> For the complete documentation index, see [llms.txt](https://goldilocks-1.gitbook.io/goldidocs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://goldilocks-1.gitbook.io/goldidocs/locks/the-goldilocks-amm.md). # The Goldilocks AMM At the heart of the Goldilocks project are the LOCKS token, and the bespoke AMM that governs its behavior. This AMM will contain two basic liquidity pools, the floor supporting liquidity pool (FSL) and the price supporting liquidity pool (PSL). Both pools will be comprised entirely of HONEY, Berachain's native (fully collateralized) stablecoin. Using these pools, the AMM has the ability to burn and mint LOCKS through the following basic mechanisms, (i) Firstly, a user can always **redeem** LOCKS tokens in exchange for a proportional share of the FSL. More precisely, if S is the total supply of LOCKS, then the AMM allows a user to redeem 1 -LOCKS token for a quantity of HONEY equal to FSL/S. We call FSL/S the \`floor price’ of LOCKS, since it represents a minimum price for which a LOCKS token can always be redeemed at the AMM. Upon redemption, the AMM burns all the redeemed LOCKS tokens, ensuring that redemption can never lower the floor price of the remaining tokens. (ii) As well as redeeming LOCKS for the floor price, users can also **sell** LOCKS to the AMM at the market price, which will always be at greater than the floor price. In that case, they will burn their tokens in exchange for a proportional share of the FSL as well as some amount of the PSL (see the \`[Price Function](/goldidocs/locks/the-price-function.md)' page for a description of how the market price is determined by the AMM). (iii) Finally, users can **buy** LOCKS from the AMM by paying the market price (never less than the floor price), in exchange for which the protocol mints them the appropriate number of LOCKS tokens. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://goldilocks-1.gitbook.io/goldidocs/locks/the-goldilocks-amm.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.