Algorithmic Market Operations (AMOs)
Algorithmic Market Activities (AMOs) are techniques that automatically control the supply of algorithmic stablecoins. They oversee the stablecoins’ scalability, decentralization, and transparency in addition to the collateral ratio.
If a stablecoin offers an AMO solution, it is more likely to see the growth and magnitude necessary for acceptance. AMOs also do away with the requirement for a central staff to make internal decisions as smart contracts would fill that function. As a result, there is less chance of human error and manipulation.