• 1 AMP offers collateral as a service through a value guarantee, and it helps users collateralize any type of asset.
• 2 The user can deploy AMP for collateral verification via staking and its ERC-compatible token.
• 3 AMP is expecting and experiencing a positive long-term outlook for the value and price of tokens.

AMP is an open-source, decentralized protocol that provides collateral as a service. AMP is described as the new digital collateral token offering instant, verifiable assurances for any kind of value transfer.

Flexa is the parent company of AMP and it was founded in 2018. The founders are Trevor Filter, Zachary Kilgore, and Tyler Spalding. Spalding is the CEO of the AMP project. He has a bachelor’s degree in mechanical engineering and a master’s degree in aerospace, aeronautical, and astronautical engineering from the University of Illinois, Urbana-Champaigh.

He has also attended Harvard Business School and completed his M.B.A. from MIT. Since then, he has been an investor and has launched various blockchain projects.

Apart from this, he has served as a co-founder and CEO of Tastebud Technologies and is the former CTO of Raise.

The AMP project was launched in 2020. It aims to provide a fast, efficient, and secure transaction platform. Simultaneously, it claims to solve a number of network problems, including slow confirmation times, price volatility, and broad adoption.

AMP claims to offer a straightforward but versatile interface for verifiable collateralization through a system of collateral partitions and collateral managers.

AMP is a universal collateral token designed to facilitate fast and efficient transfers for any real-world application. It is an ERC-20 compatible token that implements conditional access rights via smart contracts within a partition scheme.

Working of AMP

AMP operates through collateral managers, which are smart contracts. It can lock, release, and redirect collateral in partitions as needed to support value transfer activities.

It introduces the concept of predefined partitions as needed to support value transfer activities. It can enable special capabilities such as collateral models, which facilitate token staking without leaving their original address.

AMP is built on Ethereum’s blockchain and proof-of-stake (PoS) consensus mechanism. ConsenSys Diligence and Trail of Bits audit AMP smart contracts. It adds an extra layer of functionality to the network.

The Amp ecosystem is entirely open-source and decentralized, which helps to decentralize risk to its users through smart contracts.

AMP as Digital Collateral

When Amp is used as collateral, every asset becomes a fast and secure medium of exchange. To transfer digital assets, there is a natural push and pull medium of exchange. The more confirmations a user receives for cryptocurrency transactions, the more permanent they become.

Waiting for several confirmations is not practical in real world situations, such as payments, when speed is important in trade execution. Thus, there is a trade-off between speed and security. This has made it challenging to use cryptocurrencies in the real-world.

AMP has become a universal clearing layer for transfers and it unlocks assets that would otherwise require waiting for confirmations before being put to use. A new ability to use any asset immediately upon transfer is a feature any asset can benefit from, whether digital or physical, cryptocurrency or Central Bank Digital Currency (CBDC).

Uniqueness of AMP

AMP is a fundamental building block for the future of digital and physical transfers. Its exclusive purpose is to serve as collateral for any asset transfer. Two innovations make AMP unique: collateral managers and token prices.

Collateral managers are sort of like escrow accounts, built with different rules and specifications that can be customized to fit different use cases. Anyone can create a collateral manager with AMP as collateral to use in applications whenever efficient value transfers or escrow services may be beneficial.

Token partitions are similar to traditional hard disk partitions, where regions of a disk can be managed separately. Partitions within the AMP token contract allow different collateral managers to enforce rules in separate, distinct spaces associated with the same digital address. This enables users to stake tokens without literally transferring them to a smart contract.

Use Cases of AMP

AMP supports a wide variety of use cases for collateralization. It can be used to collateralize any account, application, or transaction, providing a versatile solution for value transfer activities.

For example, AMP can be used to collateralize payment networks, enabling instant, fraud-free payments to merchants across digital payment networks.

Individuals can also use it to collateralize their own asset transfers, providing immediate margin relief during transactions. Moreover, AMP can be integrated into new DeFi platforms and protocols, diversifying its current and future uses and effectively increasing its collateral equity.

AMP Token

Tokenomics

The AMP token is initially distributed among the Merchant Development Fund, Developer Grants, Team and Employee, Token Sales, and Network Development Fund.

Supply Schedule of AMP

The initial token launch date for AMP was September 8, 2020. The maximum supply of this token was capped at 100,000,000.

Funding Rounds of AMP

On June 1, 2018, AMP completed its first private sale, regarded as Private Sale 1, and raised $14.1 billion with an average price of $0.001. On the same date, AMP completed its Private Sale 2 and raised $5.9 billion with an average price of $0.001.

Price Statistics

The current market cap of the AMP token is $210,859,339, and its fully diluted valuation is $373,595,260. It has a total value locked (TVL) of $77,296,658 and it has a circulating supply of 56,127,938,240 tokens, and its total and maximum supply is 99,446,065,992.

Conclusion

Flexa is a popular payments network and it is already using AMP for loan collateralization via a capacity contract. Pantera Capital, based in California, is one of the project’s lead investors.

Users are allowed to stake AMP, the native token for lending assurance to the concerned projects. Once it grows, the AMP token can act as collateral for DeFi projects, payment networks, and individual requirements.

FAQs

Which exchange can be used for buying AMP?

The AMP tokens are traded on centralized crypto exchanges. The most popular exchange to buy is Bitunix. Other options include Binance and BingX.

Which is the most active trading pair?

The most active trading pair for AMP is AMP/USDT.

What is the current market sentiment for AMP?

The current market sentiment for AMP is bullish, with 81% of users supporting a positive viewpoint on the token.