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Liquidity improvement and volatility stabilization


Client`s requirement was to create an optimal strategy to prevent a sharp price decrease amid putting a huge number of volume sell orders in a limited period (dump).


Consulting, Liquidity Provision

Main Steps

  • The BeLiquid team has analyzed the trading token's history to understand the impact of previous cases and develop further token trading strategy.
  • The results pointed out that the optimal solution to the significant volatility reduction would be the combination of two approaches:
  • 1) price maintenance by putting the maximum number of orders at the given price level;
  • 2) applying soft price control by allowing a price to damp or pump in a short period under a trade activity.
  • The benefit of this approach is the minimum token budget for support issues.
  • Balancing between the two approaches depends on the project's reputation risks and available budget for development.
  • It is also important to remember the risks of a "panic sale" — the snowballing selling of sufficient tokens volume due to the panic amid a quick price damp.
  • Beliquid team is confident to manage such risky and difficult strategies due to the skill set of our analytics and quick reaction to order book management.
  • Result: token price stabilized with 50% of originally calculated budget

    Token/USDT trading pair has revert to the average natural volatility. Sellers and buyers trade at a fair price at any moment. The trades chart looks attractive and encourages traders to involve more actively than before.

    Want to clarify something about the case?