Adding AMPL on AAVE
01Summary
Proposal to add Ampleforth (AMPL), a rebasing currency with elastic supply, to Aave V2 as a borrowing asset. AMPL will initially be available for borrowing only (not as collateral) with custom aToken implementation to handle daily rebasing mechanics. The asset has been audited by Peckshield, tested extensively, and has a $100K Immunefi bug bounty with no critical issues found.
- Type
- protocol addition
Key changes
- Add AMPL as new borrowing asset to Aave V2 market with custom AToken implementation (aAMPL)(high)
- Implement specialized token mechanics to handle AMPL's daily rebasing - borrowed amounts remain fixed while unborrowed deposits participate in rebases based on utilization ratio(high)
- Custom StableDebtToken and VariableDebtToken implementations track totalScaledAMPL (fixed denomination) for proper accounting of borrowed AMPL through rebases(high)
- AMPL designated as borrowing-only asset initially; collateral status evaluation to be performed afterward(medium)
Notable concerns
- Market risk from first borrow/lending market for a rebasing currency
- Novel rebase mechanism requires custom implementation and ongoing monitoring
- Asset limited to borrowing only initially due to complexity of rebasing collateral mechanics
Generated by Kvorum
02Description
AIP rationale
Ample is the first rebasing currency of DeFi. It is an uncollateralized financial primitive with an elastic supply that adjusts each day according to demand in the marketplace. Like Bitcoin, Ample is non-dilutive but it has a long-term unit of account that unlocks safe denomination of debt.
References
- Forum proposal: https://governance.aave.com/t/proposal-add-support-for-ampl/854
- Project: https://www.ampleforth.org/
- Whitepaper: https://www.ampleforth.org/papers/
- Source code for the system(s) that interact with the proposed collateral: https://github.com/ampleforth/uFragments, https://github.com/ampleforth/market-oracle
- Ethereum addresses contracts: https://github.com/ampleforth/uFragments#ampleforth
- Audits both procedural and smart contract focused: https://github.com/ampleforth/ampleforth-audits
- Communities:
- Telegram: https://t.me/Ampleforth
- Twitter: https://twitter.com/AmpleforthOrg
- Discord: https://discord.gg/mptQ49m, https://discord.gg/T7XRSf8q
Paragraph Summary
Ample is the first rebasing currency of DeFi. It is an uncollateralized financial primitive with an elastic supply that adjusts each day according to demand in the marketplace. Ample targets the 2019 USD. Like Bitcoin, Ample is non-dilutive but it has a long-term unit of account that unlocks safe denomination of debt. The goal of Ampleforth is to create a building block for a safer, more resilient financial ecosystem.
Being able to borrow and lend AMPL would enable holders to:
- Utilize a new, low-correlated collateral asset which could reduce risk
- Decrease exposure to rebases in exchange for income from interest
- Use a non-collateralized asset that “borrows like a stablecoin"
- Create leveraged AMPL trades and unlock derivatives
- Create interest bearing AMPL that can be staked in other protocols
- Increase exposure to AMPL & farming
Motivation
AMPL total supply and balances change once every 24 hours (at 2am UTC) based on market price. The supply change factor is the same for all holders. Because of that, lending and borrowing AMPL behaves differently from fixed supply tokens.
The desired behavior is for the borrow amount (loan) to stay the same after a rebase. The unborrowed tokens deposited in the Aave protocol still get exposed to rebase just like any other contract wallet. This means aAMPLs "partially rebase", in accordance with the utilization ratio.
The AMPL AToken functionally behaves similarly to every other AToken. It maintains a 1:1 peg with the underlying AMPL.
Specifications
- What is the link between the author of the AIP and the Asset?
Co-founder, developer
-
Provide a brief high-level overview of the project and the collateral token See Summary
-
Explain positioning of token in the AAVE ecosystem: which market?
The asset will be listed in the current AAVE V2 market.
- Provide a brief history of the project and how it overcame stressed conditions
Ampleforth launched in July, 2019. Since then, Ample has executed over 550 days of rebases. The network was subject to extreme growth and volatility following the launch of the Geyser liquidity mining program in July 2020. It has shown resilience with a lifetime median price of $1.00 and average price of $1.02 (vs target price of $1.02). There are currently over 22K holders and is a top 100 currency by Market Cap.
Onchain network history viewable on Dashboard.
- How is the asset currently used?
Ample aims to be a financial building block that supports a robust and stable financial ecosystem. Borrowing and lending is a critical layer of this stack. Current roadmap.
- Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)
Ample has developed deep liquidity on AMMs like Uniswap, SushiSwap, Mooniswap, and a Smart Pool on Balancer through its liquidity mining program.
https://www.coingecko.com/en/coins/ampleforth#markets
- Social channels data (Size of communities, activity on Github)
Links above
- Risk Assessment and Parameter suggestions
AMPL has been evaluated as low technical risk because it doesn't have any potential of infinite or uncontrolled minting.
Given the novel mechanism of rebasing, it will only be used as a borrowing currency for the time being. An evalution of whether to give it collateral status will be performed afterward.
A 3rd party Audit report from Peckshield can be found here.
After some recommendations from Aave devs, we made small updates to the implementation. This included no behavioral changes but included using a different math library and method of initializating configuration. We then ran a second round of audits with Peckshield that raised no new issues.
Internal testing was performed with a mainnet fork.
We launched an Immunefi Bug Bounty for the aToken with a competitive $100K reward for critical vulnerabilities. This has also raised no issues.
Technical Specifications
We implement a custom AToken, StableDebtToken and VariableDebtToken for AMPL. The StableDebtToken and VariableDebtToken implementations make no functional changes to the generic implementation. When the debt tokens are minted and burned, it performs some additional book-keeping to keep track of the totalScaledAMPL (fixed AMPL denomination, ie Gons) borrowed at any-time. The new getAMPLBorrowData method returns the totalScaledAMPL and totalScaledSupply which are used for AAmplToken math.
Generic AToken has a private balance and public balance. The public balance returned by balanceOf is multiplied by an interest rate factor. The aAMPL works the same way but the AAmplInternal balance is multiplied by another factor, which accounts for the underlying AMPL rebasing and the amount of AMPL unborrowed.
Code
AAMPL token address: 0x6fBC3BE5ee5273598d1491D41bB45F6d05a7541A Code verified here
Steps the proposal will execute:
- Start a vote to add aAMPL as a new asset.
Test Cases
- Colab Notebook of test cases
- Unit tests included with code change provide full coverage for all borrow, repay, and rebase flows.
Security Considerations
- Standard technical risks of smart contracts apply to the AToken implementation.
- Market risk resulting from first borrow/lending market for a rebasing currency.
03Mismatch analysis
The decoded calldata consists of a single generic execute() call to an external payload contract, which is the standard Aave governance pattern: the actual asset-listing logic (initializing the aAMPL reserve, interest rate strategy, risk parameters, etc.) lives inside that target contract's bytecode and is not further decoded here. The description's stated action — 'start a vote to add aAMPL as a new asset' — is directionally consistent with this pattern, and there is nothing in the visible calldata (target address, lack of arguments, zero value) that contradicts the description. However, because the calldata does not expose the specific parameters (collateral factors, interest rate strategy, oracle, etc.) that the description discusses at length (e.g., 'used only as a borrowing currency, not collateral'), a reviewer cannot fully verify that the payload's internal configuration matches every claim in the prose. This is a common limitation for Aave AIP payload proposals and not evidence of a mismatch, but it does limit confidence in a strict line-by-line verification. No value, target, or role mismatches are apparent, and no omitted or extra actions are evident from what is decoded.'
Generated by Kvorum
04Actions
- Target
- 0x7de3…572f
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| C10xc17c…64e1 | For | 123.3K | 25.04% | — | 5y ago |
| C40xc4a9…2935 | For | 92.5K | 18.78% | — | 5y ago |
| 100x10f8…1f92 | Against | 90.7K | 18.41% | — | 5y ago |
| A30xa3f0…b233 | For | 63.6K | 12.92% | — | 5y ago |
| 5B0x5bc9…d76c | For | 52.6K | 10.69% | — | 5y ago |
| 3C0x3cb9…d491 | For | 28.9K | 5.86% | — | 5y ago |
| 8D0x8dcf…e751 | For | 18.3K | 3.72% | — | 5y ago |
| 470x47c1…4770 | For | 7.8K | 1.58% | — | 5y ago |
| 700x704d…a0df | For | 5.3K | 1.08% | — | 5y ago |
| 800x80dc…c146 | For | 3.3K | 0.66% | — | 5y ago |
| 510x510b…9938 | For | 1.6K | 0.31% | — | 5y ago |
| F50xf569…271b | Against | 1.1K | 0.23% | — | 5y ago |
| F50xf528…90df | For | 1K | 0.21% | — | 5y ago |
| 320x32a9…fb2c | For | 530.1 | 0.11% | — | 5y ago |
| A50xa523…29f6 | For | 482.6 | 0.10% | — | 5y ago |
| 4A0x4ada…1c6b | For | 340 | 0.07% | — | 5y ago |
| 910x9185…024f | Against | 150.4 | 0.03% | — | 5y ago |
| C80xc819…aea2 | Against | 140.6 | 0.03% | — | 5y ago |
| 130x13c9…cb03 | For | 109.5 | 0.02% | — | 5y ago |
| 220x22f3…a6e6 | For | 81.1 | 0.02% | — | 5y ago |
| D50xd599…c7bf | For | 79 | 0.02% | — | 5y ago |
| 7F0x7f18…caed | For | 73 | 0.01% | — | 5y ago |
| 4F0x4f27…dda2 | For | 70.7 | 0.01% | — | 5y ago |
| F10xf191…7914 | For | 49.6 | 0.01% | — | 5y ago |
| E50xe585…330e | For | 48.8 | 0.01% | — | 5y ago |
| AD0xad54…99d1 | For | 42.6 | 0.01% | — | 5y ago |
| CA0xca31…367d | For | 29.9 | 0.01% | — | 5y ago |
| 410x4185…26ff | Against | 28.4 | 0.01% | — | 5y ago |
| E10xe162…2b5c | For | 24.8 | 0.01% | — | 5y ago |
| 6C0x6c27…f8aa | For | 22.2 | 0.00% | — | 5y ago |
| 7D0x7dd7…49ec | For | 16.9 | 0.00% | — | 5y ago |
| 270x2713…d6e5 | For | 15.3 | 0.00% | — | 5y ago |
| 860x86d0…3629 | For | 14.1 | 0.00% | — | 5y ago |
| 8A0x8aba…7940 | For | 11.7 | 0.00% | — | 5y ago |
| D00xd0f5…cb91 | For | 10.9 | 0.00% | — | 5y ago |
| A90xa970…ef01 | For | 10.9 | 0.00% | — | 5y ago |
| DB0xdb71…d1a6 | For | 10 | 0.00% | — | 5y ago |
| 5F0x5f4f…e88d | For | 10 | 0.00% | — | 5y ago |
| 5B0x5b9b…b585 | For | 8 | 0.00% | — | 5y ago |
| 230x232c…439c | For | 6.8 | 0.00% | — | 5y ago |
| FE0xfe66…95cf | For | 6.2 | 0.00% | — | 5y ago |
| 320x32ca…c384 | For | 5.9 | 0.00% | — | 5y ago |
| DF0xdf93…d8b0 | Against | 5.2 | 0.00% | — | 5y ago |
| 250x2536…373d | For | 5.2 | 0.00% | — | 5y ago |
| 070x0716…e1de | Against | 5.1 | 0.00% | — | 5y ago |
| 9D0x9d94…428e | For | 5 | 0.00% | — | 5y ago |
| DD0xddfd…6a29 | For | 5 | 0.00% | — | 5y ago |
| 4C0x4c37…8011 | For | 4.5 | 0.00% | — | 5y ago |
| 780x7887…44e7 | For | 4 | 0.00% | — | 5y ago |
| EA0xea05…faed | For | 4 | 0.00% | — | 5y ago |
07Forum
- Proposal: add support for AMPL ↗discourse · high confidence
Arguments for
- AMPL's rebasing, non-dilutive, algorithmically stable-target design provides a novel uncorrelated collateral and debt-denomination asset that differs meaningfully from stablecoins reliant on centralized/fiat backing.— AMPL_Kirby, BNM, kbambridge, marzipanstar, brandon
- AMPL 'borrows like a stablecoin but holds like a non-collateralized asset', enabling unique trading strategies such as leveraged positions, rebase arbitrage, and interest-bearing AMPL.— brandon, yawobeng, MRSpock, cloudedlogic, kbambridge
- Listing AMPL would deepen liquidity, drive new traffic and users to Aave, and strengthen a partnership with a large, active, and technically engaged Ampleforth community.— Jag, asimoes, ScottS, damien, chainone
- The Ampleforth team has done substantial technical due diligence, including a custom aToken implementation, Chainlink price feeds, audits (Peckshield), and a bug bounty, showing readiness for safe integration.— brandon, Emilio, cloudedlogic
- Third-party teams (Protofire, Atomica) offered to build liquidation-protection/backstop infrastructure specifically to mitigate AMPL collateral risk, potentially justifying a higher LTV.— margaret_protofire, Elena.Atomica, Elena.Atomica.org
- AMPL's low correlation to other crypto assets (supported by Gauntlet analysis) makes it a useful diversifying collateral option that could reduce systemic liquidation risk.— kbambridge, brandon, GOATY
- Reducing DeFi's reliance on centralized, fiat-backed stablecoins with a censorship-resistant, algorithmic alternative is a valuable step forward for the ecosystem.— BNM, kbambridge, marzipanstar, cloudedlogic
Arguments against
- AMPL is highly centralized, with team/seed holders controlling a very large share of supply, creating risk of insider manipulation, especially combined with leverage on exchanges like FTX.— Coinninlingus
- The aToken design where only unborrowed AMPL rebases (not borrowed balances) creates an arbitrage dynamic that systematically transfers value from lenders to borrowers, especially harmful during positive rebases.— pakim249
- Supporting AMPL on Aave V1 is technically difficult since aTokens aren't upgradeable, requiring significant custom engineering and pushing the integration to V2.— Emilio
- Borrowers face uncertain long-term repayment risk if AMPL's market cap and rebase-driven supply grow dramatically over time, complicating debt planning.— refri
- Some thread contributions were low-substance hype rather than rigorous analysis, raising concern about the quality of governance discussion.— tonezone
Unresolved concerns
- Once live, the AMPL pool suffered from severe liquidity problems, trapping unsophisticated lenders who couldn't withdraw despite high APY, raising ethical and reputational concerns for Aave.— Stoto, ethereumin
- The rebase-driven arbitrage dynamic (only unborrowed AMPL rebases) could leave lenders as unwitting 'bagholders' absorbing negative rebases while missing positive ones.— pakim249
- How exactly liquidation risk would be managed under volatile rebase conditions, and whether proposed backstop/insurance mechanisms (Protofire/Atomica) would actually be implemented, was left open.— margaret_protofire, Elena.Atomica
- Concerns about AMPL's concentrated token ownership and potential for manipulation were disputed but never conclusively resolved.— Coinninlingus, damien
- Confusion among community members about how borrowing, lending, and rebase mechanics interact in practice was only partially clarified through back-and-forth examples.— refri, kbambridge
Notable participants
- brandonAmpleforth co-founder who authored the proposal and provided ongoing technical and governance updates through to on-chain submission.
- EmilioAave-side contributor who flagged technical constraints (V1 vs V2) and tracked progress of the AIP.
- kbambridgeFrequent, detailed advocate who explained AMPL's rebase mechanics and addressed community questions about loan behavior.
- pakim249Raised a significant technical objection about arbitrage risk to lenders from the aToken rebase design.
- margaret_protofireProposed a liquidation-protection service to mitigate AMPL collateral risk on behalf of Protofire.
- CoinninlingusRaised centralization and manipulation concerns about AMPL token distribution, sparking pushback.
- refriAsked clarifying questions about rebase/loan mechanics, helping surface community confusion.
- cloudedlogicProduced explanatory content and repeatedly advocated for the proposal, also pushed back against criticism of thread quality.
- tonezoneCriticized the thread for being hype-driven rather than substantive.
- StotoReported real-world post-launch liquidity problems affecting lenders, raising reputational concerns.
Generated by Kvorum
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