The first week of March brought a notable uptick in XRP/USDT volatility following broader macroeconomic uncertainty and renewed regulatory discussions in the United States. XRP traded in a range of $1.28 to $1.42 over the period, with intraday swings frequently exceeding 2%. For our market making engine, this environment presented both opportunities and challenges.
Higher volatility generally means wider natural spreads, which increases the revenue potential per trade. Our algorithm detected the regime change through its NATR (Normalized Average True Range) monitoring system and automatically widened quote spreads to maintain a favorable risk-reward ratio. At the same time, the adaptive interval system shortened tick cycles during high-activity periods to capture more trading opportunities, while lengthening them during quieter hours to reduce unnecessary order churn.
On the risk side, inventory management was critical. Several sharp 15-minute candles pushed our XRP holdings temporarily away from the target neutral position. The mean reversion skew component responded by adjusting bid and ask prices to encourage the market to restore balance — buying more aggressively when inventory was light and selling more aggressively when it was heavy. The system performed as designed, with inventory deviations returning to target within 20-30 minutes on average.
Overall, pools running the low-risk strategy saw slightly above-average fee collection during this period. We will continue to monitor conditions as March progresses and will share updated performance data in the platform dashboard. As always, depositors can track real-time metrics through their pool detail pages.