# Elixir AMO
The Elixir AMO is a liquidity management tool designed to take advantage of the funds built up by the Transmuter. Excess underlying assets in the Transmuter are sent to third-party liquidity pools via the Elixir AMO to rebalance the alAsset price and generate yield.
The Elixir AMO removes assets from the liquidity pool when they fall below a target price, stabilizing the alAssets. The Elixir AMO enhances the sustainability of the Alchemix protocol by generating additional revenue streams and providing an additional lever for managing the system.
## Key Features
### **Automated Market Operator**
The Elixir AMO automates liquidity management by deploying excess funds from the Transmuter into yield strategies, effectively rebalancing liquidity pools.
### **Price Stabilization**
The Elixir AMO can withdraw alAssets to stabilize prices when they fall below the target price, helping to mitigate volatility and increase stability.
### **Revenue Generation**
Deposits into liquidity pools to generate additional revenue for the protocol.
### **Flexible Withdrawal Mechanism**
The Elixir AMO offers the flexibility to withdraw alAssets and remove them from circulation when necessary, providing faster-acting influence over the alAsset supply than the Transmuter alone can offer.
### **Sustainability**
By enhancing alAsset management and generating additional revenue streams, the Elixir AMO contributes to the long-term sustainability of the Alchemix ecosystem.
## How it works
1. **Transmuter Accumulation:** Excess funds accumulate in the Transmuter.
2. **Transfer to Elixir AMO:** When significant, these funds are deployed to the Elixir AMO.
3. **Elixir AMO Deposits:** The Elixir AMO deposits the funds into corresponding liquidity pools, rebalancing the pools and increasing the alAsset prices.
4. **Yield Generation:** Yield generated from these deposits (such as CRV, CVX, or similar) creates additional revenue for the protocol.
5. **Removing Assets:** The AMO can also remove alAssets from circulation as a faster-acting method of influencing alAsset supply and price.
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For detailed information on how it works, see [The AMO: The Elixir](https://v2-docs.alchemix.fi/alchemix-user-docs/resources/guides/the-amo-the-elixir).
{% endhint %}
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