$AMPL Hunger Games - Introductory Post

Since a while, I have been watching the Defi space growing at a fast pace and I have been very cautious to even touch it.

In my humble opinion it has a lot of similarities with the 2017 ICO craze & soon or later we'll see some black swan event happening like for example the collapse of the MakerDAO which happened back in March or something even worse (hopefully not! or not at least soon enough!).

Lately, I have been researching a ~~ponzi~~ coin whose name is Ampleforth (ticker $AMPL). And I would like to talk a little about this sh!tcoin today.

Must admit, I'm much impressed with the tokenomics.

Introducing $AMPL and my bet on DeFi

$AMPL pretends to be a stable coin similar to tether($USDT) or Dai ($DAI) but with a pretty special mechanism to keep their pegging to ~1$.

Their supply is flexible.

-And what does it mean?

Once a day, the coin expand or contract their supply depending on their average price of the last 24h.

In absolute terms, that means (If I understood correctly):

-If the median price has been above 1,06$ in the last 24h, the coin supply inflates ~1% for every 0,1$ above the price target.

-Otherwise, if the median price has been below 0,94$ in the last 24h, the coin supply deflates ~1% for every 0,1$ below the price target.

-If the average price of the coin has remained stable between 0,94 - 1,06$, the code interprets this as 'equilibrium' and does nothing.

The inflation/deflation is directly applied to every holder wallet. Independently from where you're storing your coins.

Just tried that last night.

At first thought 'HOLY FUCK, WHO STOLE FROM MY LEDGER?!'

Giving a second thought to that 'shocking fact' I realised soon enough that the coins aren't on the ledger itself, only the private keys.

The code is the law and it's being applied.

A Trader's Wet Dream

I must admit that I got interested in the coin because it was one of the worst performers a few days ago.

'A ~75% dump in 4 days you say? Give me that shitcoin NOW!'

But also realized that stupid bullish period. I'm not joking when I say that some people amassed fortunes in these 30 days.

Every one of these 27 insane days people 'earned' between ~ 7 to 25% daily profits on their balances.

And I obviously thought: 'I have to try that Ponzi'.

Well, it might seem that the coin is printing money out of thin air (and that's exactly what have been doing, in fact), but what people fail to grasp is that when you purchase whatever number of coins, you're purchasing a ~0,0000001% of the pie which is inflating/deflating depending on price.

Let's use a simpler example.

Let's say that there's only 100 dollars in circulation and you have 1 of them (1/100 or 1% of the supply).

Now let's say that the economy 'prospers' and more people adopt USD. Now every dollar is worth the double (double purchasing power).

Now let's say that the official printer goes 'brrr' and doubles the number of coins in circulation.

Not only that. That printer also 'makes sure' that every owner of USD gets their part of the new printed coins.

If now there's 200$ in circulation, you'll now have 2$ (1 originally owned + 1 freshly printed). Still the 1% of the supply, but you now hold x2 coins as before.

This is exactly what $AMPL does. You always own the same percentage of the supply. For that reason, over the long term, price doesn't matter. Total Mcap yes.

It tries to inflate the supply to keep the price down when new buyers come in and inflate the price.

That means that over a enough period of time, AMPL always returns to 1$.

The white line represents parity with the dollar. Dips under the line has been (until now) short-lived. IMO the potential gains are huge if we repeat another cycle/s like the one of the last month.

I accumulated around ~1$ or less, so I'm ready to go :)

Did I also tell ya that you can short AMPL on FTX Exchange?

Well. You know it now. Maybe I'm deluded, but as I see it right now It's 'too good to be true'.
You can ride the positive rebases... and if you see a lot of people FOMO'ing can start to build a short position (always cautious to avoid getting liquidated).

Anyway, for now I'm just happy to experience some rebases (positive or negative, whatever) rather than maximize earnings.

Also, with ETH, you need to calculate every movement, as gas fees are pretty high lately (bullish thing though).

The 'Hunger Games' Challenge

I always wanted to own some ETH (but always hated the high fees) and this coin ($AMPL) seems interesting enough for me.

I managed to get a decent chunk a couple of days ago at 0,75$/AMPL.

I dumped 1000$ into ETH & AMPL and added liquidity to the ETH/AMPL pool on Uniswap. Seems that if you add liquidity to the pool you can opt to the Geyser, where you can earn more $AMPL.

Yeah, that's yield farming babe.

I don't want to overextend myself with that, you can learn more about the Geyser there.

I'll also be publishing how my portfolio inflates/deflates.

For today I can share this:

I let some ETH in my wallet 'just in case' I need to get the fuck out of here. But I'm kinda surprised to see how it's growing in just a few hours. I deposited around ~1005$ and now zapper says that I'm ~40$ up. Okay!