Bear Market Project Self-Rescue Guide: How to Create Liquidity Using Perpetual Contract Mechanisms
By dismantling the hidden costs of market makers and using a two-way lending protocol to transform perp funding into cash flow for token holders, idle inventory is activated, saving millions of dollars.
➤ The article proposes a novel mechanism for crypto project teams to generate liquidity and cash flow during bear markets by leveraging perpetual contract funding rates and a two-way lending protocol, rather than relying on traditional market makers. ➤ It details how project teams can transform idle token inventory into revenue-generating assets by allowing token holders to earn funding through inverse products and enabling market makers to borrow tokens for hedging via positive products, thereby creating a more balanced market. ➤ The guide provides a checklist for project teams to assess existing market-making contracts, evaluate their token inventory's yield potential, identify suitable protocols, and strategize for cold-start entry to foster organic liquidity and reduce reliance on costly traditional methods.