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Atoll Protocol is a decentralized stable coin (peging coin) protocol built entirely of AMOs (Algorithmic Market Operations). We do our best effort to acquire more real yield for the protocol users.

atETH is a full-collateralized token pegging with ETH. It utilizes AMO to control its pegging for the Atoll ecosystem and earn yields from the fluctuating market. (Same with other assets like atS).

AMO

Algorithmic Market Operations (AMOs), initiated by Frax Finance, allows the protocol to carry out custom monetary policy. With the large fluctuation during the bull market, it brings tremendous yield for Frax's fractional collateral model. Other protocols including Inverse Finance ($Dola) and Angle Protocol ($agEUR) have carried out similar products to scale their stable coin usage and earn income. The scale of AMOs can, in some cases, exceed their original stable coin usage, bringing TVL and incredible income for the protocol.

Pegging Tokens

With the leveraging of the DeFi Lego and the development of the DeFi landscape, the demand for pegging tokens (e.g., Liquid Staking Derivatives (LSD) and Liquid Restaking Token (LRT)) is increasing. Unlike traditional USD stable coins, the relative price of LSDs and LRTs with their pegging target token can vary within a wider range due to market demands and the delay in withdrawal time. It has become a commonly known arbitrage opportunity to purchase pegging tokens when they depeg and sell after they catch up on their target asset. As an example, the ezETH depegging would have earn anyone buying at its lowest price an exaggerating income of 25% within a couple of hours.

Atoll Protocol

Atoll Protocol builds upon Frax's AMO concept, using AMO as the main component to create a novel multi-peg mechanism. This mechanism serves as a "liquidity router" connecting various pegging token (LSD/LRT) products, amplifying market fluctuations to generate higher yields. LP (Liquidity Provider) participants only need to engage in farming, while the protocol's AMO automatically executes complex buying and selling strategies, distributing profits into the LP pool.