Why Aren't Amples a Stablecoin?
It's a misunderstanding to think that because Amples have an equilibrium price target, they can be thought of as interchangeable with modern day stablecoins. This is not the case. Below we identify the most common functional associations with stablecoins today, and explain why they don't apply to Amples.
1. Stablecoins remove volatility.
Ampleforth does not remove volatility from the system. In fact, by design it allows volatility. Amples are not a risk free asset, users can gain and lose value in the network.
2. Stablecoins are used as base trading-pair tokens on cryptocurrency exchanges.
Since Amples will likely be volatile, exchanges are better served using dollar-backed coins (or actual dollars) for the base trading pair use case.
3. Stablecoins are ideally suited for payments.
Using Amples for payments will be more like using Bitcoin or ZCash for payments, as we expect both price and supply to be volatile at launch.
Broadly, people think of stablecoins as a stand-in for the dollar on the blockchain, and while we believe this can one day be true of Amples in the distant future—just as some believe it will be true of Bitcoin—it is not the case today.