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-AMMs provides concentrated liquidity at ranges provided by the P-AMM. The P-AMM is designed to provide sustainable pricing bounds that maintain stability and enable the concentration of liquidity in the S-AMMs. A feature of this design is that it induces a peg coordination mechanism, which fosters high liquidity around the peg, while curtailing speculative attacks and bank run effects with a circuit breaker in case coordination breaks.
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 is designed to make Gyroscope the most liquid and scalable decentralized stablecoin, ahead of other designs for the same scale of adoption.