> 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/overview-of-v2.md).

# Overview of V2

Lumi Finance emerges as a pivotal financial derivative within the Lumi ecosystem, aimed at aggregating sustainable wealth accumulation.&#x20;

<figure><img src="https://1073425533-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FQ0i49wQWLITnZS6WsqL3%2Fuploads%2F2pWWMZOKsA0seeg19DUz%2Fimage.png?alt=media&amp;token=afe7a485-d016-42f9-b20b-27d743d83a5e" alt=""><figcaption></figcaption></figure>

LUA stands as the core strategic token, minting LUAUSD through its floor price collateral mechanism, LUAUSD is the stable coin acting as the ecosystem's currency.

* LUA features a dual pricing mechanism, with a issuing price(we called it market price in V1) and a floor price, where the latter only ascends based on algorithms and calculus.
* The LUA dual market system, alongside price mitigation and TWAMM balance mechanisms, harmonizes stability with volatility, offering the market a broader spectrum of strategic options.&#x20;
* Staking LUA mints LUAUSD, concurrently yielding profits in LUAB and LUAG.&#x20;
* LUAUSD liquidity mining.
* Protocol buy-back and burn LUA mechanic, similar to EIP-1559.
* AMO Protocol for algorithmically keeping LUAUSD return to the peg.
* Stablecoin(LUAUSD) has continuous high-quality use cases in the Lumi ecosystem, such as [Lumiterra](https://twitter.com/LumiterraGame).


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