SATO, A Better Version of AMPL
Intro
In the crypto world, the consensus of “cryptocurrency equals money” has not yet been formed. For example, we will feel that BTC still fluctuates too much to be an ideal trading method. Stablecoins, as a solution, were introduced into DeFi.
As we mentioned in the previous article, the four generations of stablecoins so far are a huge innovation in the history of human currency. It is a practice of Hayek’s monetary theory and is more in line with Satoshi Nakamoto’s vision for Bitcoin.
Among algorithmic stablecoins, can SATO, as the first Layer 2 version of a single-currency model algorithmic stable currency, become a better version of AMPL?
Distribution
We know that AMPL is issued through IEO. It is true that investors will feel more confident in the legitimacy of the project because the tokens are listed on a trusted crypto exchange; and in most cases, the platform will provide a relatively smooth user experience.
However, crypto project team will have to pay a listing fee, and if they are startups, they may also have to provide a certain amount of tokens to the exchange in the form of commissions. These cost considerations will eventually affect future investors more or less.
When AMPL was launched, there was no uniswap liquid pool mining concept, so AMPL started liquid mining half a year after it went online. Obviously, in this way, the balance of interest will naturally be tilted towards early investors, which is actually unfair to later entrants.
SATO is the first stablecoin launched using AMPL algorithm simultaneously with liquidity pool mining. By directly launching liquidity mining at startup, users can make profit at an early stage, making the game process more fair and just. In addition, SATO is also the only project in the current algorithmic stable currency that has no private equity reservation. The completely zero private equity model allows every investor to participate in it fairly.
Cross-chain usage scenario
With the congestion on the Ethereum main chain, the GAS fee has been high for a long time. It is often the case that profits cannot even cover the transaction costs. Most of the algorithmic stable currency projects are concentrated on the Ethereum main chain. AMPL, as an example. is currently unable to function cross-chain, the usage scenario is limited.
SATO adopts an off-chain solution, allowing users to experience the fastest Swap algorithm platform without GAS fees, minimizing risks and transaction costs, and facilitating more users to participate in the wave of algorithmic stablecoins. At present, SATO will be gradually migrated from a centralized off-chain solution to Layer 2 (Now online) State Channel transactions. This makes SATO an algorithmic stablecoin that can function cross-chain, which is more convenient for investors and reduces the participation cost of new investors.
We know that the core value of BTC is consensus, which is a consensus on scarcity; for a stablecoin like AMPL, its core value is also consensus, but a consensus on usage scenarios. The more usage scenarios there are, the more people will agree on its worth. So this is also why AMPL later launched the liquidity mining pool and has been preparing for cross-chain transactions.
SATO, which already supports cross-chain functions, can be used as a margin in centralized derivative products while preparing for the lending function, it can also be an exchange loyalty points for SATO on e-commerce websites.
Conclusion
According to recent data, the issuance of USD stablecoins on Ethereum has reached 39.5 billion dollars, of which USDT’s issuance is 21.4 billion, USDC is 9.6 billion, and DAI is 2.8 billion. The above figures have already gone higher up by the time this article is being written. It can be seen that stablecoins have become the fastest growing field in the crypto world, and algorithmic stablecoins, as a newly designed stablecoin, will also usher in a new stage of development.
SATO, as a new four-generation stablecoin that has just launched, has a market value of only a few million at this moment. The SATO team has not yet issued governance tokens. A bright future for SATO is very worth looking forward to.
For more info,
SATO official website: https://sato.trade
Medium: https://medium.com/sato-trade
Discord: https://bit.ly/3cnsdgw
Telegram channel: https://t.me/sato_announcement
Twitter: https://twitter.com/SatoToken
