# Auto Buyback System

The Auto-Buyback System is a crucial element of the Nemesis PRO that aims to maintain a stable and sustainable price for NMSP. To achieve this goal, the system uses the Treasury's reserves to buy back NMSP tokens, which increases the value of the remaining NMSP tokens. This system consequently pushes NMSP value positively due to its nature. 100% of NMSP bought by the system will be sent to the Treasury Reserves to ensure that the protocol's reward pools of NMSP are sustained.

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The Auto-Buyback System operates continuously, regardless of market trends or price fluctuations, and is designed to function optimally at all times. The system may be affected by obstructions or issues that negatively affect the protocol, which could temporarily pause the system. However, once the issue is resolved, the system will resume regular operation and continue to fulfill its intended purpose.
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There are two main components that provide Liquidity to the Auto-Buyback system to allow it to operate seamlessly, which are explained below: \
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**Nemesis Treasury Stable Reserve Assets**: Nemesis Treasury smartly allocates 25% of its RFV (stablecoin holdings) to the automated buyback system at the start of each month. Take into consideration that regarding the upward or downward trend situations, the Auto-Buyback System and monthly allocations aren't affected and keep functioning regardless. \
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**Nemesis Treasury Protocol-Owned Liquidity Assets via LMS**: 2% of LP will be withdrawn from the POL by the LMS system in order to bolster & reinforce the aforementioned Automated Buyback System as well as strengthening the price impacts of buybacks by decreasing the number of tokens in liquidity and accelerating the frequency of buybacks. An equal amount of BUSD and NMSP will be withdrawn during this process, and all of the BUSD will be allocated to Auto Buyback Wallet, while all of the NMSP will be sent back to Treasury Reserves.\


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The Auto-Buyback System is designed to operate semi-autonomously, requiring occasional manual intervention to fill the buyback wallets. This approach ensures that the system functions optimally and efficiently at all times while also allowing for human oversight and control.
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