Why borrow against AMPL/SPOT?

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While flatcoins offer significant benefits, they can complicate transactions in a predominantly dollar-based economy. AmpUSD gives users the ability to preserve purchasing power via SPOT, while transacting in a dollar-denominated currency.

SPOT provides distinct advantages when used with AmpUSD. The comparison below shows ETH’s price versus SPOT’s fair market value (FMV) over a six-month period (April - Sept 2024). Users borrowing against ETH would need to frequently manage their position to avoid liquidation. By contrast, users borrowing against SPOT can maintain a more stable position without constant oversight, reinforcing the “set it and forget it” principle.

AMPL is proven to be one of the most in-demand assets to borrow against via AAVE from the previous market cycle. With AmpUSD, AMPL holders now once again have a borrowing market for their AMPL, but this time, they can set their own interest rates and much more.