Davide
@0xdavide
📈➖📉Not everyone knows that there are volatile stablecoins, for example Ampleforth ($AMPL). This stablecoin (Erc20) varies on average from $0.75 to $1.50 with peaks even at $3-4. However, the "rebase" (with oracles) that mint/burn supply brings the price back to around $1.20 (initially the target price was 1$). When the price is too high, supply is created (inflation), holders are incentivized to sell. When the price is too low, supply is burned (deflation) and people are incentivized to buy. The rebase of $AMPL occurs based on the average price of the asset compared to the target price, which was anchored to $1 in 2019, now 1.20$ (inflation). The rebase mechanism works as follows: ➕Positive rebase (Increase in supply): If the price of AMPL is above ~1.26 USD, the supply is increased to lower the price. ➖Negative Rebase (Decrease in Supply): If the price of AMPL is below ~1.14 USD, the supply is reduced to raise the price. 🟰No Rebase: If the price is between 1.26 USD and 1.14 USD.
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Davide
@0xdavide
The rebase happens once a day, adjusting the circulating supply of $AMPL in users' wallets proportionally to their holdings. Yeah, you got it, if you hold 1000 $AMPL...after the rebase you may see this number increase or decrease. You are holding a % of the total supply. If you hold 1%, the number of your $AMPL can increase or decrease based on the total supply. The functioning of $AMPL is very educational because thanks to it you understand fundamental concepts such as: 1) Inflation 2) Importance of supply Furthermore, you learn to think (in other contexts) in % which is fundamental when you have to evaluate the points in an airdrop. As I always say, it is not the number of points you hold or how many users there are that is important but the percentage of your deposit (or points) compared to those of other users! Learn to think in % and not with the mathematical number (without a reference it has no meaning), in the same way learn to think about market cap and not with the price!
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Davide
@0xdavide
I close with an interesting thing: sometimes passion is rewarded! When I was trying to understand (between 2019 and 2020) how $AMPL works in non-custodial wallets, after about 1 year (2021) I was rewarded with a great airdrop ($FORTH given away to $AMPL holders). It was enough to hold about 8-9 $AMPL ($10) to receive about 7k airdrop! At the time, airdrops did not have points/quests and it was not possible to farm them (they were unpredictable). There were not even scaminfluencers on X/Telegram who shill garbage!
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