️ Presenting the LYDRA/HYDRA Liquidity Strategy Proposal.
04 Jul 2023, 18:28
⚡️ Presenting the LYDRA/HYDRA Liquidity Strategy Proposal
The launch of the LYDRA/HYDRA pool will be an important milestone for the Hydra ecosystem and usher in a completely new era for the network. As such, it is important to think about the liquidity strategy and analyze its effects with care.
This post outlines the proposed strategy for the launch of the LYDRA/HYDRA liquidity pool.
🔹 The main objectives of the strategy are defined as:
1) Achieving a strong liquidity depth that would allow network participants to execute high-value trades with little slippage
2) Minimizing unfair situations where one or few individuals take advantage of a preferential rate at the exact moment of deployment, just because they managed to make the trade a few seconds faster
3) Mitigating the risk of HYDRA being dumped due to an artificially elevated rate
4) Ideally, achieving a net deflationary impact on HYDRA via lockup of initial HYDRA liquidity as part of the launch
5) Allowing market forces to go into an unbiased price discovery and open up opportunities for leverage and hedging opportunities
Read the proposal below: