# 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.


---

# 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://lumi-finance.gitbook.io/docs/legacy/lua-minting-secondary-market/amo-protocol.md?ask=<question>
```

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.