We could even structure it so that if a short was activated and didn’t get liquidated, there’s some sort of threshold of pullback where we close the short(support buy) then automatically reopen it at the level.
So you basically have an automatic support buyer or marginal buyer depending on price action.
I’ve got an absolutely insane idea.
The kind of idea that’s so stupid that it just might work but it’s probably just stupid if I’m being real..
Keep in mind that our leverage is real, meaning anytime a position is taken tokens will actually hit the pool(unlike synthetic perps).
Now with that in mind, as we all know, the market is super low on liquidity/volume right now and the big issue most tokens are having is that they get stuck by scalpers/swing traders at almost every level and it’s very difficult to get out of ranges or maintain pumps. There simply isn’t enough marginal buyers.
What if I were to use the dev tokens to layer shorts at different levels all the way up which would basically act as a marginal buyer as it got liquidated 😅 Now obviously it would require the short to open first which means a sell first but after it’s open it becomes a forced buyer at a higher level(marginal buyer).
Now this is an all or nothing approach meaning if we did it and didn’t succeed, the liquidity pool back at the bottom ($50k) would not be enough to support every seller although there still would be some due to the full range DefiTuna pool albeit much less.