On March 11th, YES underwent its first major stress test with a $2.3M sell-off. Traditional AMMs often struggle to handle large dumps without severe price collapses. However, Baseline’s V3 Market Maker (BMM) absorbed the pressure efficiently, proving its ability to mitigate volatility while maintaining price stability.

Key Metrics

💰 Total Sell-Off: $2.3M

📉 Price Impact: -15%

📉 Market Cap Drop: $61M → $51M

⚖️ Liquidity Depth: Adjusted dynamically to absorb large sells

Without BMM, a standard XY=K AMM pool would have resulted in:

❌ -65% price drop

❌ Market cap plummeting from $61M to $21M.

Instead, BMM prevented a catastrophic crash, keeping YES stable.

Understanding the Baseline Market Maker (BMM)

BMM is a new liquidity infrastructure designed to provide deep liquidity and protect against extreme volatility.

Single rebalance() operation – replaces multiple complex liquidity actions (bump, slide, sweep, drop) with a single efficient function.

Leveraged Anchor LP – increases liquidity depth by borrowing reserves against buybacks within a set range.

Asymmetric Liquidity Design – prioritizes more liquidity on the sell-side to absorb large dumps while allowing price to move up easily.

💡Unlike XY=K AMMs that distribute liquidity evenly, BMM concentrates liquidity above the floor. This ensures higher liquidity depth during sell-offs while maintaining a strong price recovery mechanism.

How BMM Handled the $2.3M Sell-Off

A step-by-step breakdown of how BMM adapted to extreme selling pressure:

1️⃣ BMM started with 254 ETH liquidity depth (-2%).

2️⃣ 530 ETH sell-off – BMM absorbed the dump, adjusting liquidity depth to 370 ETH (-2%).

3️⃣ 666 ETH additional selling – BMM reabsorbed supply, increasing liquidity depth to 486 ETH (-2%).

4️⃣ An extra 265 ETH sell-off occurred, but the price barely moved due to the deep liquidity buffer.

Final Outcome:

✔️ Sell-off absorbed without major slippage

✔️ Price drop limited to -15%

✔️ Market cap preserved at $51M vs. $21M in a traditional AMM

Real-Time Proof: BMM in Action

In a separate event (see second chart), a trader executed a $137K sell in a single clip.

📊 $137K Sell with <1% Price Impact

Key Takeaways

✅ BMM’s market-making model is resilient against high-volume dumps.

✅ Outperforms traditional AMMs in handling liquidity shocks.

✅ Protects price stability while enabling upside movement.

Dumps happen. But with BMM, $YES didn’t get rekt.

Instead, liquidity rebalanced efficiently, minimizing impact and preparing for future growth.

Next Steps

BMM’s resilience during this stress test sets a new standard for token liquidity infrastructure. As more projects adopt Leveraged Anchor LP, we expect even stronger price performance and deeper liquidity across the ecosystem.

If you’re a token founder looking to protect your token’s price while improving market efficiency, Baseline’s market maker is the solution. 🚀