Market Making SCALE
SCALE Liquidity
Liquidity that enables trading SCALE is provided by both The Community & The Protocol itself (aka. Protocol-owned Liquidity, or “PoL”).
Market-making strategy of PoL
Traditionally, most of the liquidity resided in the SCALE/ETH vAMM (v2 or k=xy “classic”) pool, and was mostly from PoL.
As part of the transition to the new Scale.Farm branding, all PoL was restructured. v2 LP was reduced on 30th August, constituting 8.78 ETH & 1.48 million SCALE (35k + 35k = $
70k). It was then re-added as a Concentrated Liquidity position on the E3 DEX, with the SCALE to be sold progressively between the prices 0.000_045 ETH to 0.000_097 ETH per SCALE, along with a Floor Order to buyback SCALE between the prices 0.000_004 ETH till 0.000_002 SCALE.
This approach makes sure that as the protocol starts its revival phase, protocol doesnt give away SCALE tokens cheaply, while being able to sell its SCALE holding earmarked for Market Making for ETH, which will be used to bolster the treasury and build a strong backing per SCALE.
At the same time, the buyback floor makes sure that the Treasury doesnt let the price of SCALE fall under where it was before the Scale.Farm pivot, which in USD terms is around $
0.015 - $
0.008, which reflects the price of SCALE in July 2025. This is huge Buy Wall of $
42,000 virtually is enough to buyback more than half of the whole liquid circulating supply of SCALE, which gives all present holders a lot of confidence.
In parallel, each week, Scale.Farm allocates 1% of all emissions towards the Classic Liquidity pool, which currently stands at $
16,000 ($
8k+$
8k), incentivizing the community to build up the Tradutional Pool2 depth.
“Thin” Liquidity & Price Impacts
As of today, as price of SCALE floats near $
0.05 mark, which is 0.000_012 ETH, traders would experience significant price impacts for smaller trades, as the “active” liquidty comes only from the Classic pool with $
8k + $
8k. The bulk of the liquidity remains in the CL position at E3, which kicks in only after prices reach $
0.18, that is, 0.000_045 ETH per SCALE.
For reference, each $
1 moves price up by 0.025%. That is to say, each $
100 buy moves price up by 2.5%, and each $
1000 will move price up by 25%. This happens till the price moves into the healthy zone above $
0.18, whereafter price impacts & slippage are reduced significantly.
As of today, there is roughly a “threshold” of 2 ETH or $
8000, which is the amount of buy pressure needed to move into this low slippage zone. This $
8000 quantizes the Demand for SCALE in the market, coupled with the weekly minted emissions, minus the buybacks from the Recycling Wallet.
Each week, roughly 35000 SCALE are minted (after the recycling). To be deemed healthy, there needs to be a minimum buy pressure of nearly $
1500-2000 each week at current prices, and anything in excess of that pushes us more closer to the healthy zone, reducing the $
8000 gap at present.
“I want to buy but price impact is so high!”
As explained above, this is by design, and not by accident. Our mission is make SCALE an asset worth holding, something that grows in value over time (instead of decaying as per the norm in crypto!)
For that, we need to craft an organic, sustained demand for SCALE. And our setup lets us measure just that, indicating whether the market wants more SCALE or not.
So far, the market has indicated a good demand, moving the price from $
0.007 to $
0.05, marking an increase of nearly 7x in 3 months since July. the market to
So here’s a list of What you can do to buy SCALE at these excitingly low prices today:
1. Setup a Limit order
Our partners OpenOcean, Odos & 1inch provide Limit Orders for buying SCALE with your preferred assets. We suggest you create orders to buy SCALE at the prices you prefer. Your assets (like eth or usdc) that you want to buy SCALE with will stay in your own wallet till the orders are filled, and you can attach an expiry date/refresh your orders. Its a good passive way to buy here without slippage
2. Market Buy from sellers
See a red candle on the chart? Reverse it to secure your entry. Such opportunities are a great way to transfer SCALE from non-believers to those who believe in our long-term vision.
3. Just ape in!
Last option is to just yolo in. You know it takes only 2 ETH to 4x the price from here. Keep in mind that when buying with $
100 here, you will see that you are losing -1.25% of value. But once your buy goes through, You will be the literal force that moves the price by 2.5%. After your market buy, the tokens you hold will be worth +2.5% more!
On the Aggregate, $
8000 of buys would appear to be buying $
4000 of SCALE in the trading apps, but once that order goes through, the SCALE you bought for $
8000 would be worth $
16000 as price moves up 4x from your buy-in!
End game.
The long-term plan for SCALE is to “paint” a chart that looks organic, has no clear “top”, and although bobbing up and down, it overall keeps climbing up and up only, similar to how mature charts like the S&P500 look.
The idea is to manifest a project, that is so sound that the emissions it prints are a force that bring more “permanent value” to the project, instead of fleeting cycles of rewards that people forget, leaving the project high early on, but dry later on.
A great parallel is the mother of Scale, EQUAL. It has paid upwards of $
12 Million to its holders so far, yet today, it has hardly a $
2 Million in Fully Diluted Valuation.
Learning from our experiences, knowing what went wrong, and what could have been done better at a “fundamental” level to avert such situations in the future of SCALE. It draws heavily from our designs at TRENCHES & beyond.
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