• Avalanche Integrates Ampleforth to Strengthen the DeFi Ecosystem

  • The AMPL token, a stablecoin competitor, has been launched on Avalanche.

    Ampleforth has finished its integration with Avalanche, allowing the AMPL token to be used in network DeFi protocols.

    Ampleforth has arrived at Avalanche.

    Ampleforth is the most recent protocol to be integrated into Avalanche.

    Fragments Inc., the company behind Ampleforth, announced on Tuesday that it has joined the growing Layer 1 network. The AMPL token, a unit of account derived from Ethereum, can now be used to denominate stable contracts on Avalanche DeFi protocols.

    Ampleforth positions itself as a direct rival to centrally-backed stablecoins. While most stablecoins in the crypto space are backed by traditional banks or lenders, the AMPL token takes a different approach.

    The algorithms of the Ampleforth protocol convert price volatility into supply volatility. This means that, while the price of AMPL fluctuates around $1, the number of tokens in a holder’s wallet increases or decreases depending on whether the network expands or contracts. This mechanism aims to make AMPL a more decentralized stable unit of account than other existing stablecoins.

    By integrating with Avalanche, DeFi protocols on the network will be able to denominate stable contracts in AMPL tokens rather than existing stablecoins, resulting in increased decentralization. Fragments Inc. CEO Evan Kuo commented on the update:

    “It’s ironic that the DeFi ecosystem is currently so reliant on centralized stablecoins for liquidity and lending collateral.” With the changing regulatory landscape, it is critical for DeFi to have a financial building block that is decentralized, uncensorable, and has some degree of price predictability or stability.”

    The move comes at a time when the total value locked in DeFi protocols on the network is at an all-time high, according to Avalanche. Avalanche currently supports $8.6 billion in network liquidity and has attracted several Ethereum DeFi blue chips, including Aave and Curve.

    Since August, Avalanche, along with several other chains, has surged to new highs amid a boom in Layer 1 ecosystems. The EVM-compatible network has risen rapidly and is now ranked 13th in terms of market capitalization.

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