$AMPL is a Revenue-Generating Powerhouse
$AMPL generates more revenue for lenders & borrowers as well as for the lending platforms themselves (Aave) than any other asset in crypto. It truly is a marvel in DeFi and people don’t even realize the gravity of it all… yet.
That’s why in this piece, I shine a light on what’s happening here. I dive deep into the data and divulge just how big a deal $AMPL on Aave is — for lenders, borrowers, and the protocol itself.
$AMPL on AAVE — Revenue for Lenders & Borrowers
$AMPL has incredible borrowing demand and this is why it can generate so much revenue for both lenders and borrowers. The utilization rate for $AMPL on Aave has been at 100% now for +2 weeks and will likely stay this way for as long as $AMPL is positively rebasing.
When $AMPL’s utilization is at 100%, lenders earn +87,000% APY. No other asset comes even close to this APY percentage making $AMPL the de facto leader in lending APYs. Also, lenders are earning additional $AMPL from the geyser multiplier on Aave.
As for Borrowers… it gets even better!
When $AMPL is positively rebasing, borrowers are earning APY’s in the millions, billions, and even trillions of percent because they are borrowing exposure to the rebase.
Take Pepe Soros on Twitter, for example, he is a true $AMPL degen who understands how to play the rebase and take advantage of $AMPL on Aave.
He did a case study where he borrowed 150k $AMPL which has thus far earned him $160k profit in just 11 days:
There has never been an asset that borrows and lends like $AMPL.
$AMPL on AAVE — Revenue for the Protocol ($AAVE Holders)
In my previous article titled “$AMPL on Aave Fees & Revenue — The Story So Far”, I outlaid that in the past 90 days, $AMPL brought in $1.3 million in fee revenue for lenders and the Aave protocol, making it the 4th largest cumulator of fees on Aave.
And now, just 4 days later, that number is up to $2.6 million in fee revenue for lenders and Aave! Crazy right? The revenue generated from $AMPL doubled (2x) in just 4 days.
Also, just recently on Nov 1, 2021, $AMPL flipped both $DAI and $USDT in daily generated revenue. In fact, it almost did more combined!
Aave Revenue Stats on November 1, 2021:
- There was $2.72B worth of $USDC on Aave which generated $658,000 in revenue — 42.2% of total rev.
- There was $1.92B worth of $DAI on Aave which generated $236,000 in revenue — 15.1% of total rev.
- There was $936M worth of $USDT on Aave which generated $174,000 in revenue — 11.5% of total rev.
- There was $15M worth of $AMPL on Aave which generated $376,000 in revenue — 24.1% of total rev.
To put this in perspective, $AMPL is approx 0.1% of the Aave TVL yet it generated almost 25% of the daily revenue.
DO YOU UNDERSTAND THE GRAVITY OF THIS!??
The amount of revenue that $AMPL is able to generate with the little amount of liquidity it has is absolutely staggering. What do you think is going to happen when $AMPL doubles or triples that liquidity?
$AMPL = Brrrrrr for Aave squared
Because when borrowing demand is strong (utilization rate 100%), borrowers pay a rate of 186,000% APY to lenders of $AMPL. But the lenders only earn up to 87,000% APY of these fees and the Aave protocol captures the difference based on the assets reserve factor.
This is how the Aave protocol is able to generate so much revenue from $AMPL.
A Glimpse into Future Revenue Generated by $AMPL on AAVE
Since $AMPL is an asset with incredible borrowing demand on Aave that generates insanely high APYs for both lenders and borrowers + brings in monumental revenue for Aave, you can bet the $AMPL lending pool is going to grow massively.
How big you ask?
My sights are on $1 trillion. And I’m not the only one who thinks this. Devoted AMPLers who understand $AMPL in and out feel the same:
How will the pool grow to this size?
Again, Token State provides a pretty good explanation:
Taking everything I laid out here today into account, I think it would be fair to say that November, and the months that follow, could be very good for the $AMPL on Aave pool.
Watch it closely. And marvel at its beauty ;)
Follow me here on Medium and on Twitter for more updates like these. I’ll be tracking $AMPL fee revenue on Aave closely to see how it progresses.
