I joined the Hive Blockchain (formerly Steem) in 2017. In May 2021, I announced the Cent Project. Since my introduction to Hive-Engine, I have been using almost all its features. I have gained experience in liquidity pools, token trading, token management, tribal project creation/management, etc.
The study has been quite productive since its announcement. However, low transaction volume and lack of liquidity in Hive-Engine were among the problems we encountered. At the same time, we ran the study for a long time with very little capital. With the Trade Token Study, we will manage trading operations, market making, and liquidity provision together. We will distribute the study rewards using the Hive/Trade liquidity pool.
Token name: Trade
Symbol: TRADE
Maximum supply: 21,000
Management account: @balina
For token trading:
https://tribaldex.com/trade/TRADE
https://hive-engine.com/trade/TRADE
https://beeswap.dcity.io/tokens/TRADE
There will be no large-scale token sale. Market making, token sales, and token buybacks will be managed together in the token's market. However, we will keep inflation extremely limited. 25% of the proceeds from the token sale will be used for regular token buybacks.
At least 50% of the revenue generated from trading, investing, liquidity provision, etc., on the Hive-Engine will be added to the Hive/Trade liquidity pool as liquidity provider rewards. The remaining portion will be allocated to trading, investing, and liquidity provision activities.
Initially, we have set a price target of 1 HBD (1 USD). However, the TRADE token is not a stablecoin. As the project matures, the token's value will naturally increase. We will increase the buyback amount when the token's value is at or below 1 HBD. When the token's value is above 1 HBD, we will reinvest a significant portion of the project's revenue back into trading and investing activities.
https://files.peakd.com/file/peakd-hive/anadolu/23zbkxjjA2K4Pvvx4Gy93tS8Qk4cJ4G19EoPW1rWvExY6tqrhA4oSwo452E5ABJQpEgct.png
Hello. Let's take Zing Token as an example. In the Hive/Zing market, the trading volume in the last day was $133. In the Zing/Hive liquidity pool, the trading volume in the last day was $401. The situation should be exactly the opposite. In other words, the place where the trading volume should actually occur should be the token market, not the liquidity pool. And the price formation should occur in the token market.
Let me talk about just one of the problems that the current situation will create; The current Zing price in the liquidity pool is 0.00273 Hive. In the Hive/Zing market, it is 0.00263/0.00359 Hive. The price in the liquidity pool should be close to 0.00311 Hive. As long as the token market does not have the trading volume and liquidity advantage, healthy price formation cannot occur, no matter which way the price moves. I chose Zing because it is a known example. 90% of the tokens in the Hive-Engine have the same problem. Arbitrage bots like Mcbot, God0, Konvik etc. provide some balance. However, they do not provide real users with the opportunity to make a profit due to low transaction volume etc.
We have started studies like the one here regarding Cent. One of the purposes of creating this token is to prevent the problems I mentioned. Such things will remain very weak. However, it is necessary to start from a certain stage.
Hello. First of all, thank you for trusting and participating in the project and the 'Hive-Engine Investments' study. First, let me answer your question about the accounts.
- Anadolu account is the creator account of the token. Therefore, a note is seen on the creator account every time a new token is minted. So far, 3,000 Trade tokens have been put into circulation. And all of the tokens were sent to the @centtoken account. The account added 730 tokens to the liquidity pool for LP rewards. 2 Trade tokens are distributed daily in the liquidity pool. All but 505 of the remaining tokens were sold in the Hive/Trade market. 500 tokens were entered into the market as a sell order. 5 Tokens are in the @centtoken account. There is no token distribution other than the tokens distributed in the liquidity pool and the tokens sold by @centtoken. There was no token printing, distribution, etc. other than sending to the @centtoken account. There will be no such distribution in the future.
As for the sales and distribution strategy;
- As I mentioned in the introduction text of the token, I have gained a lot of experience in such matters. However, I must confess :) A large purchase like yours was not expected. Initially, 1500 tokens would be printed and 730 tokens would be added to the liquidity pool. The remaining tokens would be sold in the market. Therefore, some of the users would add their tokens to the liquidity pool, while others would make purchases and sales in the market. Thus, depth, transaction volume and liquidity in the pool would balance each other and become stable.
As a result, 1500 more tokens were sent to the @centtoken account than planned. And the balance was achieved by gradually increasing the sales price. The account does not enter orders only to sell tokens. In addition, it enters a sell order in the token market to protect users who trade in the market from price slippage. To give an example; If @centtoken removes the sell order and a user enters a loaded buy order at the market price, they will encounter extreme prices such as buying 1 Trade token at the price of 500 Hive. Therefore, it is quite natural for the account to enter sell/buy orders at various levels. When the transaction volume, liquidity and depth begin to mature, such measures will not be necessary.
- Token printing and sales by the @centtoken account will only be done when needed according to the strategy of the study. For example; Adding LP rewards to the Hive/Trade liquidity pool, Token sales, etc. However, while doing this, we will of course consider factors such as the price of the token, the inflation rate, and whether the market is in a bull season or bear season.
As mentioned in the introductory text above, when the token was announced, I purchased approximately 300 Trade tokens. The reason for this was to ensure that the Hive/Trade liquidity pool was created and started distributing rewards as soon as possible. (Liquidity pool creation fee is 1000 BEE and the fee to activate LP rewards is 100 BEE.) I added some of my tokens to the liquidity pool. I also entered buy and sell orders for some of them to contribute to the formation of depth in the market. I also recommend you to follow the price movements and buy/sell when you see it necessary. In addition to all this, constantly evaluate the risks, whether in other cryptocurrencies or Hive-Engine tokens. And take the necessary precautions. I wish you success.
https://he.dtools.dev/richlist/TRADE
https://he.dtools.dev/@centtoken?symbol=TRADE
https://beeswap.dcity.io/pools?search=trade
https://beeswap.dcity.io/tokens?search=trade
[IMAGE: https://files.peakd.com/file/peakd-hive/anadolu/23t74ZhbXSejyBoANyyq4ABFKMt8E2uqQoeUk9z2jfNRH915cb9yso3A9Rx8bBaMNJSUB.png]