# How Atlas Works

Reserve Model

Atlas is supported by wstETH and $PONZIE, giving it a strong reserve base and an alternative to the inflationary model used by some other protocols.

&#x20;1\. Reserve Backing:

&#x20;• wstETH provides stability linked to staked ETH rewards.

&#x20;• $PONZIE adds diversified backing, increasing resilience and growth potential.

&#x20;2\. Bond Sales and Buybacks:

&#x20;• Bond Sales in wETH: Atlas issues bonds in wETH, attracting liquidity.

&#x20;• Buyback Mechanism: Revenue from bonds is used to purchase Atlas tokens on the open market, driving demand and allowing Atlas to reissue bonds effectively.
