MOV SuperTx is a new AMM (Automated Market Maker) protocol, it has powerful market making mechanism and great liquidity which can design functional market making for different trading pairs such as stable coins, mainstream coins, altcoins, and synthetic asset. etc.
MOV SuperTx provides liquidity based on reserve pools, so you could also call it a reserve pool market maker. LP(liquidity provider) will provide multiple assets according to the market rates of all assets to realize market making. LP will get system rewards from the tradings fee of the whole market. The price of the market or maintenance relies on arbitragers rather than traditional oracle mechanism. Arbitragers will arbitrage when the exchange rate in SuperTx deviates significantly from its normal value due to trading or external exchange changes. They will buy coins at low cost and sell at a higher price in the external market with a normal exchange rate. Finally, price rate in different markets will be consistent due to arbitrage. This mechanism of pegging prices in MOV to normal market exchange rates through constant high-frequency arbitrage, also known as an on-chain oracle, is one of the most important aspects of the CFMM(Constant Function market maker）.
In this seemingly simple process, there is actually a complex problem of arbitrage and loss: Some liquidity providers(LPs) may not put assets in strict proportion; The internal price deviates from the normal external market seriously; The influence of rapid fluctuation of the external market environment on LP deposit strategy; Super attacks, such as flash loan attacks. Let's summarize it——leveraged by arbitragers and increase the loss of LP which will do harm to the system. But if we can solve those problems through our system and mechanism design to make arbitragers be "white hat" arbitragers, rather than malicious arbitrage through the financial bug. Not only helps to keep the internal rate with external market exchange rates between the seamless anchor, to create a complete on-chain oracle and decentralized trading market, more conducive to all key roles in the system (LP, normal traders, arbitragers) to achieve a win-win balance.
In addition to these key roles, there are some auxiliary facilities, such as single asset proxy conversion, which helps LP deposited in a single asset to be converted into each asset in a proportion (the loss of each asset not deposited in a proportion will be discussed later); Slippage protection mechanism helps normal traders and LP to avoid losses; Black Swan circuit breaker mechanism to prevent some stable coin from a black Swan credit crisis caused by the systemic risk; External market fluctuation monitoring, dealing with extreme market fluctuation by flexibly adjusting key parameters of the system.