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
