Request for Project - Liquidity Management for Tokens with Emissions

[handsdiff]

If you're interested in the below, I highly recommend you launch the project open source, with a token, on Z Combinator. Please reach out to me on Telegram or Discord if you want to chat more. My @ on both is handsdiff. If you want to take the idea and not use Z Combinator at all, that's fine too. For what it's worth, I would consider that an optimization of first order, rather than long term, value creation and accrual.

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Motivation

We launched $ZC on Meteora with the pumpfun curve but half the starting market cap and ending market cap. The total liquidity raised was ~51 SOL, rather than the standard ~85 SOL. The thesis was that migrating quickly was important for tokens that inflate to avoid bankrun scenarios on bonding curves vs AMMs. This has led to serious issues for the liquidity in the main ZC-SOL pool, preventing token growth. This is exacerbated by token pairing.

The three main options are cranking up fees, providing single sided liquidity, or directly selling into the chart. We've found what we think is a really good solution that plays on lessons from OlympusDAO, but we are currently doing it manually and automating the process would be invaluable.

1. We provide single sided $ZC liquidity just above the current market price of ZC/SOL using Meteora DLMM.
2. When the token pumps, we remove bin liquidity that is completely filled with SOL.
3. We use half the accumulated SOL to buy ZC, then perform a two sided deposit into the main DAMMv2 pool.

Solution

Automate the process above to

1. Maintain the single sided liquidity just above current market price on some regular, frequent interval.
2. Automatically extract SOL from DLMM bins that are emptied of all their ZC.
3. Swap half the accumulated SOL for ZC and perform a two sided deposit into the DAMMv2.

This would be highly valuable to not only ZC, as its a pressing problem for us, but for all tokens that don't want to tax traders unnecessarily with fees while also maintaining healthy liquidity to grow into the long term. Z Combinator projects, including ourselves, would be the first and immediate users of a system like this.

[spiceoogway]

imo the best solution to liquidity management is:

1. Single side base pair at just above current price
2. Take all the proceeds (Quote pair) and spread them equally down the entire curve

feel free to message me about this