A low volatility store-of-value that makes no compromises on durability or decentralization
The alternative to ETH as collateral,
designed for today's DeFi infrastructure
Annual Rate of Return
30.19%
Avg 7-day Volatility
2.54%
Avg 30-day Volatility
6.78%
SPOT’s free-floating price allows the asset to remain flexible when faced with volatility, it bends rather than breaking under extreme market conditions.
SPOT's decreased volatility allows DeFi builders to create systems that are highly capital efficient and less prone to liquidations.
SPOT allows builders to create robust systems without centralization. The asset is entirely on chain, uses no centralized custodians, and no centralized collateral.
SPOT is the collateral for USDaf — a high-yield synthetic dollar coming to the Curve ecosystem. Learn about Asymmetry's stablecoin.
describe $spot
Commodity monies like gold and bitcoin are durable, decentralized, and inflation resistant, but they aren't stable enough for commerce.
SPOT is a low-volatility commodity money. It's durable, decentralized, and inflation resistant, like a commodity money, only far less volatile. The SPOT token is created by reorganizing the volatility of its underlying collateral asset (AMPL) into two derivative assets (SPOT, stAMPL):
Holding SPOT and stAMPL together (in the minting ratio) is like holding AMPL because volatility is conserved in the system. This is a significantly better way of creating stable decentralized assets.
SPOT is a low volatility commodity money. Holders of SPOT benefit from durable long-term stability. Any SPOT holder can pair it with USDC to generate volume-based fees by staking on Uniswap. For answers to common questions about SPOT see the FAQ.
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SPOT: 0xc1f33e0cf7e40a67375007104b929e49a581bafe
AMPL is the underlying collateral that enables SPOT protocol. Any holder of AMPL benefits from SPOT's network growth. Stakers additionally earn rewards and help secure SPOT as a store of value by depositing their AMPL in the rotation vault. Holding staked AMPL is similar to holding AMPL with magnified volatility. To the learn about AMPL visit the ampleforth website.
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AMPL: 0xd46ba6d942050d489dbd938a2c909a5d5039a161
“Genius hits a target no one else can see.” — Schopenhauer
So what do we mean by the asset that’s missing? Plainly, we mean an asset that integrates the best of fiat monies (like the dollar) and commodity-monies (like gold or Bitcoin) ... read more
describe $spot --benefits
Key Benefits of the SPOT Protocol
SPOT does not rely on any centralized collateral. This means assets cannot be forcibly seized or frozen by administrators of the system.
Both SPOT and stAMPL are floating price tokens that represent claims on collateral. Just as UNI-V2 LP tokens can occupy any price without breaking, so can SPOT and stAMPL.
Both SPOT and stAMPL are simple proportionally redeemable claims on baskets of collateral. Just as UNI-V2 pools can unwind to an empty set without triggering bank-runs or cascading-liquidations, so can SPOT and stAMPL.
Each SPOT is redeemable for approximately 1 2019 USD worth of value and the token can be held as a refuge from long-term inflation. This is because SPOT is a freely redeemable claim on AMPL which targets the CPI-adjusted dollar.
SPOT adoption translates into demand for AMPL allowing the system to scale. This is unlike liquidation market based systems which rely on continuous demand for leverage on collateral to scale (ie: demand for DAI does not translate into demand for ETH).
SPOT's collateral is tranched in a manner that progressively degrades into its base-asset (AMPL) under stress rather than triggering bank-runs or cascading liquidations. In times of turmoil the system bends safely rather than breaking, by becoming temporarily more volatile.
Flatcoin is a general term of art used to describe a new generation of stable assets that track purchasing power metrics other than the US dollar.
SPOT is a decentralized flatcoin designed to bend rather than break under extreme circumstances. More precisely, SPOT is a low volatility commodity money.
The SPOT token is extremely durable. Its protocol has no peg and no catastrophic breaking conditions. In extreme market scenarios the token simply becomes temporarily more volatile, bending rather than breaking.
Instead of a peg, SPOT has a bounded range of volatilies. In its typical state, where all the tranches in SPOT’s collateral set are fresh, the token is stable. But in the most extreme condition, where all the tranches in SPOT’s collateral set have matured, SPOT is precisely as volatile as AMPL.
For more context, read: The SPOT Flatcoin — A Low Volatility Derivative.
SPOT integrates the best of fiat monies like the dollar and commodity-monies like gold or Bitcoin. SPOT is:
To understand why low volatility commodity monies are important and how SPOT fits into this new asset class check out:
AMPL is the underlying collateral asset that enables SPOT protocol. It is a price stable, but supply volatile cryptocurrency. AMPL's unit of account function greatly simplifies the creation of on-chain derivatives through tranching. To learn about tranching see the SPOT primer.
Any holder of AMPL benefits from SPOT's network growth.
SPOT and Ethena use very different approaches. Ethena creates stability and yield through delta neutral positions across centralized exchanges. The SPOT protocol uses tranching to reorganize the volatility of a medium volatiltiy asset (AMPL) into high and low volatility perpetual derviatives. The most notable differences are:
SPOT and DAI use very different approaches. DAI creates stability through liquidation markets. The SPOT protocol uses tranching to reorganize the volatility of a medium volatiltiy asset (AMPL) into high and low volatility perpetual derviatives. The most notable differences are:
Note: Liquidation market based approaches are vulnerable to cascading liquidations and are difficult to scale in general — hence their use of centralized collateral (like USDC).
SPOT is a low volatility derivative. It is a one-directional claim on a basket of collateral that has no peg and no death-spiral minting mechanics.
Instead of a peg, SPOT has a bounded range of volatilies. In its typical state, where all the tranches in SPOT’s collateral set are fresh, the token is stable. But in the most extreme condition, where all the tranches in SPOT’s collateral set have matured, SPOT is precisely as volatile as AMPL.
For more context, read: The SPOT Flatcoin — A Low Volatility Derivative.
The enrichment rate is a reward paid to spot holders by stakers in the rotation vault. When SPOT is enriching at X%, this means the redeemable value of SPOT is growing at X% per year.
To learn more about it see: SPOT v2 — Enrichment, debasement, and the cost of stability.
Rebasing is the process of automatically adjusting the quantity of units in user wallets based on demand. AMPL rebases, but SPOT does not.
To learn more see the official website.
For an overview of how the system works read the SPOT primer.
We'd love to meet you. Members of the community can help answer questions you have about the SPOT protocol and staking programs.