Sustainable Market-Making
H20 creates a self-sustaining financial ecosystem by connecting liquidation profits to buyback strategies, which then fund profitable market-making. Here’s how it works:
Capture Profits from Pumps: During price surges, liquidations generate revenue, which is used to build the project’s stablecoin treasury.
Fund Buybacks & Fuel Market-Making: Profits from liquidations are reinvested into buyback and market-making strategies.
Buybacks support the token price during dips accumulating more token inventory for the project's treasury. H20 strategies market makes at a cost basis no higher than the liquidation price so we guarantee profits provide liquidity, give tight spreads and stable prices. Buyback are placed very low so there is no overlap.
This creates a positive feedback loop:
Liquidations fund buybacks and market-making, which stabilize prices.
Buybacks and market-making boost liquidity.
Liquidity attracts more traders, driving volume and profits.
Result: A healthy, self-funding ecosystem where every pump and dump fuels growth—not chaos.
Why It Works:
Self-Sustaining: No need to keep on handing over inventory to an external market-maker.
Market Tooling: Buybacks give projects a tool to benefit from downward trends, instead of trying to fight a loosing battle against the market at the sacrifice of their token.
Price Stability: market-making reduces volatility.
Treasury Growth: Profits accumulate in both native tokens and stablecoins.
Turn volatility into opportunity with H20’s growth circle
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