Amp collateral token offers instant, verifiable collateralization for any value transfer. Projects like Flexa use Amp to secure transactions and build networks that accrue value both securely and transparently.
Token Economics
Amp facilitates instant, verifiable assurances for any pending or future value transfer so that any actions dependent on the transfer can proceed without delay. By using Amp as collateral, individuals and entities benefit from collateral security and efficiency, which is transparently attestable on an immutable ledger.
Amp is also asset-agnostic. Amp’s feature set is compatible with any form of value transfer and can therefore be used to facilitate instant, irreversible transactions for any kind of asset.
To organize the process of staking collateral on the chain, Amp employs the concept of collateral partitions. For each entity, process, application, or transaction being collateralized, Amp designates a partition that can be accessed or managed by any number of operator addresses, enabling fine-grained control and extensibility over a virtually unlimited set of use cases.
History
Amp is a digital collateral token designed to facilitate fast and efficient value transfer, especially in cases that prioritize security and irreversibility. As collateral, Amp insures the value of any transfer while it remains unconfirmed—a process that can take anywhere from seconds to hours to days. Amp tokens used as collateral are generally released when consensus for a particular transfer is achieved, making them available to collateralize another transfer. If consensus is not reached for the transfer, the Amp collateral can instead be liquidated to cover losses. Amp facilitates instant, verifiable assurances for any pending or future value transfer so that any actions dependent on the transfer can proceed without delay. By using Amp as collateral, individuals and entities benefit from collateral security and efficiency, which is transparently attestable on an immutable ledger.
Flexa, a payments network, is the first use case of Amp’s features as a collateral token. Users stake Amp in exchange for rewards funded by the merchant fees. The Flexa Capacity contract is a collateral manager that uses Amp to collateralize the payments of 40,000+ merchant locations across the US and Canada.
Amp facilitates instant, verifiable assurances for any pending or future value transfer so that any actions dependent on the transfer can proceed without delay. By using Amp as collateral, individuals and entities benefit from collateral security and efficiency, which is transparently attestable on an immutable ledger.
Amp is also asset-agnostic. Amp’s feature set is compatible with any form of value transfer and can therefore be used to facilitate instant, irreversible transactions for any kind of asset.
To organize the process of staking collateral on-chain, Amp employs the concept of collateral partitions. For each entity, process, application, or transaction being collateralized, Amp designates a partition that can be accessed or managed by any number of operator addresses, enabling fine-grained control and extensibility over a virtually unlimited set of use cases.
Technology
At the core of the Amp collateral model is the concept of the collateral partition. Collateral partitions represent subsets of Amp tokens that provide collateral for particular purposes and are distinguished on the Ethereum blockchain with unique partition addresses. Each collateral partition can be endowed with its own set of rules regarding transfer hooks and privileges and can also implement a predefined partition strategy to enable unique capabilities (e.g., collateral models in which tokens are staked without ever leaving their original address).
Amp uses on-chain collateral managers to lock, release, and reward collateral, which are smart contracts that manage Amp on behalf of a specific collateralization application. Collateral managers interact closely with collateral partitions to allow, deny, and redirect Amp token transfers as needed and support the collateralization of value transfer activities. Amp has been designed to support any number of collateral manager contract implementations. Anyone can build and deploy their collateral manager smart contract to integrate Amp with their applications and use cases.
The first collateral manager built on Amp is the Flexa collateral manager, which manages the Amp tokens staked to the Flexa network to secure digital asset payments. To incentivize staking Amp, the Flexa collateral manager uses each collateral partition as a “pool,” Anyone can contribute Amp tokens. The Flexa collateral manager deposits a network reward as a percentage of each successful transfer’s value. Amp’s role within the Flexa network accrues the entire network’s spending capacity value. It provides for a system of network rewards that are both highly elastic and exponential.
https://messari.io/asset/amp/profile/token-usage
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