Loot Finance is an algorithmic stablecoin model that attempts to bring extra liquidity and users to the underlying base asset, $CRO, that it is pegged to through a seigniorage model.
The underlying "algorithm" or "mechanism" of the protocol either increases, or decreases the supply of the token with the aim of pegging to 1 $CRO. The protocol also uses other measures to achieve this as further explained in the DAO fund section of these documents. We will also explain further how users can earn yields or profits on both sides of this equation throughout the Gitbook.