CEX
1. Introduction:
This document outlines the market making and volume generation strategies employed for tokens on Centralized Exchanges and platforms. These strategies aim to enhance liquidity, facilitate trading, and optimize volume generation for tokens.
2. Market Making Strategy:
2.1. Objective:
The market making strategy aims to create a liquid trading environment for tokens by consistently placing buy and sell orders on the order book.
2.2. Approach:
Maintain a constant product of Token amount and USDT amount to ensure balanced exposure. Simultaneously place both buy and sell orders on the order book to provide bid-ask spread. This spread helps reduce the gap between buying and selling prices, encouraging trading activity.
2.3. Implementation:
Utilize API calls to place buy and sell orders at strategic price levels on the order book.
Calculate order prices based on desired spread and market conditions.
Regularly monitor the order book and adjust order prices as needed to adapt to market dynamics.
2.4. Daily Recalculation:
Reassess and recalibrate buy and sell orders once a day to align with current market conditions.
This daily recalculation ensures the spread remains competitive and responsive to market changes.
3. Volume Generation Strategy:
3.1. Objective:
The volume generation strategy aims to stimulate trading volume by placing artificial buy and sell orders that are executed immediately, creating an impression of active trading.
3.2. Approach:
Identify the nearest buy and sell order prices to the current market price.
Generate random prices between these levels to emulate genuine price movement.
Place buy and sell orders using separate accounts with zero fees to avoid balance depletion.
3.3. Implementation:
Automate the process of selecting random prices and generating order amounts within a specified range.
Execute buy and sell orders on separate accounts simultaneously to ensure immediate execution.
The goal is to create a perception of trading activity without risking actual balances due to the zero-fee nature of the accounts.
4. Risk Management:
Regularly monitor the performance of both strategies to ensure they align with the intended objectives.
Implement safeguards to prevent excessive order placement or unintended market impact.
Monitor regulatory changes that might affect the execution of these strategies.
5.Portfolio
6. Conclusion:
This documentation provides an overview of the market making and volume generation strategies applied to the tokens on Centralized Exchanges. By implementing these strategies, the goal is to enhance liquidity, promote trading, and contribute to a dynamic trading environment for your token. Contact us for competitive pricing.
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