> For the complete documentation index, see [llms.txt](https://keep-finance.gitbook.io/keep-finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://keep-finance.gitbook.io/keep-finance/keep_core/algorithmic-market-operation/hedge.md).

# Hedge

For the AMO to receive sustainable returns, the Keep protocol will locate some option pools, including Ribbon Finance, Stakedao, Thetanuts Finance, and Friktion Finance, and access crypto-structured products on various decentralized networks.&#x20;

To prevent significant drops in the price of the collateral, the protocol will also take into account constructing a controller that takes a set amount of collateral and correctly hedges it with a reverse/short position. This will result in an underlying trade with net-zero volatility. For instance, we are investigating collateral units (such as Eth-iETH) that reverse the asset against the asset itself using Synthetix to create ideal hedges.
