AMPL basket of currencies? A money printing machine in DeFi? Very airy and magical

Editor's Note: This article comes fromChatting with Xiaozha (ID: xiaonazha88), reprinted by Odaily with authorization.

Editor's Note: This article comes from

Chatting with Xiaozha (ID: xiaonazha88)

Chatting with Xiaozha (ID: xiaonazha88)

, reprinted by Odaily with authorization.

AMPL is in a downturn, but the more I think about it, the more fascinating it is, it's so innovative.

Here I continue to share a few thoughts on AMPL, of course, they may all be wrong.

1. What kind of stable currency will AMPL become?

2. The right to print money under the AMPL new system

3. Reflections on AMPL's flexible finance

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1. The precipitated funds in uniswap are reused

In the cultivation and mining of YAM, there are 8 pools, 7 of which are mortgage mining in single currency, and the last pool is uniswap’s ampl/eth market-making mining. This is the first time I have seen mining with liquid market-making funds.

Later, a bunch of YAM imitation disks appeared, among which the frequency of single-currency mining was reduced, and the proportion of market-making funds mining on uniswap was getting higher and higher.

At first I thought it was a DEX exchange, but when I opened it, it turned out to be an imitation of sweet potato. After a closer look, most of the mining uses the liquid market-making funds on uniswap for mining.

A large amount of market-making funds have been deposited on uniswap, and it seems that they have no other purpose except to put them there for liquidity mining. And YAM mining digs them out, so they can be used again.

At the same time, mining in this way can also stimulate the market demand for corresponding liquidity market-making tokens. For example, some circular mortgage mining directly increases the currency price.

I think in the near future, there may be more ways to use the market-making funds in uniswap for the second time. This is like in life, buying a house, renting it out to earn rent, and at the same time going to the bank for a mortgage.

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2. Is AMPL a basket of currencies?

AMPL is an algorithmic stablecoin that is prone to inflation and deflation. It is extremely unstable and is an air currency.

Think about a question, if AMPL has a large amount of market-making funds in various DEXs, can these market-making funds be understood as some kind of "reserve" for AMPL?

Going back to the previous question, the market-making funds on uniswap are used again, which is equivalent to one fund, that is, you can enjoy the market-making rewards on DEX, and you can also enjoy mortgage loan rewards. One fund has two benefits. Then the user's desire to mortgage will be stronger, forming a positive cycle. Once this cycle is formed, it will be able to attract a lot of funds.

A large number of XX coins are anchored with AMPL, so the larger the capital pool of AMPL, is AMPL like a basket of currencies?

Of course, this is also a change brought about by DEX. The amount of funds in the trading pair is transparent and everyone can clearly see it.

Currently AMPL is incentivizing 8 trading pairs on mooniswap in an attempt to expand AMPL's liquidity pool and allow AMPL to enter more DEXs.

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3. Holding AMPL means holding the money printing machine of the new system?

The following is AMPL enthusiast "unc"'s thoughts on the money printing machine under the DeFi system.

The current centralized trading and gameplay, etc. belong to a relatively old system, and now it is likened to a big bubble for the time being. Why is it a bubble? Because many people have a floating surplus and not a real surplus. Well, the main contributor to building and blowing up the bubbles of the old system should be usdt, which keeps printing and inflating, making us naively look like the purchasing power of u in our hands can still be the same as yesterday. The continuous inflation of u in the early stage can stimulate the rise of btc. There is no way, the money always goes to one place. And recently u may have been out of the circle, and the supervision is quite serious.

Since the end of last month, I have stopped playing centralized exchanges, and gradually jumped out of the old system, because all the coins I want are on DeFi, which is pretty good except for the high handling fees and the inability to place orders. . Now taking defi as a new system, the prototype of this system has already come out. Why, because neither bird nor centralized exchange can operate well, which is a bit of a dimension-raising blow. And in addition to uniswap, balancer has also broken through the daily turnover of 100 million US dollars, which are all real transactions. At present, the bubble of this new system may not be as big as that of the old system, but it is gradually expanding. Now think about what is missing, the role of usdt is missing, because as long as the usdt money printing mode is turned on, the price can be raised and people can be cut off. However, in the new system, it seems that few trading pairs are linked to usdt. It can be said that the money printing machine of the old system is no longer a bird. We need to build our own decentralized (everyone can print money) money printing machine. So this money printing machine is currently ampl. Because of the rebase function, this bubble can be blown up. Why do you think so, because I see signs of it. Except that when Uniswap used eth/ampl as a trading pair in the early stage, it had a good effect, raising apl, ampl inflation, and some people smashed the short-term floating profit, some people exchanged back to eth, some bought btc, and some bought other defi currency. The bubble started to blow. 1inch announced 8 liquidity pools yesterday, each trading pair is anchored by ampl, why not use usdt? ! (1inch is an aggregated decentralized exchange invested by Binance)

Because only ampl is raised, after inflation, the short-term floating profit will flow to other coins, prompting other coins to also have a short-term floating profit, everyone has a short-term floating profit, then this bubble can be blown up .

Going back to the beginning, from the centralized usdt that only a few people can print money to the current model that holds ampl to print money, which one is more interesting and which one is more imaginative, I choose the latter. Which storage pool the money after inflation flows to, I guess it is not btc, the world of defi has already had their boss, it is yfi, not btc.

Now there is a tube inserted between the bubbles of the old system and the bubbles of the new system, and this tube connects the exchange and transformation of the two systems. This pipe is the eth-ampl trading pair.

I am looking forward to the next game. Let’s see what these 8 trading pairs can do. If the bubble can be blown bigger, it will be even crazier. Because the banker directly anchors the coins they want to issue with ampl, pulls ampl, and uses the inflation money to pull their own 0-cost air coins, cutting back and forth on both sides. Of course, the largest banker is still the ampl project party. It depends on how ambitious they are. .

If you really play like this, it is not too much to use ampl as a household money printing machine.

UNC has a deep insight into AMPL, and the view of AMPL as a money printing machine under the new system shocked me. The possibility of AMPL is too great.

4. AMPL's Elastic Finance (EeFi)

In the latest roadmap of AMPL, it is to do elastic finance (EeFi). What kind of stuff is this, we have to wait for the official interpretation.

The following is AMPL enthusiast "A Fei"'s thinking on flexible finance.

What the hell is elastic finance? This is a very good question. The most valuable thing here is the word elasticity. Elasticity can provide a buffer. Imagine that if you establish a transaction pair between ampl and various currencies, there will be many forms of buffering:

1. Realize the ups and downs among each trading pair to achieve a global balance;

2. Now there is only one price dimension, plus a quantity dimension, and the room for maneuver with two dimensions will definitely be greater than one.

At present, all currencies have a constant price variable, while ampl has a double variable price and volume. From one-dimensional to two-dimensional, the complexity is greater but the functions provided will be more. The biggest value of this two-dimensional currency should not be to let The total value is more elastic, but it provides the largest buffer through elasticity to achieve global balance. This is my understanding of elastic finance, but this is certainly only a small part of the value of elastic finance.

At present, the double change of price and volume is also very troublesome. As collateral, its price and quantity must be calculated at the same time, and the quantity is changed every 24 hours. There is a time difference. To achieve real-time synchronization, the existing system must cooperate.

In my opinion, there are two current values ​​of elastic finance: 1. Provide a negative correlation with Bitcoin; 2. Provide the ebb and flow of various local prices. So the purpose of resilience is not to attack, but to provide a cushion for the entire blockchain economy.

On the other hand, if the market value of ampl is large enough, such as reaching one trillion U.S. dollars, its own volatility will be very small, and the market value will not fluctuate greatly.

At the same time, ampl has reserved a fund pool, which is a very important thing. It is the reserve fund, which is the core tool of the currency. If a currency without a reserve fund system wants to be a stable currency, it is nonsense.

At the same time, because of the change in quantity, it will reduce the mentality imbalance of the later currency holders. After all, the currency in one's hand can give birth to babies, which is also an excellent marketing tool.

Among the current blockchain projects, one out of 1,000 may truly understand the essence of currency.

In particular, blockchain currency is a brand new species, and historical experience is even an obstacle.

Traditional currencies are not difficult to understand, but to invent a brand new high-dimensional currency requires great imagination and cognition.

At any rate, Bitcoin still has a mining cost to make up the number. APL has zero cost, is the most thorough, and is the true religion.