What is Amp?
Amp is a cryptocurrency token plus a digital asset. Holders can use it to collateralise payments. The most platform using Amp is the flexa network. It makes the payments of flexa secure and instant. Holders can use Amp tokens for digital payments, loans and other financial transactions. It offers quick and verifiable assurances for all types of value transfers. Amp crypto aims to reduce the cost of interchange in payment transactions and the probability of fraud. The Amp token was launched in September 2020. It is built like the ERC20 standard tokens on Ethereum. Amp can be exchanged for fiat currency like dollars or other digital currencies like Bitcoins.
- Amp is a cryptocurrency token plus a digital asset that is used to collateralise payments.
- Amp uses smart contract features customised as collateral.
- Amps are extensible and open-source. It was designed to be as flexible and agile.
Frequently Asked Questions (FAQ)
What problem does Amp crypto solve?
Amp cryptocurrency can act as collateral for payments made using the Flexa Network. If a payment is delayed or skipped, Amp collateral can cover the costs. The vendor still gets paid, and it adds extra security for both buyers and sellers using the crypto. Amp uses smart contract features customised as collateral. Currently, the crypto is partnered with several services, like Flexa, CoinGekco, Gemini, Sushi, and Uniswap.
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What are the features of Amp?
- Collateralisation using Amp is tested, audited, and freely available. It's easy to build apps that lock and unlock Amp on-demand to secure and enable lending.
- Amps are extensible and open-source. It was designed to be as flexible and agile. Amp's open-source license allows custom collateral managers for apps to interface with Amp and a transaction platform.
- Amp supply is fixed. When a new platform adopts Amp, existing users benefit from increased liquidity and decentralisation. It, in turn, reduces volatility and enhances the collateral quality.
- All kinds of transfers, digital or physical, can use Amp for collateralisation to secure transactions.
What makes Amp unique?
- Amp enables instant, verifiable assurances for value transfer. So actions dependent on the transfer can proceed without any delay.
- Amp users benefit from the security and efficiency of collateral as it is transparently attestable on an immutable ledger.
- Amp is asset-agnostic or universally compatible with any form of value transfer—digital or physical. It can therefore be used to facilitate instant, irreversible transactions for all types of assets.
- Amp uses the concept of collateral partitions for staking on the blockchain. Each process or transaction being collateralised designates a partition accessible or manageable by multiple operator addresses. It thus enables fine-grained control and extensibility.
- Amp ensures the value of any transfer as collateral. Often the collateralisation process can take anywhere from seconds to hours to days.
- Amp tokens are generally released when consensus for a particular transfer is achieved, making them available for another transfer. If consensus is not achieved for the transfer, the Amp collateral can instead be liquidated to cover losses.
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How does Amp crypto work?
- The Amp collateral model uses the collateral partition concept. Each partition is a group of Amp tokens based on different collateral purposes. These parts are distinguished on the Ethereum blockchain-based on unique partition addresses.
- Each collateral partition can have its own set of rules regarding transfer pegs and privileges. A predefined strategy can also be implemented for the partition to enable special capabilities.
- To lock, unlock and reward collateral, Amp has on-chain collateral managers. These are smart contracts managing a specific collateral app. Collateral managers interrelate collateral partitions to allow, deny and redirect Amp token transfers.
- Collateral managers support the collateralisation of value transfer activities. Amp's design supports any number of collateral manager contracts. Amp design also supports anyone who builds and deploys their collateral manager smart contract, integrated with Amp.
- Amp's first collateral manager network is Flexa, which manages the Amp tokens staked to the Flexa network.
- The Flexa collateral manager uses every collateral partition as a "pool," anyone can contribute Amp tokens.
What are the benefits of using Amp?
Amp users have the following benefits-
- They enjoy instant collateralisation and transfers. The Amp network works on a real-time basis and is scalable to meet the needs of the growing digital economy.
- It is secure; the Amp team has ensured that the network is protected. The platform's smart contracts are audited, and the protocol is open source.
- Amp enjoys interoperability within the market. It already has access to the entire Etherium blockchain ecosystem, the world's largest development app and token launch platform.
- It is scalable and expandable; the network features an open-source license. It allows creating and deploying custom collateral managers for DApps.
- Amp operates on an agnostic protocol where developers worldwide can easily leverage the protocol to improve their systems.
- It can support multiple blockchains and physical assets with ease.
How decentralised is Amp?
Amp was developed for decentralised collateralisation of cryptocurrency transactions. The token was presented in September 2020 by the Flexa platform in collaboration with ConsenSys. It acts as collateral crypto for payments on the Flexa Network.
To minimise the influence of one individual or any single entity over the Amp token and network, Amp offers a fixed, non-inflationary token supply. Even upgradeability is limited. Even though Amp does not require any permissions to extend through collateral manager contracts on the Amp platform, the value of the Amp token is only dependent on the value of projects that adopt it.
It explicitly disables any privileges for executing Etherium calls. Standard Etherium calls include mint, burn, transfer of tokens. Thus, the only functionality available to the owners of Amp is the ability to append new partition validator strategies explained before.