# Managing Inflation From Token Vesting

### Challenge

Design a structured strategy to provide a project facing prolonged price declines with an effective way to counteract inflation/vesting sell pressure.

### Solution

H20 designed two strategies, an auction-based DCA and single-sided dynamic spread, to liquidate project tokens and then use the proceeds to market-make by buying the project's token back below prior liquidation baselines.

### Result

Despite challenging market conditions, H20 delivered a meta-strategy that increased a project's token inventory by 6.2k using just over 50% of the liquidation proceeds, with zero slippage and no gas costs.

#### Liquidation Strategy:

* 40 trades executed in a declining market
* 10k TKN liquidated
* 547 USDC acquired
* Completed in just 6 days with optimal execution

#### Market-making Strategy:

* Used 275 USDC (<mark style="color:green;">**50%**</mark> of liquidation proceeds)
* <mark style="color:green;">**65+ trades**</mark> executed with zero slippage
* Volume: 110.31k TKN and 537.14 USDC
* Increased token holdings from <mark style="color:green;">**9.8k to 16k TKN**</mark>
* All within a 15-day period while maintaining appropriate spreads for market conditions
