5100 Hive in CTPSB Market Maker
There is one factor that was paramount in the success of the CTPSB token and it's stability. This factor is the liquidity for the token provided on the market. For that, we had created a market maker that always has enough funds to buy back CTPSB tokens. With the increase of the token value, this market maker had to grow as well and it was financed by the spread between buy and sell price.
Over time, this market maker has accumulated CTPSB tokens and Hive in value of over 5100 Hive which is quite considerable.
How does the market maker work?
The market maker updates regularly its orders in the book. It always centers around the theoretical value of CTPSB and puts a buy order 0.01 hive below token value and a sell order at 0.01 hive above token value. Like that the market follows the token value regularly.
The market maker never puts all its assets into the order book. It provides a buy price of 40 CTPSB tokens normally and they will be reset on a regular basis. This allows the market maker to adapt to extreme market conditions and it can make sure that enough money is available to keep the market liquid.
What happens if the market maker runs out of funds?
If the market maker doesn't have enough liquid hive to buy back tokens, we initialize a power down on the ctpsb account. Once the powerdown is completed, the market maker sells the according CTPSB tokens to the ctpsb account which burns the tokens. The market maker has again funds and the number of tokens in circulation is reduced. This means that such an operation has no impact on the token value.
The numbers of this week
The update the previous week took place on Sunday and this week we did the update on Saturday. This means that it was a short week and it translates in lower numbers.
| Assets | Amount | Increase over last week |
|---|---|---|
| Hive Power | 32884 | +70 |
| Tokens in circulation | 9450.4 | -0.7 |
| Burnt tokens | 2048 | +0.7 |
| Token value | 3.48 | +0.008 |
| APR | 13.5% | -1.0% |
Learn more about the CTP Swarm Booster:
A project run by @liotes
Very interesting, thanks for the information.
!BBH
!INDEED
Thanks for stopping by!
The marketmaker seems pretty good to have, but the difference of 0.01 Hive seems a bit tight. Then again, it has worked for quite a while and it's enough for normal uses.
The spread is actually necessary for the market maker to grow in size. Since token value increases over time, the market maker needs to do so as well. I mean the spread can be shortened by people placing orders.
So marketmaker do not sell back CTPSB?
The market maker buys and sells CTPSB by setting buy and sell orders around the token value. It sells CTPSB back to the project only if it runs out of hive liquidity. This can happen when a lot of people sell tokens at the same time.
Thanks for the information.
I am assuming its a bot, did you buy it and how do you set it up?
Curious about it workings and setup.
I want to know more about it. thanks in advance
It would be great to have a bot do all this in the background. So far, I'm setting all orders manually about once a day.
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Ctpsb is among my favorite tokens because of its stability. !BBH
Happy to hear that :-)