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
  • How It Works
  • Key Benefits
  • Ideal Use Cases
  • Technical Parameters
  1. STRATEGIES

Dynamic Spread (Double sided)

Double-Sided Dynamic Spread implements smart market making to ensure profitability through cost-basis tracking and two-sided exponential auctions that adjust to market movements.

How It Works

  1. Provides continuous two-way liquidity through exponential price auctions

  2. Dynamic spread sizes adapt automatically to market conditions

  3. Auction parameters adjust based on time and market volatility

Key Benefits

  • Guaranteed Profitable Spreads: Cost-basis accounting ensures profitable rotations

  • Efficient Volatility Capture: Optimized for cyclical market movements

  • Manipulation Resistance: Maintains complete control over offered prices

  • Adaptive Trade Sizing: Larger sizes at wider spreads, smaller at tighter spreads

Ideal Use Cases

  • Token pairs with correlation but temporary inefficiencies

  • Markets requiring manipulation resistance

  • Sustainable long-term market making across different conditions

  • Pairs like staked/unstaked versions or synthetic/native assets

Technical Parameters

  • Initial allocation of both assets

  • Spread range parameters

  • Volatility response settings

  • Cost basis tracking preferences

  • Exit speed configuration (fast or slow)

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Last updated 24 days ago