Is there anybody that can easily explain this concept within

Question

Is there anybody that can easily explain this concept within

frax of "idle" USDC that gets deployed by the AMOs?

I think I understand part.
FRAX = partial USDC that FRAX Protocol keeps on it's books

When someone puts FRAX in an LP, they are indirectly tying up that USDC backing.

When a person comes over and stakes/locks up their FRAX/ASSETS LP token on the FRAX Platform, this gives the FRAX platform the go ahead to deploy that USDC because they now know it doesn't have to be redeemed for X days.

This USDC earns revenue, which in turn gets distrubuted somehow to FXS token holders in the form of buyback and burns.

Do I have this right?