After spiking parabolically into the end of July, the pseudo-stablecoin Ampleforth (AMPL) suffered a large correction. Since its Jul. 26 highs, the price of the cryptocurrency has dropped around 70 percent. And the market cap of AMPL, which is how the coin’s performance is supposed to be measured, has collapsed by more than 50 percent.
AMPL is finally bouncing back after its drop, though, rallying over 30 percent in the past 24 hours according to CryptoSlate data.
This strong bounce in the multi-million-dollar asset can be boiled down to one thing: the launch of the latest decentralized finance craze, Yam Finance, whose native token is YAM.
Ampleforth jumps 35% as Yam Finance launches
On Aug. 11, the Ethereum ecosystem was blessed with its latest protocol: Yam Finance. Created by five developers, the protocol is an experiment attempting to meld the best the DeFi world has to offer, including the fair distribution of YFI, equitable on-chain governance, and the elastic price supply of AMPL.
YAMs = Ponzinomics of AMPL + Chad launch of YFI + Meme math of Tendies
— Ryan Watkins (@RyanWatkins_) August 12, 2020
Core to Yam Finance is YAM, an Ethereum-based token that can only be obtained through one of three ways:
- Buy it on Uniswap, other decentralized exchanges, or the limited number of centralized exchanges that support it.
- Add yCRV, a “meta” or aggregate stablecoin issued by Curve, and YAM to a specific Uniswap pool
- Add one or multiple of the eight following tokens to Yam’s stake pools to earn YAM on a per-block basis: Wrapped Ethereum, Yearn.finance, Chainlink, Maker, Aave’s LEND, Synthetix Network Token, Compound, and the ETH-AMPL Uniswap Pool Share.
To obtain the latter token mentioned, the Uniswap Pool Share for ETH-AMPL, one must deposit an equal amount (dollar-value-wise) of ETH and AMPL into Uniswap.
Ampleforth is surging because there has been an influx of demand for the cryptocurrency as investors have sought to maximize their YAM returns by obtaining pool shares, then depositing that token into Yam Finance.
AMPL isn’t the only DeFi coin affected
AMPL isn’t the only token being affected by the YAM craze.
Maker, Aave’s LEND, Synthetix Network Token, Compound, and Chainlink have seen serious rallies in the 24 hours since the launch of Yam Finance. All these tokens have gained at least 20 percent, with LEND and LINK in particular establishing new all-time highs due to the one protocol.
It’s important to note that despite pulling in hundreds of millions of dollars worth of value, Yam Finance is entirely unaudited.
Ampleforth, currently ranked #57 by market cap, is up 24.53% over the past 24 hours. AMPL has a market cap of $229.49M with a 24 hour volume of $52.93M.