The price of the LINK token has gone up over 11% in the past 24-hour period after Ampleforth team announced that it had completed its integration with Chainlink.
Ampleforth can be thought of as a “synthetic commodity” that tries to algorithmically maintain purchasing power. Rather than having a fixed supply like Bitcoin, the Ampleforth protocol “automatically and proportionally increases or decreases the quantity of tokens each user holds in response to average price, propagating price information into supply much as thermal expansion propagates nearby kinetic energy into a material’s volume.”
This means that the Ampleforth protocol needs real-time pricing data for the AMPL token as well as Consumer Price Index (CPI) data.
The integration with Chainlink will allow Ampleforth to obtain “daily AMPL/USD volume weighted average price (VWAP)” from three crypto market data providers (CryptoCompare, BraveNewCoin, and Kaiko) via Chainlink’s decentralized oracle network.
Data feeds from these three market data aggregators are “supplied by three independent node operators, in total nine different incoming price feeds.”
Chainlink will also provide supply monthly CPI rates “as measured by the Personal Consumption Expenditure (PCE) from the Bureau of Economic Analysis.”
The Ampleforth protocol uses two oracles:
The Market Oracle receives information about volume weighted price. The CPI Oracle provides the current price target, the inflation adjusted 2019 US dollar. Together these two pieces of external information determine the magnitude of supply adjustments in each rebase period.
Here is a diagram from Ampleforth’s blog post showing Chainlink’s place in the Ampleforth architecture:
This means that from now on, “Chainlink providers will be supplying information alongside the Ampleforth provider.”
This news was announced by Chainlink on Twitter around 22:20 on December 9:
.@AmpleforthOrg, a smart commodity money, is using Chainlink mainnet oracles to obtain market prices to set elastic money supply policy in a more decentralized & secure manner. Thanks @CryptoAPI, @get_eth_events and @KaikoData for providing this key data. https://t.co/xxIivQlh3p
— Chainlink – Official Channel (@chainlink) December 9, 2019
Shortly afterwards, according to data from CryptoCompare, the price of the LINK token started going up; currently, LINK is trading at $2.269, up 11.44% in the past 24-hour period:
Featured Image Credit: Photo via Pixabay.com. Architecture diagram courtesy of Ampleforth.
