Today's decentralized stablecoins rely on liquidation markets to secure stable value. This makes them vulnerable to cascading liquidations and difficult to scale.
The SPOT token is a CPI-tracking stable asset that uses zero-liquidation tranching to provide stability. It is designed to:
SPOT can be held directly as a refuge from inflation, used as a peer-to-peer digital cash, or held as alternative collateral to USDC within reserves.
AMPL is the underlying collateral asset used in the SPOT protocol and staking AMPL is a public good for the SPOT ecosystem. Any holder of AMPL benefits from SPOT's network growth. Stakers can earn additional rewards and help secure SPOT as a store of value by depositing their AMPL in the rotation vault.
SPOT is an inflation-resistant stable asset. Holders of SPOT benefit from durable long-term stability. Staking SPOT in liquidity pools a public good for the SPOT ecosystem. Any SPOT holder can pair it with USDC to generate volume-based fees without impermanent loss by staking on Uniswap.
SPOT does not rely on any centralized collateral. This means assets cannot be forcibly seized or frozen by administrators of the system.
SPOT is a freely redeemable claim on AMPL which targets the CPI-adjusted dollar. This means each SPOT is approximately worth 1 2019 USD and the token can be held as a refuge from long-term inflation.
Liquidation market based systems rely on continuous demand for leverage on collateral, in order to scale. Unlike these systems, demand for SPOT propagates into network growth.
SPOT's collateral is tranched in a manner that progressively degrades into its base-asset (AMPL) under stress rather than triggering bank-runs or cascading liquidations. In times of turmoil this system bends safely (becoming temporarily more volatile) rather than breaking catastrophically.