Gyroscope is designed to boost liquidity in a sound and revolutionary way using newly designed automated market makers (AMMs).
Gyroscope includes a Primary-market AMM (P-AMM), through which Gyro Dollars are minted and redeemed when the supply needs to change, and Secondary-market AMMs (S-AMM), through which Gyro Dollars are traded. The S-AMM provides concentrated liquidity at ranges provided by the P-AMM. The P-AMM is also the core behind the Gyroscope peg coordination mechanism, which makes it in the interest of all Gyroscope participants to coordinate on the dollar peg, while enabling the concentration of liquidity in the S-AMMs.
Both the P-AMM and S-AMM designs are AMMs like Uniswap and Balancer pools, but with better optimized pricing rules made possible by the Gyroscope design.
The S-AMM/P-AMM combination makes Gyroscope the most liquid and scalable decentralized stablecoin ever designed and puts it leaps ahead of other algorithmic stablecoin designs for the same scale of adoption.