> For the complete documentation index, see [llms.txt](https://h20finance.gitbook.io/h20-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://h20finance.gitbook.io/h20-docs/strategies/dynamic-spread-double-sided.md).

# 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)