New York. 12th July 2019 – Ampleforth, a digital asset protocol for smart commodity-money, announced today their partnership with Compound to integrate AMPLs into the Compound v2 platform by creating a new cToken. Compound is a protocol that establishes money markets for digital assets and is the largest trustless lending platform on Ethereum, with $50 million of assets earning interest.
Ampleforth’s smart commodity money, AMPLs, is a new decentralised financial instrument for investors and institutions seeking to diversify their portfolio. Their digital asset’s value is derived from whitelisted price feeds supplied by secure and trusted industry leaders like Quanstamp, which act as one of many price oracles.
“Compound is catalysing our distribution,” says Richy Qiao, Chief Business Officer of Ampleforth. “We’re aligned with bringing more financial diversity into the decentralised financial space. With a rapidly digitising economy, and an estimated $256 trillion in global assets still untapped, DeFi is one of the most underserved segments in our economy. Ampleforth and Compound is breaking ground on making it more accessible and valuable, adding much needed liquidity to the market.”
Compound is an Ethereum money market protocol that allows users to earn interest on, and borrow Ethereum assets without a counterparty or peer. By integrating with Compound, AMPLs will become interest-bearing, and able to be used as collateral to borrow other assets — giving sophisticated users and traders new tools to profit from market dynamics. Compound users will have the opportunity to approve AMPL as a supported asset in the next community vote.
Evan Kuo, Co-founder and CEO of Ampleforth, notes: “AMPLs was engineered specifically as a commodity money with characteristics that create robust value across time and is resilient against external influences. Compound adds an extra layer of utility and value that will only drive stability and better price discovery. We’re building one of the most powerful financial instruments on blockchain and are excited to continue contributing to the economy of the next financial revolution.”
Jared Flatow, Protocol Engineer at Compound, explains, “Ampleforth has built an elastic commodity money, which is an alternative to pegged-value stablecoins. Money is the most popular use-case for borrowing and leverage, and AMPLs will take the experiment in directions we haven’t even considered yet!”
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.