The Ampleforth + Chainlink Oracle Integration is Going Live

Evan Kuo
Evan Kuo
Dec 9, 2019 · 3 min read

Credit to Brandon Iles, Simon Manka, Nithin Krishna, Jessica Yen, and Ahmed Naguib Aly.

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“Can … you … see?” — Agatha Lively

We’re excited to announce today the completion of Ampleforth’s integration with Chainlink. This integration marks the first step toward furthering the decentralization of a core component of our protocol: the oracle.

An “oracle” is a service that makes real-world information available to blockchain platforms and is necessary for any smart contract application that interacts with the outside world.

The incorporation of outside data is also what allows the AMPL token to improve upon Bitcoin and other fixed supply commodity-monies like gold.

Unlike a fixed supply commodity, 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.

As such, accurate and decentralized sources of price and CPI information are core to creating a perfectly elastic commodity-money.

We’re thrilled to become the first monetary asset integrated with Chainlink’s oracle and have provided more details surrounding the integration below.

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Quick Summary

The Chainlink provider will supply daily AMPL/USD volume weighted average price (VWAP) from three different aggregators:

The Chainlink provider will also supply monthly CPI rates from the Bureau of Economic Analysis.

Integration Overview

Recall that the Ampleforth protocol utilizes both a Market Oracle and a CPI Oracle. 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. Below is an architectural diagram showing how Chainlink will plug in.

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AMPL Architecture Diagram — Note the addition of Chainlink as a provider to Market and CPI Oracles

Previously, the Ampleforth oracle provider was the sole supplier of both volume weighted price and CPI information to the Market Oracle and CPI Oracle. Moving forward, Chainlink providers will be supplying information alongside the Ampleforth provider.

Market Oracle Provider Architecture

Chainlink will provide daily AMPL/USD 24hr Volume Weighted Average Price (VWAP) from three different aggregators initially:

Soon after the initial launch: Two more providers will supply market info. AnyBlockAnalytics and CryptoAPIs,

Data reports from these aggregators are supplied by three independent node operators, in total nine different incoming price feeds.

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Market Oracle Provider Architecture Diagram

The aggregators cover all AMPL markets, which are at the time of writing:

  • Kucoin: AMPL/BTC, and AMPL/USDT
  • Uniswap: AMPL/ETH
  • Bancor: AMPL/BNT

CPI Oracle Provider Architecture

In addition to market data, Chainlink will provide the CPI metric as measured by the Personal Consumption Expenditure (PCE) from the Bureau of Economic Analysis, which is updated monthly.

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CPI Oracle Provider Architecture Diagram

As a quick reminder, the CPI Oracle ensures the AMPL price target is unaffected by central bank inflation.

Finally, Chainlink will also be making calls to Ampleforth’s rebase function daily.

You can view the state of Ampleforth by looking at the Overview Dashboard, and Oracle Dashboard. Thanks for tuning in,

Team Ampleforth





Ampleforth Blog

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