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  1. Protocol Concepts

Asset exchanges

The Mento components that orchestrate asset exchanges

PreviousReserveNextBroker

Last updated 1 year ago

The Mento protocol provides a mechanism to exchange assets with the Mento Reserve. This mechanism serves two roles. The first role is in service of the stability of the protocol by providing arbitrageurs a way to trade stables assets with the reserve at a protocol-enforced rate with respect to the collateral, thus closing the arbitrage cycle with other markets (DEXs or CEXs) and enforcing the stable asset pegs. The second role is as a distribution mechanism for Mento stable assets by providing low slippage, and high bandwidth expansion capability against forms of collateral that support that.

Asset swaps in the Mento protocol happen with the aid of these components:

  • The is responsible for orchestrating exchanges, managing the treasury, and enforcing trading limits.

  • are abstract components responsible for pricing asset swaps, that implement a unified interface. The Broker relies on them when orchestrating the trades.

  • The is the first exchange provider implemented. It is a generalization of the vAMM pools in Mento v1.0.0.

Broker
Exchange providers
BiPoolManager