> For the complete documentation index, see [llms.txt](https://ark-defai.gitbook.io/ark/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ark-defai.gitbook.io/ark/4.-layer-1-or-economic-laws-of-ark-defai/4.3-arks-two-major-economic-support-systems.md).

# 4.3 ARK's Two Major Economic Support Systems

#### POL (Protocol-Owned Liquidity)

**Function:** Protocol autonomously owns LP Tokens, ensuring stable liquidity pools and funding rates.

* A portion of all token issuance and bond outputs flows back to LP composition
* POL pool returns are fed back to Treasury or YRF distribution
* Gradually replaces dependency on "external liquidity mining"

**Strategic value:**

* Reduces dependency on external selling pressure
* Establishes the protocol's autonomous pricing authority and depth control

#### ATS (ARK Treasury System)

**Function:** Protocol treasury, accumulating assets, supporting floor price, and adjusting revenue distribution.

* Income sources: Bond deposits, liquidity mining, protocol revenue, penalties, etc.
* Asset types: USDT, ETH, LP Token, partner protocol assets
* Expenditure purposes: YRF distribution, floor price protection, liquidity injection, governance budget

**Governance characteristics:**

* All assets and fund flows can be audited on-chain
* In the future, can be assisted by AI models for management (risk indicators + allocation recommendations)