AMO Protocol
Introducing "Algorithmic Market Operator" (AMO), a protocol performs open market operations algorithmically, however, it does not have the capacity to create LUAUSD from nothing, which would disrupt its stable value.
The AMO will work based on several scenarios.
In Curve AMO, when the proportion of LUAUSD becomes
If it is less than a certain proportion, the AMO will mint a certain amount of LUAUSD to balance the pool's ratio.
If it is greater than a certain proportion, the AMO will redeem some LUAUSD.
At the same time, all arbitrageurs can simultaneously carry out balanced arbitrage activities.
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