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🧪 Elixir AMO

The Elixir AMO is a liquidity management tool designed to take advantage of the funds built up by the Transmuter. Excess underlying assets in the Transmuter are sent to third-party liquidity pools via the Elixir AMO to rebalance the alAsset price and generate yield.

The Elixir AMO removes assets from the liquidity pool when they fall below a target price, stabilizing the alAssets. The Elixir AMO enhances the sustainability of the Alchemix protocol by generating additional revenue streams and providing an additional lever for managing the system.

Key Features

Automated Market Operator

The Elixir AMO automates liquidity management by deploying excess funds from the Transmuter into yield strategies, effectively rebalancing liquidity pools.

Price Stabilization

The Elixir AMO can withdraw alAssets to stabilize prices when they fall below the target price, helping to mitigate volatility and increase stability.

Revenue Generation

Deposits into liquidity pools to generate additional revenue for the protocol.

Flexible Withdrawal Mechanism

The Elixir AMO offers the flexibility to withdraw alAssets and remove them from circulation when necessary, providing faster-acting influence over the alAsset supply than the Transmuter alone can offer.

Sustainability

By enhancing alAsset management and generating additional revenue streams, the Elixir AMO contributes to the long-term sustainability of the Alchemix ecosystem.

How it works

  1. Transmuter Accumulation: Excess funds accumulate in the Transmuter.
  2. Transfer to Elixir AMO: When significant, these funds are deployed to the Elixir AMO.
  3. Elixir AMO Deposits: The Elixir AMO deposits the funds into corresponding liquidity pools, rebalancing the pools and increasing the alAsset prices.
  4. Yield Generation: Yield generated from these deposits (such as CRV, CVX, or similar) creates additional revenue for the protocol.
  5. Removing Assets: The AMO can also remove alAssets from circulation as a faster-acting method of influencing alAsset supply and price.

{% hint style="info" %} For detailed information on how it works, see The AMO: The Elixir. {% endhint %}