Stablecoins
Introducing SPOT: A New Volatility-Resistant Digital Asset
Tuesday. July 9 at 12:30 PM
1 min. readFragments, the creator of the Ampleforth protocol, along with the Ampleforth Foundation, have revealed plans to launch SPOT, a digital asset designed to offer stability by combining elements of commodity-based money and peer-to-peer digital cash. SPOT aims to reduce volatility by dividing Ampleforth's native currency, AMPL, into two separate assets through a process called tranching. The 'senior tranche' is the low-volatility SPOT token, while the 'junior tranche' is a staked version of AMPL that absorbs most of the network's volatility. Users can mint SPOT and stAMPL by depositing AMPL tokens, which can be redeemed for AMPL at any time. The tranches have a fixed one-week term and automatically convert to AMPL upon maturity. SPOT's minimum volatility levels are expected to match the 2019 U.S. dollar consumer price index. This initiative comes amidst concerns of inflation and geopolitical instability, with some suggesting dollar-pegged stablecoins as a solution to mounting debt and monetary issues.