# Dynamic Spread (Single sided) Single-Sided Dynamic Spread is an automated market making strategy that starts with tokens deployed on one side only, and establishes two-way liquidity after initial accumulation through exponential price auctions. ### How It Works 1. Begins with token-only deposits and establishes reserves through trading 2. Uses exponential price auctions to discover and adapt to market prices 3. Tracks weighted average prices to ensure profitable rotations 4. Transitions from accumulation to balanced market making over time ### Key Benefits * **Capital Efficiency:** Start market making with just tokens; no need for both assets upfront * **Continuous Two-Way Liquidity:** Establishes balanced liquidity through trading * **Market Adaptability:** Adjusts to trends while protecting against adverse movements * **Opportunity Capture:** Can benefit from price appreciation during the accumulation phase ### Ideal Use Cases * When lacking stable reserves but wanting to provide liquidity * In situations requiring capital efficiency * With tokens that have natural price appreciation expectations * Projects looking to bootstrap liquidity without significant stable reserves ### Technical Parameters * Initial token allocation * Target spread parameters * Auction curve settings * Cost basis tracking preferences --- # 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/strategies/dynamic-spread-single-sided.md?ask= ``` 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.