The reason for the amendment is, during our deployment of milestone 1 and 2 to Mandala, we found out that support of yield asset and amplification update are extremely important for Polkadot ecosystem assets.

We spent more than three weeks implementing, testing and deploying our solutions in Mandala. It works well and we are planning to deploy to Karura early next week. We believe it’s sufficient as milestone 3 deliverable.

As for stable savings, we are going to apply it as a separate grant since its work scope is bigger than a single milestone, especially with XCM integrated.

@shengda sounds good, thank you for the update. Could you provide a few more details on those two items? What do you mean exactly by yield assets, and what are amplification parameters? Ideally, please update the summary on lines 51-53.

I have removed Stable Saving from the project details, and provided more details on the milestone 3 deliverables.

@shengda Thanks for the amendment proposal.

Quoting from the application document:

Comprehensive tests that cover yield asset and amplification parameter change

A) I'm still confused about the meaning of amplification parameter. Could you elaborate on that?

Since all assets in the baskets are of the same value peg, their prices should fluctuate about the peg prices with low variation expected so that the overall collateral ratio should be slightly over 100%

B) I was just wondering why you expect it to be >100% and not around 100% since the fluctuations obviously can go both directions. Note that this is not relevant for the acceptance of the amendment since your application was already accepted, I'm just being curious. Apologies in case this was already discussed. :)

@shengda Thanks for the amendment proposal.

Quoting from the application document:

Comprehensive tests that cover yield asset and amplification parameter change

A) I'm still confused about the meaning of amplification parameter. Could you elaborate on that?

Since all assets in the baskets are of the same value peg, their prices should fluctuate about the peg prices with low variation expected so that the overall collateral ratio should be slightly over 100%

B) I was just wondering why you expect it to be >100% and not around 100% since the fluctuations obviously can go both directions. Note that this is not relevant for the acceptance of the amendment since your application was already accepted, I'm just being curious. Apologies in case this was already discussed. :)

1. Amplification parameter is a parameter that controls the "shape" of the AMM curve. The higher the parameter value, the more liquidity there are when underlying asset prices are close. Therefore, when the intrinsic value of underlying assets become closer, we will increase amplification parameter in order to increase liquidity between the underlying assets. Milestone 3 ensures that stable asset can handle this parameter change without affecting the total value of the generated asset;
2. This is determined by the algorithm. When all underlying assets are of the same intrinsic value, the collateral ratio is exactly 100%. When any of them shifts in price, the collateral ratio is over 100%.