# 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.

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The AMO will work based on several scenarios.&#x20;

In Curve AMO, when the proportion of LUAUSD becomes

1. If it is less than a certain proportion, the AMO will mint a certain amount of LUAUSD to balance the pool's ratio.
2. If it is greater than a certain proportion, the AMO will redeem some LUAUSD.&#x20;

At the same time, all arbitrageurs can simultaneously carry out balanced arbitrage activities.