Spot (SPOT) is a decentralized store of value that seeks to bridge the gap between speculative cryptocurrencies and dollar substitutes. It is built on the Ampleforth and Buttonwood protocols and is governed by FORTH. Spot strives to create a more resilient financial ecosystem that does not depend on centralized custodians or lenders of last resort. Unlike other stable assets, Spot can wind down to zero users and reboot, as it is a proportional claim on a set of assets, meaning it can never be undercollateralized. Spot does not rely on explicit feedback loops or market reactions, nor does it depend on bailouts or lenders of last resort. It can grow and shrink with market demand without burdening itself with future obligations.

Spot operates using a mechanism known as tranching, which provides stability that scales. It is a CPI-tracking stable asset that uses zero-liquidation tranching to maintain stability. Spot can scale up and down with demand and is designed to bend rather than break in extreme market conditions. It can be held directly as a refuge from inflation, used as a peer-to-peer digital cash, or held as alternative collateral within reserves. Spot does not rely on any centralized collateral, meaning assets cannot be forcibly seized or frozen by system administrators.

Spot can be held directly as a refuge from inflation, serving as a stable store of value in a volatile market. It can also be used as a peer-to-peer digital cash, facilitating transactions without the need for a third party. Additionally, Spot can be held as alternative collateral within reserves, providing a level of security and stability. Spot holders may pair it with other assets to facilitate transactions on certain platforms.

Spot is a project of the Ampleforth foundation and is the result of a five-year-long journey. The project was initiated with the simple goal of producing a decentralized asset that serves a real purpose in the long run and works in the long run. The team behind Spot faced numerous challenges in navigating this intersection, but they were determined to create a system that could survive a secular decrease in demand. The introduction of tranching, a resegmentation of risk into one or more derivative assets with different volatility profiles, was a development in the project's journey. The Spot protocol was sketched out in a previous phase of the project's development, using low-volatility senior AMPL tranches as collateral for stability.