Editors Note: This article comes fromChatting with Xiaozha (ID: xiaonazha88), reprinted by Odaily with authorization.
Editors Note: This article comes from
Chatting with Xiaozha (ID: xiaonazha88)
Chatting with Xiaozha (ID: xiaonazha88)
AMPL has been below $1 for 22 days, and AMPL has deflated for 22 days. If you hold it from August 3 to now, it means that your AMPL has been reduced by 46%.
However, at the end of the month, AMPL in the AMPL ecosystem will soon unlock another 3 million AMPL. Is this AMPL okay?
As for whether it will work or not, I dont know. Conversely, why can AMPL get up? Is it just fueled by FOMO? Thats one of the reasons, not the main one.
He Taiji’s point of view is quoted here: Generally speaking, the growth of the token market value comes from the growth of demand, and the demand is manifested in three aspects: 1. The growth of value lock-up (such as the increase of liquidity pool, the increase of currency on large exchanges, and the increase of the number of currency-holding addresses) ) 2. Fomo sentiment (users greed drives purchase demand) 3. Practical application needs (used in many scenarios for mortgage, payment, etc., mining is also a scenario)
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1. Why does AMPL rise, market demand?
In order for AMPL to rise, value lock-up and application scenarios need to be improved. At present, DeFi mainly includes transactions, lending, and mining.
For AMPL, the application scenarios will increase and AMPL will be stronger if it enters into various DeFi protocols; and if AMPL is to enter into various DeFi protocols, AMPL itself needs to be stronger before it can be accepted.
And how does this roller move? Who will push it? Before talking about this, let’s take a look back, why did the last wave of AMPL rise?
AMPL has been online since July 2019, and has been tepid. Why did the first wave of big waves start after the launch of uniswap?
A large amount of AMPL is locked in uniswap for market making, first to provide liquidity for the market, and second, to find a place and application scenario for the inflationary AMPL, that is, liquidity mining. Therefore, look at the price change curve of AMPL.
The value of AMPL is locked, the market demand increases, and the price of AMPL increases, which stimulates the Fomo sentiment in the market and pushes AMPL to a new height.
After the AMPL bubble burst, there are still a large number of AMPLs making markets on uniswap, and some basic needs are still there.
So in the next round, can AMPL still rely on the liquidity of DEX to mine?
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2. Reflections on the three events of AMPL
After the AMPL bubble burst, there were three very interesting events, namely:
1. AMPL is included in the watch list by Coinbase
2. YAM goes online, adding AMPL/ETH transaction pair mining
3. 1inchs mooniswap is launched, and AMPLs market-making rewards are doubled
All three incidents spurred AMPL back to around $1 briefly, but then down again.
Event one is a short-term news stimulus. Events two and three can be regarded as demand stimulation.
Event 2, due to the collapse of YAM, the market demand for AMPL was suddenly interrupted, and AMPL fell along with the trend;
Incident 3, multiple AMPL trading pairs were added to mooniswap, and the market demand increased, but the demand for this kind of liquidity market making has not been greatly expanded on the original basis. The price of AMPL also went down after a gamble.
Therefore, simply relying on increasing liquidity and market-making rewards on DEX cannot stimulate AMPL and push the wheels to roll, and other forces are needed, such as YAM’s similar mining needs and so on.
3. AMPL’s roadmap, AMPL will promote it by itself
Who will push the wheel of AMPL? The AMPL project party launched flexible finance. What is flexible finance, we have to wait for more introductions from the project party.
Lets take a look at the roadmap of AMPL. From adding liquidity to market making on mooniswap, to releasing elastic AMM, to mortgage lending, and finally providing a cross-chain bridge.
It is no longer possible to expand the market demand for AMPL on other DEXs, so make one yourself. If AMPL is used as the base transaction currency on this elastic AMM, then the demand for AMPL will be greatly expanded, and AMPL that will be inflationed in the future will have a place to go.
If it is not enough to just lock AMPL on DEX, at most it will return to the peak of the previous round or engage in a little bit.
Only when AMPL can enter the lending field will there be major changes, which will increase the application scenarios of AMPL.
I don’t know how to do AMPL’s elastic lending, so here is a simple possibility reasoning. For example, the ampl/eth liquidity mining certificate on uniswap can go to the lending platform for mortgage lending, so what benefits will it bring?
For users, holding ampl can not only enjoy the rewards of liquidity market making, but also allow this part of assets to flow and generate more benefits. Users demand for AMPL will greatly increase. Refer to the mining when YAM first came out .
For the AMPL project, the larger the fund pool in the liquidity market-making, the smaller the price fluctuation of AMPL. AMPL, an algorithm-driven empty-handed stablecoin, has actual collateral and a liquidity mining fund pool.
