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--- Auto-Generated Description --- This diagram represents a player-versus-player (PvP) matchmaking system, focusing on the dynamic adjustment of player skill levels (MMR) and tracking player performance in terms of wins and losses. In this setup, sources generate resources that simulate player activities and matches, adjusting the individual player skill level and the average skill level of opponents they face. These adjustments ensure that as players improve, the system progressively matches them with opponents of similar or slightly higher skill levels, maintaining a balanced and competitive environment. The mechanics of the diagram include pools to store and reflect changes in player skill (MMR), wins, and losses, which are essential for matchmaking algorithms. Gates and state connections likely manage the logic behind match outcomes and the subsequent effect on player stats. The system aims to create an equilibrium where players face challenges appropriate to their skill levels, illustrating a fundamental concept in game design: ensuring ongoing engagement and fair competition. This approach underlines the importance of skill-based matchmaking in creating enjoyable PvP experiences by adapting to the player's progression and maintaining balanced matches.