> For the complete documentation index, see [llms.txt](https://h20finance.gitbook.io/h20-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://h20finance.gitbook.io/h20-docs/case-studies/profitable-market-making-with-correlated-token-pairs.md).

# Profitable Market-making With Correlated Token Pairs

### Challenge

To successfully make markets using the project's own token and a correlated asset (e.g. the token underpinning the blockchain network they trade on) rather than depleting the treasury's valuable store of stable coins.

### Solution

Market-make the project token with their network token. The goal is to use the project's own token (high supply low value) and grow the network token.

### Result

Despite operating in declining market conditions, H20's strategies delivered the following performance with zero slippage and no gas costs to the strategy deployer:

1. **TKN/WPOL:** <mark style="color:green;">**600+ trades**</mark> on Polygon with 157.7k TKN and 15.4k WPOL volume, <mark style="color:green;">**25.98% ROI**</mark> in WPOL (benchmarked against the token pair), <mark style="color:green;">**increased WPOL holdings by 2,724**</mark> in under 60 days. Strategy maintained optimal spreads throughout market volatility.
2. **TKN/WPOL**: <mark style="color:green;">**100+**</mark> trades on Polygon with 14.52k TKN and 7.8k WPOL volume, <mark style="color:green;">**708.96%**</mark> ROI in WPOL, <mark style="color:green;">**increased WPOL by 2,481**</mark> in under 15 days (**56.7% APY**). Performance achieved despite significant market downturn.
3. **TKN/WETH**: <mark style="color:green;">**60+ trades**</mark> on Base with 0.46 WETH and 175.4k TKN volume, <mark style="color:green;">**12.08% ROI**</mark> in WETH, <mark style="color:green;">**increased WETH by 0.2**</mark> in under 20 days. Strategy executed efficiently without requiring gas payments from the deployer.