AMM

Constant-product automated market maker for price discovery, liquidity, and Protocol Treasury intervention.

The Protocol uses a constant-product AMM for the DING/USDC pair. The AMM serves three functions:

• Liquidity: Provides depth for everyday trading
• Price feed: Generates a transparent, manipulable-only-by-scale price source
• Intervention channel: Protocol Treasury can direct surplus USDC into the AMM to buy DING below peg

Manipulation Resistance

An attacker attempting to distort the DING price would need to move the entire AMM liquidity pool, which requires capital proportional to pool depth. As the system grows, the cost of manipulation grows with it.

Primary price source: AMM-TWAP. Fallback: on-chain TWAP. Multiple independent oracle networks provide redundancy.

Treasury Intervention

In Phase 4, when the revenue waterfall is operational, the Protocol Treasury can direct surplus USDC into the AMM to buy DING when it trades below peg. This is not a bailout. It is a market operation: the Treasury buys cheap DING, burns it, and contracts supply.