The post Ampleforth introduces ‘low-volatility’ alternative to fiat stablecoins appeared on BitcoinEthereumNews.com.

Coinbase Ventures provided $1 million in funding for the new digital asset that tracks the Consumer Price Index, offsetting inflation. Fragments, the developer that engineered the Ampleforth protocol, and the Ampleforth Foundation, have announced plans to introduce an alternative to fiat stablecoins, combining features of commodity-based money and peer-to-peer digital cash to provide a volatility-resistant digital asset called SPOT. According to the technical documentation, SPOT’s volatility-reducing properties are achieved by segmenting the volatility of Ampleforth’s native currency, AMPL, into two separate assets through a process known as tranching. The first of these assets, referred to as the “senior tranche,” is the low-volatility SPOT token. The second asset produced by the segmentation is a staked version of AMPL, called the “junior tranche,” and acts as a sponge that soaks up the lion’s share of network volatility, thereby shielding SPOT from significant price swings. Read more Source: https://cointelegraph.com/news/ampleforth-low-volatility-alternative-to-fiat-stablecoins?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound

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Filed under: News - @ July 9, 2024 6:14 am