> For the complete documentation index, see [llms.txt](https://lumi-finance.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://lumi-finance.gitbook.io/docs/legacy/lua-minting-secondary-market/amo-protocol.md).

# 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.

<figure><img src="/files/j7lbJmuyrJ99nEK3xfQb" alt="" width="375"><figcaption></figcaption></figure>

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.