# AMPL AAVE FAQ **AMPL Basics: What is a rebase? What is AMPL?** This FAQ will assume you already understand the basics of Ampleforth and Rebasing, if you do not, please see: faq.ampleforth.org * **Does aAMPL rebase?** aAMPL rebase exposure is in proportion to the pool's utilization rate. Eg: If utilization rate is 100%, aAMPL will not rebase If utilization rate is 50%, aAMPL will get 50% of the rebase If utilization is 0%, aAMPL will have full exposure to the rebase * **Does the amount owed by borrowers rebase?** variableDebtAmpl does not rebase. Borrowers must repay the loaned amount, plus interest, their debt obligation does not rebase. * **Why is the utilization rate and APY so high?** The rebase rate during positive rebase can be higher than the maximum interest rate for borrowing AMPL. This creates a situation where traders can profit by borrowing AMPL when its price is above target, collecting the rebase, and pocketing the extra AMPL as profit. This is why utilization rate tends approach 100% as AMPL moves above target price. The maximum interest rate for AMPL lenders is \~87,600% APY, or \~680% APR. * **Why can't I withdraw my aAMP**L? If the utilization rate of the AMPL pool is 100%, then lenders will not be able to withdraw their AMPL, as all tokens are being lent out to borrowers. Once utilization rate falls, lenders will be able to withdraw their AMPL. \ While lenders cannot withdraw AMPL when utilization rate is at 100%, they can sell their aAMPL for AMPL on secondary markets. An aAMPL/AMPL pool exists for this purpose, lenders should be able to access liquidity for their aAMPL using this pool regardless of utilization rate. Note that when utilization rate is 100%, the exchange rate between aAMPL/AMPL tends to be less than 1:1. \ The pool can be found here.
* **What is the Splendid geyser, and how do I subscribe to rewards from AMPL liquidity mining?** The Spendid Geyser provides AMPL rewards to aAMPL holders. For more information about the Splendid Geyser and a guide on how to subscribe to the liquidity mining program see: \ The user interface for the Splendid Geyser can be found here: * **Does interest accrue from both Aave and the Geyser?** Yes, when aAMPL is deposited into the splendid geyser, it collects both the interest from aave, and the ampl rewards from the splendid geyser
* **Why can't I see my AMPL in the Aave UI after depositing into the Splendid Geyser**? The Splendid Geyser wraps your aAMPL in a non-rebasing wrapper and deposits that wrapped token into a non-custodial ERC-721 'Universal Vault'. The Aave UI and frontend cannot detect tokens in this vault. Rest assured that you are still earning interest on your AMPL, even though it does not appear on the Aave frontend. * **Can I use my aAMPL as collatoral?** Not yet. To enable aAMPL as collatoral on Aave an AIP would have to be considered and voted on by Aave Governance. To participate in Aave governance see: governance.aave.com --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://hhvqhpgsfzzolrncbu.gitbook.io/ampl-aave-faq/ampl-aave-faq.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.