As the TerraMatris crypto hedge fund continues to grow, so does the potential for the TerraM token, our native asset. Providing liquidity for TerraM is a crucial aspect of ensuring that our token remains stable, accessible, and attractive for investors. In this article, we'll explain the importance of liquidity, how TerraM token growth is driven by direct investments and fund performance, and outline our plan to reward liquidity providers as the fund matures.
How TerraM Token Grows
The growth of the TerraM token is fueled by two main factors:
- Direct Investments in the TerraM Token: The more investors buy TerraM, the more its value increases, as demand drives up the price.
- Fund Performance: TerraMatris generates profits through advanced trading strategies, including crypto options trading and collecting premiums. These profits drive the overall value of the fund, which in turn enhances the value of the TerraM token.
The success of our hedge fund directly impacts the value of TerraM, as the profits generated are reinvested into the token, creating a strong correlation between fund performance and token growth.
Our Liquidity Provision Plan
To ensure the TerraM token remains liquid and stable, we have created a liquidity distribution plan. Here's how it works:
- 200 USDC Back to the Liquidity Pool for Every $1,000 Earned: We’ve committed to distributing $200 USDC to the TerraM liquidity pool every time the fund earns $1,000 in profits. This injection of liquidity will help strengthen the token's market position and ensure smooth trading.
However, as we are still in the early stages of growth, we will start the liquidity distribution once the fund's total value reaches $4,000. From that point:
- We will add $200 USDC to the liquidity pool after reaching the first $1,000 in profits, meaning this milestone will initiate the liquidity distribution plan.
- After reaching $4,000, we will distribute $100 USDC for every subsequent $500 earned, continuing this pattern until the fund reaches a total value of $10,000.
3/4 for Liquidity, 1/4 for Buybacks
Our liquidity strategy doesn’t stop at simply distributing USDC. To further strengthen the value of TerraM, we will use 3/4 of the allocated USDC to provide liquidity, enhancing the token’s availability for trading.
At the same time, 1/4 of the allocated USDC will be used for buybacks. This means we will use a portion of our profits to repurchase TerraM tokens from the market, helping reduce supply and potentially increasing the token’s price.
Why Providing Liquidity Matters
Liquidity is critical for any cryptocurrency to thrive. It ensures that TerraM can be easily bought and sold on the market without causing drastic price movements. By providing liquidity, we are making sure there are always sufficient buy and sell orders available, which helps to stabilize the token's price and attract new investors.
Moreover, a well-liquid market creates confidence among holders, knowing they can enter and exit positions with ease. It’s one of the most important factors in creating a healthy and stable token ecosystem.
Conclusion
As the TerraMatris crypto hedge fund grows and continues to generate profits, our commitment to providing liquidity for the TerraM token will further enhance its value and stability. By distributing $200 USDC back to the liquidity pool for every $1,000 earned, and using a portion for buybacks, we are ensuring long-term growth for our investors and the token itself.
Stay tuned as we work toward reaching the $4,000 fund milestone and begin executing this liquidity strategy to support the TerraM token's future success!