- Chainlink and Ampleforth Protocol have entered a successful cooperation.
- The Ampleforth Protocol has integrated the data oracles of Chainlink to calculate external data for the calculation of the AMPL price.
The Ampleforth Protocol announced yesterday that it has successfully implemented Chainlink (LINK) oracle data technology. The company announced that the integration will serve to decentralize the core component of the protocol. The oracles will enable the AMPL protocol to adapt the daily fluctuating offer to the currency AMPL.
Unlike traditional cryptocurrency projects, the AMPL protocol does not have a rigid cap, but calculates an average price based on complex algorithms that take supply and demand into account. Ample is thus a commodity money, like gold, but with one difference:
Ample is a commodity money, like Bitcoin and Gold, with almost perfect supply elasticity, like Fiat. It is the first healthy money with an elastic supply.
As the company describes on its website, cap commodities such as gold and silver are naturally fair and independent as they are immune to inflation. However, they have the disadvantage that they do not react efficiently to changes in demand and are therefore vulnerable to cyclical fluctuations. Ample was developed to solve this problem:
ITo address this shortcoming, the project’s founders designed a synthetic commodity-money that propagates price-information into supply. […] This automatic supply policy is countercyclical and nondilutive, making the Ample immune to both runaway inflation and runaway deflation.
Chainlinks role in the Ampleforth Protocol
The integration of Chainlink was realized to decentralize and accelerate the process of data supply. The Chainlink oracles provide external data in the form of a data feed to supply smart contracts.
To calculate the fluctuating supply of AMPL currency, the Ampleforth Protocol automatically and proportionally increases or decreases the number of tokens each user has in response to the average price. The underlying data is now to be provided via the Chainlink oracles. Previously, Ampleforth was the only data provider. Thanks to Chainlink, Ampleforth will now have access to nine new price feeds: BraveNewCoin, Kaiko and CryptoCompare. AnyBlockAnalytics and KryptoAPIs will also be added in the near future.
Initially, Chainlink will provide the AMPL/USD 24h Volume Weighted Average Price (VWAP) daily, which provides information on the volume-weighted price. In addition to the market data, Chainlink will also provide the CPI Oracle with the current price target, the inflation-adjusted 2019 US dollar price. This value will be updated monthly based on Bureau of Economic Analysis personal consumption expenditure (PCE) data.
As part of the official announcement on Medium Ampleforth stated:
We’re thrilled to become the first monetary asset integrated with Chainlink’s oracle
Most recently, Chainlink has announced a collaboration with Binance to promote the development of the Decentralized Finance (DeFi) ecosystem. As the Malta-based exchange announced, it will use Chainlink’s technology to share its market data with DeFi projects.
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The Chainlink price has benefited from the new announcement and has risen 8% over the last 24 hours at the time of writing.