Profitable Market-making with Uncorrelated Token Pairs

Challenge

Projects need to maintain liquidity for their tokens while protecting their stablecoin reserves in challenging market conditions.

Solution

H20 implemented specialized trading strategies that allow projects to efficiently provide liquidity using uncorrelated token pairs, enabling sustainable market-making even during market downtrends.

Result

During a persistent bear market, TKN/USDC performance achieved the following with zero slippage and no transaction costs for the strategy deployer:

• 15+ trades executed

• 14.55% ROI achieved (benchmarked against the token pair)

• Increased USDC holdings by 10%

• All within a 60-day period while maintaining broad spreads through varying volatility conditions