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The rise of decentralized stablecoins-Aapleforth

BusinessThe rise of decentralized stablecoins-Aapleforth

The rise of decentralized stablecoins is undoubtedly the first shot of Ampleforth! Looking back at Ampleforth’s market value on June 1st this year, it was about 7.8 million US dollars, but its market value soared to 330 million US dollars in less than two months, which is 42 times than before.

Ampl is a bright star in many DeFi projects. The reason is not because it is just a DeFi project, but more about Ampl is a stable currency system. Its logic is simply to maintain the price near $1 through supply and demand. Higher than the benchmark price, increase supply, lower than the benchmark price, reduce circulation. The biggest feature of decentralized stablecoins is the embodiment of elastic price caused by the setting of elastic supply. Therefore, after Ampleforth entered Uniswap, a large amount of funds entered the market, and the return rate was as high as 76.56 times in one month.

Many people can’t understand the decentralized stable algorithm. Most trading users only stare at the price, but in fact, the decentralized stable currency algorithm guarantees the relationship between market value and price. Suppose it has fallen in the past 24 hours. 10%, but an additional 10% is issued, which has almost no impact on the value of the tokens in the hands of users. So here is more need to look at its market value changes, not just the price. Although the price is falling, the market value growth is still in an upward cycle, that is to say, the currency price of the decentralized stable token is falling because of market supply and demand. Consequences of the stabilization mechanism.

Decentralized stablecoins will become an important role in the future stablecoin market, but this depends on the precise design of algorithms and the superiority of contracts. Nowadays, many decentralized stable tokens are beginning to emerge on the market. Today I will introduce one of the more prominent features-Aaplforth, to be precise, an upgraded and optimized version of Ampl.

The purpose of Aapl is to create a digital commodity that is not highly relevant to Bitcoin and other asset classes. Aapl’s full name is Aaplforth-a new digital commodity agreement that transmits nominal exchange rate information to token supply decisions. The unique architecture design and incentive mechanism of the Aaplforth protocol has caused the existing price-oriented trading strategies to fail to meet the trading needs, and a new trading strategy that comprehensively considers supply must be adopted. In view of this, Aaplforth will show a unique way of fluctuation.

It is not difficult to see from the Aapl agreement that Aapl is very friendly to both short-term and long-term traders. According to the initial conditions and incentive measures established by the Aapl agreement, there is no centralized supervision of prices or supply in the system, and it is based on a decentralized network composed of traders. First, the agreement transmits price information to supply decisions. Second, the behavior of traders based on changes in supply will be transmitted to price performance.

Regarding security issues, at the level of contract code, Aapl follows the principle of open source blockchain, and will open the code source for supervision of the entire network. At the same time, Aapl can be exchanged and purchased directly on the decentralized exchange uniswap on imtoken. Trading, the security is very high.

Aapl has optimized the convenience of exchange. In uniswap, usdt or eth can be used for transaction exchange, excluding a single eth for transaction exchange.

Secondly, the most eye-catching part of DeFi projects-liquid pledge is the focus of Aapl. Liquid pledge is mainly to obtain excess profits by providing liquidity for the project. The liquidity pool does not assume any additional risks because the conditions of the collateral have not changed. Its practicality can be summed up in one sentence: the liquidity of betting provides users with a very simple and rude way to make profits. You only need to hold it to make money!

In the Aapl system, the more liquidity provided and the longer the duration, the greater the share of the Aapl liquidity pool obtained. The whole process is non-custodial and carried out on the chain. In this way, users who provide liquidity on Uniswap will receive transaction fee rewards in the Uniswap reserve pool and token rewards in the Aapl system. As more and more Aapl are motivated for staking, the price of Aapl will continue to rise, and the continued increase will make users more profitable and attract more people to enter the market. As long as Uniswap has sufficient liquidity, Aapl’s pledge rewards will continue to provide fuel to the fund pool to increase arbitrage opportunities. With that, there will be motivation. With this cycle, you can imagine the next market boom. And value too.

In addition to Aapl’s own stablecoin system, Aapl also added an original deflation model, which is to better control the malicious behavior of the market. In Aapl’s deflation model, users will consume 1% of their tokens during transactions and transfers. During the operation of the deflation model, Aapl’s stablecoin will be embodied in greater value, to a certain extent, to resist the malicious use of data by exchanges, and users have a purer trading environment. Of course, users can also make market through pledge Rewards to make up for the deflationary loss of the transaction. The purpose of the Aaplforth team in designing the entire model is to hope that under the protection of this mechanism, Aapl’s stable currency ecology will gradually replace the traditional stable currency in the market!

How far can DeFi go? In fact, DeFi is currently only in its infancy. More optimized products are needed to enrich this section, and more high-quality financial products are used in the decentralized system. For Aaplforth, this is an area A step in the history of blockchain. We believe this is a field with huge investment potential. In an industry with unlimited imagination, nothing is impossible.

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