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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