How we found a token market price and stopped the liquidity loss

Purpose

The primary task of the case was to find a reason for liquidity loss and stabilize the token's state. The secondary focus of the project was to define the optimal token's price and develop a new liquidity management strategy to support rising price level and token liquidity growth.

Service

Consulting, Market Making, Liquidity management

Main Steps

1. Liquidity stabilization issues began with the discovery of a possible negative factors: - The specificity of the token's smart contract; - Analysis of the tokens distribution among the project's audience; - Check up the history of an average price, volume and their changes - Analyze a general number of traded tokens.

- The specificity of the token's smart contract;

- Analysis of the tokens distribution among the project's audience;

- Check up the history of an average price, volume and their changes

- Analyze a general number of traded tokens.

2. The result of the analysis allowed to define an attractive token price for the current audience, forecasting the trades volume.

3. The defined risk level is related to the possibility of the jump-like trading appearance of the token. Therefore, our team designed a price stabilization strategy.

4. Daily reporting allowed us quickly tune the liquidity development strategy according to the traders' reactions and the market's overall state.

5. Calculated new market price allowed to stabilize the token's state and stop the liquidity loss process. A bright display of this became an ideal ratio of buy/sell and a narrow spread.

6. After the price stabilization, Beliquid team started to improve market depth and buy / sell ratio.

Result: rise of the organic volume from 1% to 25% both at Buy and Sell

The tactic of discovery of the market price passed through a controllable liquidity decrease and was successful.

The program implementation results in a clear trend towards organic growth of the traders' activity from the sell and buy.

More substantial liquidity becomes protection from sudden price fluctuations and allows speeding up the organic growth of the trade volume.

Project results helped to create a view of the next steps of the token's development, avoiding previous mistakes.

The first success of the token allowed going ahead and creating a new market of trades—an open pair Token/USDC.

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