Tokens & Assets
Rebase Token
Elastic Supply Token
Token with elastic supply that adjusts to maintain price stability
Definition
Rebase tokens automatically adjust their total supply to maintain a target price. The number of tokens you hold changes, but your proportional share of the total supply remains constant.
Example
AMPL (Ampleforth) increases or decreases all holders' token balances daily based on price deviation from $1.
What to check
Treat it as a token-design concept: inspect supply mechanics, holder incentives, redemption paths, and governance controls. The main checks are: Supply volatility; Complexity; Unpredictable returns.
Risks to Consider
- Supply volatility
- Complexity
- Unpredictable returns
Common Questions
What does Rebase Token mean in DeFi?
Rebase Token means Token with elastic supply that adjusts to maintain price stability. The useful question is not only the definition, but how the mechanism changes risk, return, liquidity, or governance for the user.
How is Rebase Token used in practice?
A practical example: AMPL (Ampleforth) increases or decreases all holders' token balances daily based on price deviation from $1.
What should I check before relying on Rebase Token?
Check supply volatility, complexity, unpredictable returns. Also verify liquidity, oracle assumptions, admin controls, and whether the protocol has been tested during stressed markets.
