H20 Docs
  • H20
  • On-chain Token Economy Management
  • Non-Negotiables
  • Getting Started
  • Token Lifecycles & H20 Services
    • Token Lifecycles & H20 Services
      • Pre-Launch Phase
      • Post-Launch Phase
        • Treasury Establishment & Management
        • On-chain OTC
        • Peg Management
        • Buybacks
        • Liquidations
        • Trading
      • Vesting Phase
        • Managing Token Unlocks
      • Consolidating and Maturing Phase
        • Sustainable Self-Custody Market-Making
  • STRATEGIES
    • Auction-based DCA
    • Fixed Grid
    • Recharging Grid
    • Dynamic Spread (Single sided)
    • Dynamic Spread (Double sided)
    • Dynamic Spread (Fast or Slow Exits)
  • Case Studies
    • Profitable Market-making With Correlated Token Pairs
    • Profitable Market-making with Uncorrelated Token Pairs
    • Managing Inflation From Token Vesting
    • Turn Low Volume into High Growth with H20
    • Bootstrap Your Token with H20
    • Bring CEX-Style Trading On-Chain with H20
    • Stabilize Your Token Peg with H20
    • Capture Value from Price Run-Ups with H20
    • Transform Downtrends into Sustainable Liquidity Growth with H20
  • Security & Risk Management
    • Security Model
    • Risk Management
  • Reporting
    • Reporting
      • Example Reports
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On this page
  • Challenge
  • Liquid staking token de-pegging during reward distribution.
  • Solution
  • Result
  1. Case Studies

Stabilize Your Token Peg with H20

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Last updated 1 month ago

Challenge

Liquid staking token de-pegging during reward distribution.

A liquid staking token would frequently de-peg during reward distribution. The community would manually trade the de-peg on a DEX and push it back up. Still, the lag was damaging the project, its reputation, and the network.

Solution

Using H20 liquidity strategies, community members were able to profit off the de-pegging programmatically, which provided liquidity to offset the de-peg. After several months, the de-peg was negligible, and the liquidity remained if required.

Result

Over three months:

  • H20 strategies: (running on Raindex) accounted for 1% of the total transactions and 1% of the total volume.

  • These trades kicked in when the token was de-pegging and brought the token back to the peg.

  • H20 delivered: a better token trading environment for the project and the community.

  • H20 allowed: the community to profit off the de-peg with minimal capital.

Token de-pegging?

Contact us to stabilise your peg.