📔M3 - Bottom Liner Module

For Token Managers to actively manage the price of any tokens in the DeFi protocols.

Module Overview The Bottom Liner module is a contract designed to enable users to set moving limit trades with the goal of increasing the "bottom line" of a project's token chart. utilizing a programmatic approach, this contract calculates the number of tokens to buy at each price level, effectively managing price swings in a given Pair/Pool.

Use Cases

• By buying any token at specific price levels, token owners can stabilize the price and reduce volatility, thereby improving technical analysis metrics.

• If tokenomics dictate the need for buybacks (and/or token burning), executing them within a preset price range enhances the chart metrics and aligns with predefined strategies.

• Ensuring that the price does not drop below a certain level. This helps establish a price floor and adds confidence for investors.

• Reduce the perceived risk associated with the asset, making it more appealing to potential investors.

Parameters and Inputs

1. Target Increase: determines the desired percentage increase in price during each TradingInterval.

2. Price Reference: The module considers the variation of the token's price against a specific reference, such as USDT/ETH.

3. TradingInterval: specifies the frequency at which trading actions are performed.

4. QueryInterval: Sets the frequency at which price queries are triggered.

5. MinPriceImpact: Defines the minimum acceptable price Impact the strategy can make per iteration (swap). Any amount below this threshold will not trigger a price adjustment.

6. MaxPriceImpact: Specifies the maximum acceptable price impact per iteration (swap).

7. Gas Limit: Sets the maximum gas limit allocated for executing the strategy.

Performance of metrics

1. Price Stability: calculating the standard deviation of its price over a specific period.

2. Trend Building: measures the duration of positive trends created by the module in the token's price chart. It calculates the percentage of time during which the token's price shows an upward trend.

3. Price Floor Establishment: calculates the percentage of time during which the token's price remains above the predefined price floor.

4. Technical Analysis Metrics Improvement: measures the accuracy of technical analysis indicators or patterns when applied to the token's price chart before and after implementing the Bottom Liner module.

5. Calculates the percentage of successful buybacks or token burnings that align with the predefined criteria. A higher success rate indicates better performance in executing these strategies.

6. Gas Efficiency: compares the actual gas consumed to the allocated gas limit. A higher gas utilization efficiency indicates better optimization of gas usage.

7. Comparative Analysis: assigns a performance score relative to the average or best-performing competitor. A higher performance score indicates better performance compared to competitors.