AMPLEFORTH / The Good The Bad And The Ugly

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The Good

Ampleforth Geysers exploded on to the DeFi scene with fantastic returns when providing liquidity to the ETH/AMPL Uniswap pool, which was also giving great returns.

Everything was going great, i even wrote a blog about (The Power of Uniswap and Ample ).

Right after writing this blog, i realised WTF am i doing? and re-adjusted my position.

The Bad

All of a sudden ample started crashing and continued to crash till it reached $0.60.The price remained below the target price,negative rebase for 2 or 3 days then it broke above $1.00 and has been doing its yoyo dance above and below the target price and remains in negative rebase.

Crypto online sites with their articles suggesting that Amlpe crashed because thats what ample was designed to do,with Ampleforth liking their twitter posts( r u having a giraffe?).Ampleforth's mechanics is designed to contract or expand the supply at rebase.What happened to Ample's price was a consequence of your Ecosystem Fund etc filtering aprox 20 million Ample through 2 wallets etc before unloading on Bitfinex, KUCOIN and Uniswap. I wrote this blog The reason ample crashed  By their actions it seems to me that they knew what they were doing was unethical, and why didn't they stop selling instead of continuing to sell when they realised the price was crashing.Also the way the price recovered to above $1 after 2 or 3 days negative rebase after the crash,i was watching tradeview(Kucoin) and the buying pressure was continuous all day, where did all this demand come from all of a sudden?

I am going to give you a bit of ugly in the Bad because the ugly gets very ugly.The  20 million ample  was profit generated from 28 days of positive rebase, can u Adam and Eve it.

The Ugly

This is how i see how things went down.

The ampleforth geyser's weren't designed to incentivise liquidity providers to the ETH/AMPL Uniswap pool, but were designed to keep the price of AMPL above the target price,Why? for the King of profit. Also the timing of the Geysers, coincidental timing? i think not.

Lets rewind to my WTF moment earlier, i realised i needed to withdraw from the geysers and uniswap pool and just hodl Ample.

Uniswap is the smoke the 2 geysers are the mirrors, they used smoke and mirrors to dazzle and blind the community from the real prize that was right infront of the them all along, while the community fed on the pocket change that is the uniswap pool and the geysers (smoke and mirrors), the Ecosystem Fund etc fed on the king of profit, COMPOUND DAILY INTEREST. Hold on wouldn't the community get compound daily interest on their AMPL in the uniswap pool? No, uniswap mechanics wont alllow it.Let me give you an example if you supply 100 AMPL and the equivalent amount in ethereum and the first rebase is 10% positive,after the rebase you will have 110 AMPL, but because of the balance act uniswap does to keep an equllibrium between the pair you could end up with 105 AMPL.If the price of AMPL goes up or ETH goes down,you could end up with 95 AMPL( the balance is the same, you just have less AMPL and more ETH). so after the second rebase which is also 10% positive you have 104.5 AMPL, less than what you had after the first rebase.

If you dont know what COMPOUND DAILY INTEREST means, let me show you. The Ecosystem Fund received 23.2% allocation of 50million Ample, which is 11600000 Ample.At the end of 28 days positive rebase with an average 10% daily compound over 28 days, 100% reinvest, gives you a balance of 167283525.93 Ample, a net profit of 155683525.93 Ample. The Ecosystem Fund alone made aprox 155+ million ample profit and this is not accounting for the Team and Advisors 25%, Treasury 20%, Seed Investors 18.5% etc.

Some of these seed investors(Pantera etc) were on twitter saying whats with the reaction,this was expected,this is how Ampleforth was designed( honestly, the balls on these guys would make Buster Gonad jealous), so lets see how big their balls are? 18.5% of 50m allocation is 9250000 x 10% daily compound over 28 days with 100% reinvest gives you a balance of 133394190.92 ample, a net profit of 124144190.92 Ample, a profit of 124+ million Ample, yeah, thats some big balls.

Taking the figures above and accounting for unlocked tokens starting a year ago and days of negative rebase since then,Ecosystem Fund contract  started with 11.6m, now has 52.3 AMPL($35.3m) and transfered out 6.5m when AMPL crashed,Team and Advisors contract started with 12.5m and, now has 125m AMPL($82.3m) and transfered out 7m when AMPL crashed,Investors contract Seed and Serie A started with 10.9m AMPL, now has 46.7m AMPL($31.1m) and transfered out 10.2m when AMPL crashed,Treasury contract started with 10m, now has 143.2m AMPL($95.2m) no transfers.

28 days is applicable to the period between 30/6/2020 to 28/7/2020.

So, the Ecosystem Fund etc unloaded aprox 20m Ample through Bitfinex ,Kucoin and Uniswap, the price of AMPL crashed, most of the community lost their profit,some didnt even get a chance to make a profit and lost their investment and the ampleforth team,seed investors etc became  millionaires. The price now $0.60+ cents.

We know who caused the crash, but in general when you need to find out who caused the situation, you look at who gained? in this case, its quite clear who gained.

Suffice to say, i have liquidated all my AMPL.