Ampleforth and Balancer launch first rebasing Smart Pool for USDC-AMPL pair
Ampleforth, the protocol behind the supply elastic digital currency, AMPL, has launched the world’s first rebasing Smart Pool in collaboration with programmable liquidity protocol and aggregator, Balancer.
On Balancer, Smart Pools are controlled or private pools owned by a smart contract. These pools can be made of two to eight token constants, and customized with configurable weights that represent the desired ratio of each token in a pool.
Working closely with the Ampleforth team, Balancer will be debuting today the first USDC-AMPL Smart Pool, starting out with a 50/50 ratio. As the supply of AMPL expands or contracts every 24hrs, the USDC-AMPL Balancer Smart Pool will automatically adjust pool ratios to remove all impermanent loss associated with AMPL’s supply rebases. Now, liquidity providers on Balancer can benefit from the automatic weight adjustments of liquidity pairs, the daily supply rebases of AMPL and the yield generation from fees on token swaps while dramatically reducing impermanent loss.
"The rebalancing smart pool, jointly developed by Ampleforth and Balancer, showcases the most valuable aspects of each project and is a first step towards Elastic Finance,” says Brandon Iles, co-founder at Ampleforth. “Most floating price assets on AMM platforms cause LPs to suffer impermanent loss when paired with stablecoins. If there is long term supply growth, that impermanent loss may never be recovered. To solve this for AMPL LPs, we developed this new Smart Pool that’s capable of rebalancing pool weights in accordance with AMPL’s unique supply chains so that impermanent loss can be made truly impermanent.”
Founded by Evan Kuo and Brandon Iles, Ampleforth invented the category of supply elastic, rebasing digital currencies. It did so by developing an Ethereum protocol that translated market volatility into supply discovery through a ‘rebase’ mechanism every 24hrs. During the rebase, the Ampleforth protocol would either increase or decrease the number of AMPL’s held in user wallets based on the percentage difference between the AMPL oracle rate and its price target, which is tracked in real-time on the Ampleforth Dashboard.
In July, AMPL launched its first smart faucet, Geyser, to incentivise on-chain liquidity through Uniswap. Since, ETH-AMPL has become the top pair on Uniswap by 24hr liquidity and volume. At its all-time-high, AMPL surpassed USD700 million in fully diluted market cap and its Geyser remains one of the highest yielding incentive programs in the market. Continuing this momentum, Ampleforth released ten new pools on Mooniswap, the AMM backed by 1inchExchange, with AMPL-BAL, AMPL-BZRX, AMPL-COMP, AMPL-CRV, AMPL-LINK, AMPL-MKR, AMPL-NMR, AMPL-YFI, AMPL-YUSD and AMPL-LEND pairs.