Why SPOT’s 22% Enrichment Rate Matters (and What it Means for Holders) ↓

If you’ve been watching https://t.co/9kkPWjNkuj lately, you might have noticed that the enrichment rate has quietly surged to 22%.

What exactly does this mean?

A dynamic basket of senior AMPL tranches backs $SPOT. Every week, this basket is rotated, with mature tranches being rotated out for fresh ones.

The rotation vault itself is based on market dynamics, essentially responding to demand for high volatility $AMPL (stAMPL).

When demand is high for volatility, more AMPL flows into $stAMPL than required, creating a surplus.

SPOT then captures this surplus, converting it into “enrichment” as a way to incentivize minting or holding more SPOT tokens to bring stAMPL-SPOT demand closer to equilibrium.

The current enrichment rate of 22% is particularly noteworthy because it signals substantial excess demand for leveraged exposure to AMPL (stAMPL).

Here’s why this is bullish:

As collateral in the rotation vault grows, each rotation increases the quantity of senior collateral per SPOT token, raising the mint floor and leading collected fees to flow to SPOT as a bonus yield.

Higher demand for stAMPL ultimately means that there is excess demand for AMPL and a high expectation of an expansionary supply cycle.

A high enrichment rate significantly increases the yield and value offering of SPOT, helping to attract additional stability seekers to the ecosystem.