Overview of SPOT: Ampleforth’s ‘Low-Volatility’ Alternative

Ampleforth has introduced a new digital asset, SPOT, with funding from Coinbase Ventures. This asset is designed to track the Consumer Price Index, providing a low-volatility alternative to fiat stablecoins to combat inflation.

Key Features of SPOT

• SPOT is created by segmenting the volatility of Ampleforth’s native currency, AMPL, into two separate assets: SPOT (low-volatility) and stAMPL (high-volatility).
• Users can deposit AMPL to mint SPOT and stAMPL, or redeem these derivative tokens for AMPL at their discretion.
• The fixed-term tranches of SPOT are constantly recycled to maintain continuity, providing a perpetual derivative instrument to manage volatility.

Addressing Market Concerns

With economic uncertainties and increasing inflation rates worldwide, SPOT aims to offer a stable digital asset that can serve as a store of value. This initiative comes at a time when market participants are exploring alternative strategies to hedge against inflation and preserve wealth.