How a project stabilized its token price with market-making support

Using ApeCoin (APE) as an example—a project listed on Binance on March 17, 2022—here's how it leveraged market-making support to stabilize its token price.

• Initial Liquidity Injection: Upon its Binance launch, ApeCoin's team collaborated with market makers to inject concentrated liquidity into pools, ensuring sufficient buy/sell orders to prevent sharp price swings.
• Dynamic Order Management: Market makers employed high-frequency trading algorithms to adjust buy/sell orders in real-time based on market supply-demand, keeping prices within a stable range—e.g., adding sell orders during volume spikes to curb excessive rises.
• Market Cap Management Agreements: The ApeCoin team likely partnered with professional market makers (e.g., GSR or Wintermute) to maintain price stability during key phases (like NFT events or ecosystem growth) through dense order placement, boosting market confidence.
• Reducing Slippage Impact: By deepening order book depth, market makers ensured large trades didn't trigger significant price slippage, enhancing the trading experience.

Through these efforts, ApeCoin maintained relatively stable price action post-launch (initially around $7-10), supporting Yuga Labs' Bored Ape ecosystem and attracting more users and investors.