Ampleforth

Ampleforth is a decentralised finance protocol designed to support a resilient digital monetary system through a set of modular components. It introduces an alternative approach to building foundational financial tools by separating the role of a unit of account from the role of a store of value. The protocol includes multiple interoperable components, including:

• AMPL, a unit of account token with an elastic supply mechanism
• FORTH, a governance token used to propose and vote on protocol changes
• SPOT, an inflation-resistant token backed by AMPL-based derivatives

Ampleforth’s central idea is to create a stable unit of account that does not rely on centralised collateral or custodians. Instead of stabilising price through reserves or intervention, it adjusts supply algorithmically in response to demand, aiming for a long-run average value that tracks the CPI-adjusted 2019 USD.

This architecture supports a range of decentralised use cases including on-chain lending, borrowing, derivative creation, and decentralised stablecoins without introducing traditional custodial risks.

AMPL is an ERC-20 token that serves as the base unit of account within the Ampleforth ecosystem. Unlike traditional tokens with fixed supply, AMPL implements an elastic supply model in which the quantity of tokens in each user’s wallet automatically increases or decreases once per day based on market demand.

The token’s price targets the 2019 USD adjusted for inflation, but the protocol does not intervene in markets to achieve this. Instead, it proportionally rebases token balances across all holders when the price deviates from the target, allowing the price to gradually return to equilibrium over time.

AMPL is fully decentralised, algorithmic, and non-custodial. It does not require collateral, market makers, or central parties to maintain its price stability properties.