a 9 year old?
AMO is an autonomous contracts that enacts arbitrary monetary policy so long as it does not change the FRAX price off its peg. It means that AMO controllers can perform open market operations algorithmically, but they cannot arbitrarily mint FRAX out of thin air and break the peg. This keeps FRAX’s base layer stability mechanism pure and untouched.
I believe it’s modeled after US Federal Reserves’s Open market operations (OMO). Worth a google.
computer programs that make money for frax
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