SPOT Flatcoin

SPOT is a low-volatility AMPL-based derivative that functions as a decentralized flatcoin.

Flatcoins are stable assets that track the consumer price index (CPI) rather than another asset or commodity, like most stablecoins. This makes them inflation-resistant assets.

SPOT is unique because it utilizes tranching for collateralization (senior tranches) instead of liquidation mechanics to maintain low volatility and a stable value over time. If you are unfamiliar with this concept, refer to Tranching.

SPOT's price history (red) is shown below versus AMPL (blue):

SPOT maintains high price stability despite AMPL's own volatility thanks to tranching.

Overall, SPOT has three distinct utilities:

1. Acts as an inflation hedge

2. Can be used as a peer-to-peer (P2P) digital cash

3. Is suitable as a decentralized alternative for collateral or DAO treasury reserves

Unlike stablecoins and even other flatcoins, SPOT features a free-floating price and proportional redemption of its underlying collateral. To learn more about how SPOT maintains a stable value without a price peg, see Rotation Vault.

As a derivative of AMPL, SPOT also features infinitely scalability as there is no supply cap on AMPL. This means that, should demand allow, AMPL's supply can scale infinitely to match the underlying demand for SPOT.

This is the key, fundamental value proposition of SPOT versus other stable-value alternatives like DAI or USDC.