[AMPL] MIP6 Collateral Onboarding Application for Ampleforth Token
- Who is the interested party for this collateral application?
- Provide a brief high-level overview of the project, with a focus on the applying collateral token.
Ampleforth is a system of synthetic commodity money, based around the AMPL token. The Ampleforth system seeks to keep the value of AMPL as close as possible to the 2019 value (purchasing power) of $1. It accomplishes this through a daily quantity rebasing process; if AMPL is trading above target price (as determined by a Chainlink AMPLUSD oracle), all AMPL balances are increased by an equal percentage, while if AMPL is trading below target all balances are reduced. AMPL quantity adjustment is non-dilutive, in that all balances change by the same percentage so each user owns an equal portion of the network before and after the daily rebase.
- Provide a brief history of the project.
Ampleforth completed a private financing round before launching in June 2019 with a public token sale. Since launch, AMPL has gradually seen declining volatility of the token price to more closely track the $1 target, but the overall market cap (which is more indicative of returns due to quantity adjustments) has continued to vary widely. This past week, Ampleforth began an incentive program on the AMPL-ETH Uniswap v2 pair which may increase liquidity and demand.
- Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.
Source Code: https://github.com/ampleforth
AMPL token contract: https://etherscan.io/token/0xd46ba6d942050d489dbd938a2c909a5d5039a161
- Link any available audits of the project. Both procedural and smart contract focused audits.
- Link to any active communities relating to your project.
- How is the applying collateral type currently used?
AMPL is currently used as a form of commodity money. Due to its dynamic supply adjustment, the AMPL token has different price and quantity dynamics which may make AMPL less correlated to other crypto assets.
- Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?
AMPL is a decentralized token. No organization bears legal responsibility for AMPL.
- Where does exchange for the asset occur?
AMPL is traded on centralized exchanges such as KuCoin and Bitfinex, as well as decentralized platforms such as Kyber, Uniswap, and Balancer. The Ampleforth team is currently sponsoring the ETH-AMPL pool on Uniswap v2 to encourage liquidity.
- (Optional) Has your project obtained any legal opinions or memoranda regarding the regulatory standing of the token or an explanation of the same from the perspective of any jurisdiction? If so, those materials should be provided for community review.
I am not aware of any publicly available legal opinions addressing the project or token’s regulatory standing.
- (Optional) Describe whether there are any regulatory registrations for the token and provide related documentation (including an explanation of any past or existing interactions with any regulatory authorities, regardless of jurisdiction), if applicable.
As far as I know, AMPL is not registered with regulatory authorities in any jurisdiction.
- (Optional) List any possible oracle data sources for the proposed Collateral type.
Centralized exchanges from (9) may offer price feeds for AMPL. AMPL supply also expands and contracts as the price deviates from the target price, so the system would need to take the daily rebasing into account.
- (Optional) List any parties interested in taking part in liquidations for the proposed Collateral type.
Due to the way that AMPL quantity increases or decreases daily, it may be more complicated to add it as a collateral asset to MCD. Potentially the AMPL could be wrapped into another ERC20 with a fixed quantity and floating Token:AMPL conversion rate.
Disclosure: I hold AMPL