TimeX lists ‘adaptive base-money’ asset Ampleforth (AMPL)

TimeX has always aimed to stay at the forefront of the cryptocurrency and blockchain movement. As well as integrating the most promising and up-to-date technologies, that also means keeping our traders happy with the latest digital assets available!

With that in mind, we’ve listed Ampleforth (AMPL), a new form of digital asset that features a novel approach to mitigating the volatility for which crypto is notorious.

Launched in 2019 by a team of software engineers, academics and crypto investors and enthusiasts, Ampleforth is a so-called ‘adaptive base-money’ cryptocurrency project. The aim is to reduce – though not eliminate – price fluctuations, creating a totally new kind of crypto asset that can serve as a hedge to more conventional and volatile digital currencies like Bitcoin. Ampleforth therefore dampens volatility, while remaining fully decentralised.

Supply vs. Demand

TimeX is the first Australian exchange to list Ampleforth (AMPL), a project that has generated considerable buzz in the cryptocurrency space. 

The low-volatility crypto asset space is currently dominated by stablecoins. Most of these – including the popular USDT, USDC, and our very own AUDT are backed by fiat reserves, held by a centralised entity. The aim is that the asset can be redeemed for the dollars that back it, 1:1. These stablecoins tend to track their underlying assets very closely, precisely because they are immediately convertible to fiat.

Other stablecoins, like MakerDAO’s Dai, are decentralised but collateralised by digital assets. This ‘soft peg’ approach sees the price fluctuate above and below the dollar mark over the longer term, but always gravitate towards a specific target.

Ampleforth, which aims to reduce price fluctuations but does not aim to track the dollar precisely, takes neither of these approaches. Instead, its supply is adjusted by a smart contract in response to changing price in the market, thereby maintaining a rough balance with demand at any given time. As the price of the token on the open market moves up and down, according to oracles that post exchange data to the blockchain, the number of tokens held in each wallet is diluted or decreased. The proportion of all tokens owned by each holder remains the same. 

Rebasing integrated on TimeX

TimeX has integrated Ampleforth’s rebasing mechanism according to its official guide for exchanges. The amount of AMPL in existence will automatically be ‘rebased’ once a day. Since this involves changing token balances for exchange users, trading will be suspended for a short period of time and certain operations will be restricted:

• The rebase will occur at most once per day, between 2:00am and 2:20am UTC.
• AMPL held by TimeX will be updated accordingly.
• Deposits, withdrawals and trading will be suspended within the rebase window.
• AMPL sell orders will automatically be cancelled in this period, if the rebase results in a reduction in AMPL supply.
• Withdrawals will be cancelled if supply decreases, but will not be affected if supply increases (or remains the same).
• Changes to user balances will be reflected in their wallets.

The perfect fit for TimeX

Ampleforth is an intriguing and innovative new kind of asset that pushes the boundaries of what is possible in the blockchain and DeFi space. It offers traders a way to diversify their portfolios while not completely eliminating risk and opportunities for return. Critically, it remains fully decentralised. 

This radical new concept and technology is the perfect match for TimeX, which itself has a strong track record of applying the latest blockchain developments to deliver benefits to the crypto world.

We hope you’ll agree! Why not log into TimeX and pick up some AMPL to diversify your crypto holdings?