Ampleforth, a digital asset protocol for smart commodity-money, announced recently that it has completed integration with Chainlink oracles to aggregate secure and timely off-chain pricing data for its protocol.
Through the Chainlink integration, Ampleforth’s Market Oracle (volume-weighted price) and CPI Oracle (current price target) will now be powered by nine different incoming price feeds from three different aggregators, which act together to determine the magnitude of AMPL’s supply adjustment every 24 hours.
“The incorporation of outside data is what allows us to improve upon things like Bitcoin and gold. While Bitcoin emits according to a fixed supply schedule, AMPL’s are countercyclical and seek price-supply equilibria. Critical to that function is the ability to detect and react to market price automatically. Fixed supply monies like Bitcoin or gold are great because they’re immune to political tampering and runaway inflation. Unfortunately, they’re also vulnerable to runaway deflation. The key question to ask is: can we create non-dilutive money that automatically adapts to economic shocks, without a discretionary authority. And the answer is yes.”
– Evan Kuo, co-founder, and CEO of Ampleforth
The Ample is a commodity-money, like Bitcoin or gold, but with near-perfect supply elasticity, like fiat. The token utilizes an elastic supply policy to address the deflationary problems of natural commodity-monies by automatically increasing or decreasing the number of tokens held by each user, based on the previous day’s average price.
AMPL’s rely on accurate market oracles to inform the supply adjustment of its token. It does so by leveraging pricing data from the protocol’s Market Oracle (24-hour Volume Weighted Average Price) and a CPI Oracle (the current price target, a metric measured by the Personal Consumption Expenditure from the Bureau of Economic Analysis).
With Chainlink, Ampleforth’s Market Oracle will be supplied with the daily 24hr VWAP of AMPL/USD across three different aggregators (BraveNewCoin, Kaiko, CryptoCompare) and two upcoming.
Currently, Ampleforth’s markets include:
- Bitfinex: AMPL/USD, AMPL/USDT, AMPL/BTC
- Kucoin: AMPL/BTC, and AMPL/USDT
- Uniswap: AMPL/ETH
- Bancor: AMPL/BNT
“Ampleforth represents a unique innovation in monetary assets. We’re excited to help keep the Ampleforth protocol operating securely by connecting their on-chain contracts with critical off-chain market data. This integration shows how smart contracts pegged to real-world data feeds can revolutionize the way we create and use monetary instruments.”
– Sergey Nazarov, Co-Founder of Chainlink
Smart contracts are corruptible through inaccurate and slow data. Chainlink solves this problem by connecting smart contracts to the real-world via a secure, decentralized network of oracles that ensure relevant and accurate data is fed into the ecosystem
The Ampleforth team is tapping into Chainlink’s network as a source of price and CPI information for its elastic supply protocol, which ultimately improves price discovery and further decentralizes the asset.