Ampleforth announced an upcoming integration with Chainlink. According to the company, the AMPL token will edge closer to being a perfect elastic commodity-money. Consequently, the Ampleforth protocol will get access to accurate and decentralized price indicators. Effectively, it would result in the precise execution of its elastic supply policy.
As we know, Bitcoin has a fixed supply. However, the AMPL token does not. Instead, it is countercyclical. That said, there is a unique supply movement pattern. Therefore, AMPL seeks the price-supply equilibria. Simply put, its supply automatically responds to the market price.
Currently, Ampleforth uses a rebasing function. And it governs the supply of AMPL tokens every 24 hours. Concurrently, it is using two of its own oracles, Market and CPI Oracle, to collect price data from the markets on a daily basis.
Now, it is looking forward to incorporating the Chainlink oracles. This is due to the fact that they are highly accurate and tamper-resistant. Above all, this move will ensure that the supply policy algorithm responds to the price data in the market place. Thus, such a move would enable AMPL to adapt to economic shocks. Bitcoin, for instance, is not designed this way.
What will Chainlink integration result in?
With the integration of Chainlink oracles, the Ampleforth supply policy will be using 24-hour Volume Weighted Average Price (VWAP). The oracles will bring in AMPL/USD VWAP from three different aggregators and nine price feeders. The three aggregators are BraveNewCoin, Kaiko, and CryptoCompare. Furthermore, it will also use a monthly CPI metric as measured by Personal Consumption Expenditure (PCE). It is collected by the United States Bureau of Economic Analysis for GDP calculation. That, in turn, checks US dollar inflation.
AMPL tokens are currently available on four different exchanges. Namely Bitfinex, Kucoin, Uniswap, and Bancor. The available trading pairs vary from exchange to exchange. Some of the trading pairs are AMPL/USD, AMPL/USDT, AMPL/BTC, AMPL /ETH, and AMPL/BNT.
This integration will push Ampleforth to nearly-perfect supply elasticity and absolute gold-like scarcity. Previously, we reported about the Chainlink and Ontology partnership.