Algorithmic Market Operations
Overview: JewelSwap introduces an innovative approach to decentralized finance with its Algorithmic Market Operations (AMO) framework. This framework is designed to maximize capital efficiency through autonomous, programmable financial strategies, often referred to as 'central banking legos'.
Key Features:
AMO Controllers:
AMO Controllers are sophisticated algorithms that perform open market operations. They are designed to dynamically adjust market parameters based on real-time data, ensuring optimal capital utilization.
These controllers increase market efficiency and stability, ensuring that users get the best possible returns on their investments.
Utilization of Idle Lending Assets:
Concept: In the NFT Lending Liquidity Protocol, idle assets are not merely stored but actively invested.
Implementation: This idle capital is channeled into JewelSwap's EGLD Liquid Staking mechanism, which allows for the generation of reliable yields.
A dynamic percentage of lent EGLD in the lending pool is allocated to JewelSwap's SJWLEGLD Liquid Staking.
This allocation aims to generate additional and stable revenue, which benefits all lenders in the lending pool.
Reward Distribution:
70% of the generated rewards are allocated to the lenders as an incentive for their participation, while 30% are reinvested into the protocol.
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