Ampleforth, along with the Ampleforth Foundation, has unveiled a new digital asset called SPOT. Designed as a low-volatility alternative to fiat stablecoins, SPOT combines the characteristics of commodity-based money and peer-to-peer digital cash. Its stability is achieved through a process called tranching, which divides the volatility of Ampleforth’s native currency, AMPL, into two assets. The “senior tranche” generates the low-volatility SPOT token, while the “junior tranche” is a staked version of AMPL that absorbs most of the network volatility, protecting SPOT from significant price fluctuations. Users can deposit AMPL tokens to mint SPOT and stAMPL, and these derivative tokens can be redeemed for the native AMPL at any time. The tranches have a fixed term of one week and automatically convert back to AMPL upon maturity, contributing to the stability of SPOT. The launch of SPOT is timely, as it addresses concerns over rising inflation and the U.S. national debt, which is approaching $35 trillion. These economic factors highlight the potential demand for stable digital assets like SPOT. In a show of confidence, Coinbase Ventures has invested $1 million in SPOT, supporting its development as a low-volatility digital asset and an alternative to traditional fiat stablecoins.
