Transcript of the Ampleforth office hours on 06.01.2022
Evan:
We have a marketing video coming out for wAMPL
https://app.frame.io/presentations/0779f2e2-fedd-4a39-b45e-b406beca9d54. Still pretty excited about wAMPL, I know Brandon has been thinking through the Balancer integration.
And we also have a FAQ entry for wAMPL now
https://faq.ampleforth.org/wampl.
Simon:
Here is the wAMPL explainer, on YouTube https://youtu.be/1ec77Y9b4Aw
Brandon:
I see some questions on Balancer, here’s an update on that:
We’re working on a couple different things that build on each other. The first is an addition to the order router. This addition will automatically wrap and unwrap AMPL <-> wAMPL. So wAMPL can be stored in the Balancer pools, with full support of Balancer v2, and users will be able to seamlessly trade against AMPL or wAMPL without necessarily caring where it comes from. So this unlocks liquidity for both assets.
Next, we’re working on adding a Boosted Pool for AMPL. This is a special kind of pool that pairs interest-bearing aAMPL against wAMPL. This itself does a couple things. It adds liquidity for aAMPL, like the Mooniswap pool (but modern platform). But most importantly this boosted pool can also be a “sub pool” of regular pools. So Instead of a wETH/AMPL pool, it would be a wETH/(aAMPL/AMPL) pool.
This lets LPs have some of their assets sit in Aave, gaining interest in addition to the Balancer trade fees (and maybe some other income generating program? :P) If we wanted to go all out, WETH could be replaced with wrapped staked ETH from Lido, so both sides are yield generating. So I think it’s pretty exciting.
Evan:
Also a great way of drumming up wAMPL —> AMPL volume
Question 1:
Ever thought of developing a novel peg?
Brandon:
We don’t use the term “peg” with AMPL, because AMPL isn’t collateralized. Instead we talk in terms of the “price target”. I.e. there isn’t a peg that’s “defended” or “backed by reserves” that can run out or be run on.
The price target isn’t anything in particular, except for a specific amount of purchasing power. So instead of thinking about what we target, I think of it as “how it’s measured”.
Right now, we use the PCE from the BEA, but this isn’t the only way to measure. It has it’s own strengths and weaknesses, but no other method is perfect as it’s hard to even say what’s perfect to begin with.
So yes, the project has always considered this function as something that can be changed out or upgraded if it were ever needed or a better measurement method was developed.
Evan:
For sure, I think a price target that isn’t based on any sort of government specific measure would be great.
Like a basket of commodities. Hayek proposed wheat, rubber, oil, cotton.
Ultimately one that could be updated by a community over time would make sense.
Still, I think the biggest challenge isn’t necessarily creating a stable price target, but holding one reliably without traditional assets as collateral
Follow-up question:
But aren’t these commodities measured (denominated) in the dollars? So it’s still like ending up at square one?
Evan:
like if one “AMPL” is always equivalent to {i}g wheat + {j}g of rubber + {k}g of cotton.
Question 2:
Any plans to peg AMPL to gold and have a gAMPL?
Brandon:
I don’t think rebase is the right technique to target something like an index or other asset. The gains and losses of gAMPL wouldn’t be related to the changing value of gold, it would be related to the changing demand for gAMPL.
Aalavandhan:
I think this is possible with the buttonwood rebasing wrapper + tranche though. It’s something I stumbled upon last year. We can engineer an asset with any arbitrary payoff function.
So if anyone wants to build a version of Synthetix without the SNX token, hit me up on the PRL discord and I can tell you how.
Question 3:
What is the status with the new rebase formula?
Brandon:
Naguib is doing some more analysis right now. It’s progressing and hope we can have something fit to present when it’s ready!
Question 4:
Any plans to ramp up marketing/communications? We were doing well with daily tweets in excitement on our run up from $100M to $500M.. then everything completely died off.. and there hasn’t been a proposal or a comment on forum for a month. It’s relieving to see some content and videos you guys are working on. Any update on full website?
Evan:
Yeah website is just waiting on an illustrator, sucks that we’ve seen some delays.
Some news on the marketing personnel side as well coming soon.
Question 5:
Will the roadmap be updated?
Evan:
I think the big picture is actually best painted in the durability report: https://faq.ampleforth.org/durability
The short version is we want to get AMPL used as a unit of account, as widely as possible. First for debt-denomination, then for derivatives, lastly as collateral for a safe-asset.
Everything will fall from there, but the ordering might change based on third party timelines.
Question 6:
Does the team plan to implement a chain link oracle for wAMPL soon? This is a limiting factor for integrating wAMPL with many other protocols.
Brandon:
This is easy to spin up, provided there are healthy enough markets that can’t be manipulated. (That’s the harder part).
Question 7:
Will there be a way for pure AMPL holders to generate income without facing impermanent loss? Since with Aave you can lose money during positive rebases.
Brandon:
Have you seen the USDC Smart Pool?
https://blog.ampleforth.org/ampl-usdc-smart-pool-on-balancer-be8eed9a264a.
Question 8:
Will there be things that help with ease of access? Since buying on Uniswap is pricey due to gas prices.
Brandon:
I’d say this is a top priority. When your old CS pals are asking you how to get stuff on chain, you know it needs to be easier.
Question 9:
The BENQI team has mentioned their limiting factor for launching AMPL has been healthy liquidity of AMPL on Avalanche. Is there anything the team or the community could do to offset this?
Brandon:
I think this was their answer to wAMPL, but in any case I expect an Avalanche geyser in the next round. The next round of geysers starts when the current programs end (currently mid-January).
Question 10:
What about AMPL on other L2s ? For more accessibility…
Brandon:
We’re keeping a close eye on Arbitrum and StarkNet.
