# Portfolio Management System

<figure><img src="https://3616471638-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F8tjfwh5kqfR9hmQCbfP7%2Fuploads%2FVNyBas7mkttdIdXY4sG1%2FArchitecture%2017.png?alt=media&#x26;token=2943e20a-d140-45c2-8051-6b6cfad9a3e9" alt=""><figcaption><p>Portfolio Management System and related components digram</p></figcaption></figure>

**The Portfolio Management System (Portfolio MS)** is a core module responsible for managing the allocation of liquidity across the protocol. By leveraging the actual and target [gigaAsset](https://docs.enjoyoors.xyz/system-architecture/gigaassets) ratios from [the gigaCDP,](https://docs.enjoyoors.xyz/system-architecture/enjoyoors-orchestrator-appchain-l3/gigacdp) it ensures an up-to-date understanding of the available liquidity. Using this information, **Portfolio MS** directs liquidity to target protocols selected for their potential to generate rewards, aligning with allocation weights, parameters, and [target protocols](https://docs.enjoyoors.xyz/system-architecture/public-blockchain-infrastructure/target-protocols) defined by [Governance](https://docs.enjoyoors.xyz/system-architecture/enjoyoors-orchestrator-appchain-l3/governance).

When the actual and target levels of [gigaAssets](https://docs.enjoyoors.xyz/system-architecture/gigaassets) fall outside of predefined acceptable bounds, Portfolio MS initiates a rebalancing process to maintain protocol stability. This process may involve withdrawing liquidity from certain protocols through [the gigaAsset Manager](https://docs.enjoyoors.xyz/system-architecture/public-blockchain-infrastructure/gigaasset-manager) and burning excess [gigaAssets](https://docs.enjoyoors.xyz/system-architecture/gigaassets) to reduce the circulating supply. Alternatively, when more liquidity is needed, a request can be sent to [the gigaAsset Manager](https://docs.enjoyoors.xyz/system-architecture/public-blockchain-infrastructure/gigaasset-manager) to mint more [gigaAssets](https://docs.enjoyoors.xyz/system-architecture/gigaassets) and allocate them to the selected protocols.

In addition to target protocols, the **Portfolio MS** allocates a portion of [gigaAssets ](https://docs.enjoyoors.xyz/system-architecture/gigaassets)to [AMM pools](https://docs.enjoyoors.xyz/system-architecture/public-blockchain-infrastructure/amm-pools) to ensure that sufficient liquidity is available for users.