This Whitepaper gives a brief overview of the technology behind Amplify Protocol and provides key information for understanding work principles and the benefits of its use. Borrowers and Lenders - the two main users of this decentralised finance protocol - are presented with all needed technical information: the most important functions and the methodologies for achieving desired liquidity. A unique contribution of the Amplify Protocol development team is the proposal of a novel Interest Rate Model, which is presented in detail, providing foundational mathematical apparatus and control logic of the model. Finally, $AMPT token topics are covered with special attention to the Governance of the protocol.
Amplify Protocol represents a peer-to-peer system designed to address the supply chain finance challenge. It aims to improve the traditional credit granting system by making it accessible and easy to use. Amplify Protocol is a decentralized financing application that enables borrowing against collateralized assets. It is designed to enable algorithmic lending from Borrowing Pools to serve supply chain financing through tokenized accounts receivable (AR). These pools allow users to borrow and lend crypto-assets featuring mechanisms to equilibrate the loan market. The protocol is implemented as a set of persistent, non-upgradable smart contracts. These contracts are designed to promote inclusivity, self-custody, and security. The priority is to provide technological infrastructure that enables participants to transact without any intermediaries who may selectively restrict access.
The benefits of using the proposed protocol in real-time business environments are significant and promise broad usage capabilities. For example, let’s imagine a trucking company that handles trucking for large corporations and, in return, gets payments 60 days after invoicing. Keeping in mind that invoicing can only be performed after the job completion, invoicing may be postponed by an extra 10-14 days. On the other hand, drivers should be paid regularly and independently from paperwork procedures. This requirement creates pressure on the cash flow for the trucking company to handle operating expenses and salaries optimally. Amplify Protocol can assist here by providing money in advance to the trucking company and enable it to fulfill daily operations and scale-up in accordance with its needs.
This Whitepaper aims to provide a high-level presentation of the mechanisms behind Amplify Protocol, its decentralized governance, and economy centered around the $AMPT governance token.