# Transform Downtrends into Sustainable Liquidity Growth with H20

## **Challenge**

Projects want to provide liquidity across price levels. In an always-down environment, a project will run out of treasury, which is negligent to its community and token holders.&#x20;

Using market-making strategies like dynamic spread without controls would lead to projects draining their stables as the price moves consistently against the project token.&#x20;

Accumulating at certain levels is also high risk. Projects often relay experiences where they provide price support to their market maker but don’t have enough capital to support that price and lose money they can’t afford.

Our customers require strategies to provide liquidity while not draining the treasury.&#x20;

## **Solution 1**

Chaining H20 strategies, a customer liquidates tokens and transfers the liquidated tokens into a new vault. In this new vault, they fund market-making strategies. This means that market-making always occurs at a lower price than liquidations. The net result is the project provides liquidity, generates volume and ends up with more tokens than they started.&#x20;

## **Solution 2**

A customer offers liquidity in a token that trades more correlated with their token than USD or ETH, extending the range at which liquidity can be offered.&#x20;

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXc1zspxbIYZC5ksr211SiaAQs_kLSfjGPjeEFGgwTY7nW_c7svEgL7x57Sg-4Jrb7m-sPrUx0n6uXaxGZeumgwH8QEdilOi7RBA_5RAJy3yx2tX8UIdbllQ62xORpqDWsVi54uNiw?key=13J2LuC89aQoSDD68cCZp4JA" alt=""><figcaption></figcaption></figure>

## **Result**

Over three months:

* **H20 strategies:** (running on Raindex) offer constant liquidity at all price levels for a top 1000 token.
* **H20 strategies:** liquidating first, funded market-making strategies (offering liquidity on both sides), which were able to trade at lower price levels then perpetually

[Contact us to take control of your token, grow your treasury, and create sustainable market-making.](https://t.me/Peter_Donaldson)


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://h20finance.gitbook.io/h20-docs/case-studies/transform-downtrends-into-sustainable-liquidity-growth-with-h20.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.
