# Smart Contracts

Protocol which controls and manages the on-chain components of collateralized debt positions, vault management, creation and annhilation of debt, minting and burning of the stablecoins and our "Silurian" stability module.

 

Rules Based Smart Contracts Azos modules are smart contracts that are capable of autonomously managing protocol resources and debt. At all times, they must abide by two simple rules: 2.3.1. Azos modules must take actions that close the spread between market price and redemption price. 2.3.2. Azos modules must take actions that increase the total equity of system resources.

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