AMPLcan be certain that
AMPLprice reverts to its target over time, they experience unbounded stock volatility similar to that of floating-price tokens.
1000 AMPLfrom Bob to be paid back at a later date. Bob does not have to worry about the supply changes associated with the
1000 AMPLAlice borrowed because he is no longer in possession of the
1000 AMPLhe lent. Bob is simply owed
1000 AMPLat some time in the future.
2000 AMPLinto an empty pool on AAVE and 0% of the pool is utilized. In this case Alice is still exposed to supply volatility in addition to price volatility because all of the
AMPLin the pool effectively belongs to her.
2000 AMPLinto a pool on AAVE and Bob immediately borrows
2000 AMPL. That is to say, this time the pool is 100% utilized. In this case Alice is not exposed to supply changes at all because the AMPL is in Bob's possession. She is simply owed
2000 AMPL+ interest at some time in the future.
2000 AMPLinto a pool of AAVE and Charlie immediately borrows
1000 AMPL. In this case the pool is 50% utilized and Alice is exposed to 50% of supply changes because half of the pool "belongs" to her and the other half is owed to her with interest at a later time in the future.