Smart contract platform Avalanche is looking to create a more durable alternative to centralized stablecoins.
Avalanche was looking for better stablecoin options. The platform has enlisted the support of Ampleforth. Ampleforth is known for its decentralized unit of account for smart contracts. And now Avalanche and Ampleforth are working together. Prior to this partnership, Avalanche was closely working with Fragments Inc. They are the development platform behind Ampleforth. With this partnership, Avalanche will be able to offer censorship-resistant stablecoin alternatives.
According to reports, the integration of Ampleforth on Avalanche will result in the introduction of AMPL to Avalanche. AMPL will be the unit of account for the algorithmic stablecoin. Interestingly, it is also based on Ethereum (ETH).
DeFi's unit of account is LIVE on @avalancheavax 🥳
— Ampleforth #AMPL (@AmpleforthOrg) October 26, 2021
Avalanche Protocol and the DeFi Space
Avalanche’s DeFi ecosystem has recorded unprecedented growth over the past two months. The growth is so remarkable, that the platform currently boasts of being one of the most expanded DeFi stack in the entire DeFi ecosystem. The layer 1 blockchain currently has over $8 billion in Total Value Locked (TVL). This value is also spread across over 40 different decentralized exchanges (DEX). To ensure continuous growth and development of its DeFi ecosystem, Avalanche will continue to work with Fragments Inc.
CEO of Fragments Inc., Evan Kuo revealed his thoughts on both the DeFi space and what Avalanche was looking to achieve. According to Kuo, the DeFi space needs better options than centralized Tether ($USDT) and USD Coin ($USDC). In his own words, he said, “It is ironic that the DeFi ecosystem currently relies so heavily on centralized stablecoins for liquidity and lending collateral.” Adding that, it is “[…] important for DeFi to have a financial building block that’s decentralized, uncensorable, and have some aspect of price predictability or stability.” Moreso with the current uncertainty around crypto regulations and what the “[…] verdict around stablecoins will be.”
The introduction of AMPL is an important update for Avalanche. The decentralized unit of account will serve as a building block for true decentralization in the DeFi space. AMPLs will also help denominate smart contracts without having to make use of centralized platforms. This decentralizes all of Avalanche’s offerings.
AMPLs also automatically adjust the number of units. Its price comes from supply and demand and adjustments by the algorithm.
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