                               $2000 ARS

Collateral value:          $100 USD                                $100 USD
• Centralized Control
• Limited Access
• Inefficiency Pedro owns:              100 ARS                                100 ARS
• Lack of Interoperability Pedro owns:               10 USD                                  5 USD
• Opacity
Pedro losses $5 USD in value and as inflation make prices his
buying power was halved in T+1

*This is an example to illustrate the problem that people in Argentina, Venezuela or Nigeria are facing with the
devaluation of their currency. Inflation, Macroeconomics and devaluation are oversimplified for the purpose of this
explanation.
 AMPL effect The Problem Ampleforth Market Landscape Conclusion

T Protocol mint T+1

$1000 ARS
Conceptually, the biggest difference
of ampleforth protocol with any other
cryptocurrency is that its guarantee
that the owner of AMPL will always
Total supply:        $1000 ARS                               $2000 ARS
maintain the portion of the Market
Collateral value:          $100 USD                                $100 USD Cap he bought. (e.g: if Pedro owns
1% of the Ampleforth Mkt Cap he
will always own that 1%
Pedro owns:              100 ARS                                200 ARS independently of the price or the
Pedro owns:               10 USD                                  10 USD token quantity he have at any
certain time.
Pedro balance is adjusted proportionally to the new supply added.
Therefore he doesn’t loose any value of his buying power.
Why is important? The Problem Ampleforth Market Landscape Conclusion
Team & Investors The Problem Ampleforth Market Landscape Conclusion

• Team mix of engineers and business, ex-Google, Uber.

• Advisory group MIT, Facebook, Stanford, Pantera
• Investors: True Ventures, Pantera Capital, Founder Collective, Slow Ventures, Brian Armstrong, FBG
Capital, Huobi Capital, Spartan Group, Nima Capital, Skunk Capital
• Initial rounds:
• Private 2018 (4.7M$)
• Public 2019 (4.9M$)
• Went big in June 2020 using Geyser in Uniswap (ETH-AMPL pool). They also distributed AMPL to users to
incentivize adoption. Market cap reached 1.6 Bn $ in Aug 2020.
• MKT CAP @ Mar 19 2021: 360M$
Smart-contract The Problem Ampleforth Market Landscape Conclusion

AMPL is an ERC- 20. ETHEREUM, but will be available on Polkadot, NEAR, and TRON

AMPL's smart contract design allows the increase and decrease of supply to be automatically
executed without any need for a transfer between peers, and without the need for a bank.

The monetary protocol automatically adjusts the supply of AMPL across all user wallets based
on price. This means the number of AMPL you own changes based on market conditions. When
price is high wallet balances automatically increase. When price is low wallet balances
automatically decrease. This supply adjustment operation happens once per day and is
called a rebase.

This daily rebase operation is applied universally and proportionally across every wallet’s balance.
This means AMPL is non-dilutive. Like Bitcoin, if you own 1% of the overall network you will
always own 1% unless you actively make a transfer.
 The Problem Ampleforth Market Landscape Conclusion

Rebase
The Rebase function requires a transaction to trigger it. Occurs every 24hs during a defined window.

(1) Gets an Exchange Rate from the Market Oracle, and confirms the rate is valid. Target price is $1 USD 2019.

(2) Computes the Supply Delta with the below formula:

                gross_supplyDelta = total_Supply * (exchange_Rate – target_Rate) / target_Rate

Ex: 1000 = 1000 * ( $2 - $1 ) / $1 or if the price is 100% above the target, then the supply needs to be increased by 100% to
reflect demand at the target price.
 The Problem Ampleforth Market Landscape Conclusion

Rebase
(3) Rebase Lag: correcting the price fully every night can be intense on the market. In order
to dampen the impact, and avoid overcorrection, there is a Lag applied to the Supply Delta
(rebaseLag is currenlty = 10 days). The greater the lag, the longer it is expected to take to
return to the target price. .

             Adjusted_supplyDelta = gross_supplyDelta / rebaseLag

Ex: 100 = 1000 / 10

(4) Supply Delta is applied across all holders proportionally by a process which can cause
slight deviations in the Supply Delta guaranteed to sum to less than 1.

Due to this mechanism the supply of Amples contracts or expands daily unless the Exchange
rate falls within the Expansion or Contraction Thresholds (atm 0.97 - 1.06). These
thresholds provide a small window of flexibility in the supply around the target price.
Price vs. Mkt Cap The Problem Ampleforth Market Landscape Conclusion

Expansion

Contraction
 Price vs. Mkt Cap The Problem Ampleforth Market Landscape Conclusion

Prediction

Reality
 The Problem Ampleforth Market Landscape Cons & Risks

Competitive Analysis

USD BTC ETH AMPL USDC USDT DAI FEI

Governance US Govt Comp Pwr Comp Pwr Dev Team Coinbase Tether Ltd Maker Tkn Tribe Tkn
Bankless X ✓ ✓ ✓ X X X ✓
Rules based X ✓ ✓ ✓ ✓ ✓ ✓ ✓
Speculative X ✓ ✓ ✓ X X X X

Value reserve ✓ X X X ✓ ✓ ✓ ✓
No price Volat  ✓ X X ✓ ✓ ✓ ✓ ✓
Elastic ✓ X ✓ ✓ ✓ ✓ ✓ ✓

Uncollateralized ✓ ✓ ✓ ✓ X X X ✓
Non-dilutive X ✓ X ✓ X X X X
 The Problem Ampleforth Market Landscape Conclusion

Timeline
Defi Ecosystem

Mar - 2021

BTC ETH AMPL

+ +
 The Problem Ampleforth Market Landscape Conclusion

Risks and cons

1. Variable supply controversial for exchanges: as the amount of
tokens change every rebase it generates a problem for the majority of
exchanges, specially during deflation when supply is burned and they
struggle to explain the customer why they have less tokens.

2. High Volatility in early stages: with low supply the price is more
volatile and as the % of incremental supply increases the incentive
increases and can reach a price far from the peg (e.g: 4) and when it
stop, a “falling knife” comes right after loosing a big part of the Market
Cap and sending the price below the peg. The price below the peg
can stay for longer periods until the extra supply minted is eliminated
completely. 5. Run out of incentives: according to the
roadmap ampleforth have treasury allocated for
3. Fixed rebase time: can give the big players (whales) speculate incentives till 2024. But if the project can’t achieve a
with the market and make profit at the expense of small fast traders. stable supply big enough to maintain the price with
low volatility close to the peg before running out of
incentives, the project would fail.
4. No plan for a big crash in ETH: could turn down the whole project.
AMPL is looking forward to diversify its liquidity. The team is working
to make it available in Polkadot, NEAR and TRON.
 The Problem Ampleforth Market Landscape Conclusion

Key Takeaways

• Ampleforth (AMPL) is a cryptocurrency protocol with an elastic supply that can expand and contract
based on market demand.

• The protocol's unique token dynamics make it a promising form of collateral for DeFi.

• AMPL is not entirely a stablecoin because it doesn’t eliminate volatility—its protocol aims to reduce
volatility.

• Ampleforth describes itself as “adaptive money built on sound economics,” aiming to combine the
scarcity of Bitcoin with the elasticity of fiat.
 The Problem Ampleforth Market Landscape Conclusion

Questions?