4.4 Liquidity Management Strategy
XIIID has established a systematic liquidity management strategy to ensure market stability and seamless trading.
Initial Liquidity Pool (LP) Composition An appropriately sized liquidity pool is established at the time of listing to provide a stable trading environment. The liquidity pool consists of a balanced ratio of XIIID tokens and stablecoins, designed to maintain liquidity for a specified period.
As trading volume increases, the liquidity pool can be gradually expanded, with additional liquidity sourced from reserve funds and partnerships. This liquidity management strategy ensures market stability for XIIID tokens, minimizes trading slippage, and provides a smooth trading environment for token holders.
Sell Pressure Management Mechanisms To prevent market instability due to sudden increases in sell volume, the following mechanisms are implemented:
Token Burn Program: Post-listing, up to 5% of the total supply is reserved for strategic burns, automatically activated when sell volume exceeds 20% of daily trading volume and triggers sharp price declines..
Reserve Fund Buy Support: 10% of seed funding is allocated as a buy support fund to stabilize the market, with market buys triggered if the token price falls over 30% below the 7-day average.
By transparently disclosing these liquidity management strategies to the community, XIIID builds trust among token holders and contributes to the project’s long-term stability.
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