# Barista Stability Pool Integration with Liquid Loans

**Barista's Backstop AMM (BAMM) – Enhancing Stability and Capital Efficiency in DeFi**

Barista introduces the Backstop AMM (BAMM), a new DeFi primitive designed to enhance stability and unlock greater capital efficiency within the ecosystem. By democratizing liquidation systems, Barista shifts the profits typically earned by MEV (Miner Extractable Value) and bots directly to the community.

#### High-Level System Design

Barista pools user funds into the Backstop pool, which is utilized for liquidations that occur within the Liquid Loans protocol. While the funds are waiting for a liquidation event, they earn liquidity mining rewards, providing passive income for Backstoppers, those who contribute liquidity to the Backstop pool.

When a liquidation event occurs, the Backstop AMM (B.AMM) smart contract draws the required funds from the pool to facilitate the liquidation process. The collateral seized during the liquidation is then automatically listed for sale. Once the assets are sold, the proceeds are returned to the Backstop pool, and the profits are distributed to liquidity providers.<br>

<figure><img src="/files/F596w3u0MDTFOGM0xf8h" alt=""><figcaption></figcaption></figure>

For more details on B.Protocol, visit their documentation:\
<https://docs.bprotocol.org/master-1>

To gain an in-depth understanding of the V2 B.AMM, refer to the technical documentation here:\
<https://docs.bprotocol.org/technical-documentation/v2>

Barista's integration with Liquid Loans is designed to streamline the management of your Stability Pool position, making the process more automated and efficient. This integration ensures that your deposited USDL is optimally managed, especially during liquidation events.

For a comprehensive knowledge base on Liquid Loans, visit:\
<https://docs.liquidloans.io/>

* You can access this anytime via the "Connect" menu on the left-hand side.


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