Ampleforth, a digital asset protocol, has launched an incentive program dubbed ‘Geyser' that will see users earn up to 130% APY for staking on Uniswap.
This initiative will leverage Uniswap's 2.0 ‘oracle pricing' and ‘direct ERC-20 token swap' features to boost liquidity through AMPL token distribution. Notably, the process will be non-custodial and on-chain as per Ampleforth's announcement on June 23.
Ampleforth's DeFi Protocol
As the demand for liquidity in crypto increases, DeFi initiatives such as Ampleforth have stepped up to fill this niche. The project runs a native digital token ‘AMPL,' which adjusts itself dynamically based on market demand and supply.
Its underlying design also allows for individual wallet balances to be varied based on the AMPL total supply. In doing so, Ampleforth's protocol eliminates some risks associated with price volatility and deflation.
This project's income-generating model is based on liquidity provision by users who stake their coins. It is quite noteworthy that staking on Ethereum has been on the rise despite sentiments that market participants could be creating a debt crisis. Currently, Ampleforth's Geyser Incentive program has already attracted $327,000 in locked value.
Staking on Uniswap with Geyser
To achieve liquidity creation, Ampleforth has partnered with Uniswap and debuts' Geyser' on the 2.0 protocol. Uniswap coordinates token deposits from users looking to provide liquidity by issuing them ‘liquidity tokens' in exchange.
Also, the platform allows users to retain control of their crypto assets, given a non-custodial approach. Brandon Iles, the CTO of Ampleforth, emphasized that Uniswap has since proven its capability in the crypto liquidity creation space:
“We target Uniswap 2.0 specifically because that platform has the toolset to fully support our unique elastic supply mechanism in its entire toolchain end-to-end.”
With DeFi markets on the rise, Ampleforth's Geyser initiative couldn't have launched at a better time. This market is currently past the $1.5 billion mark, according to DeFi Pulse, and might surge higher given the ongoing hype. However, only time will tell whether Ampleforth's aggressive APY can hold water.