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.
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.
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 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:
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