Custom Liquidity Distribution Strategy
đź’§ Custom Liquidity Distribution Strategy
Within the Orypton marketmaking system, the Custom Liquidity Distribution model provides a flexible and capital-efficient method for the DAO to manage liquidity across strategic price ranges. Unlike constant or single-range provisioning, this model distributes liquidity non-uniformly across multiple overlapping positions, each targeting a specific function aligned with the fund's dynamics.
⮕ Liquidity Zones
The lower end of the price curve—between $0.01 and $0.02—represents the entry point for new investors attracted by high fund performance. The DAO concentrates liquidity in this zone to absorb increased buying demand while maintaining controlled price appreciation. Between $0.015 and $0.03 lies the rebuy zone, where liquidity is reinforced to support token repurchase proposals approved by DAO voting, especially after inflationary minting events. In the upper range, from $0.04 to $0.05, liquidity is adjusted to manage selling pressure as users potentially exit positions or claim staking rewards.
⮕ Real-Time Liquidity Rebalancing
This structure allows Orypton’s marketmaker to:
Dynamically adjust LP concentration based on market behavior
Optimize execution efficiency without increasing total capital exposure
Maintain price stability through buffered liquidity layers
Reduce slippage in both high-volume buys and redemptions
This tiered liquidity design ensures that capital is deployed where it is most impactful—supporting organic growth, protocol-led buybacks, and user exits—all while enhancing execution depth and protecting the token economy.
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