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Trading Engine Strategy

Our automated trading engine maintains price stability through strategic buying and selling based on MNAV thresholds, funded by LP fees from Pump.fun.

4-Band Trading System

Band A

MNAV ≤1.151×

Actions:

  • • Buy with 1.51% of SOL
  • • Burn 75% of purchased
  • • Reserve 25% to treasury

Maximum support + supply reduction

Band B

1.151× - 2.25×

Actions:

  • • Buy with 1.51% of SOL
  • • Keep tokens in engine wallet
  • • Build reserves for future ops

Moderate support + accumulation

Band C

2.25× - 3.5×

Actions:

  • • No trading action
  • • Monitor market conditions
  • • Allow natural price discovery

Neutral zone - accumulation phase

Band D

MNAV ≥3.5×

Actions:

  • • Sell 1.51% of tokens
  • • Convert to SOL
  • • Hold proceeds in engine

Profit taking + resistance

Trade Engine Funding

LP Fee Distribution from Pump.fun

Trade Engine Fund
25%

Allocated for automated trading operations. Executes buy/sell orders and burn mechanisms based on MNAV bands.

Treasury Wallet
75%

Builds long-term treasury reserves. Increases backing value and receives strategic reserve allocations.

LP fees are automatically collected from Pump.fun trading activity and distributed according to these percentages. This creates a sustainable funding model for both trading operations and treasury growth.

Execution Parameters

Frequency

Hourly

Trades execute once per hour when conditions are met

24/7 Automated

Trade Size

1.51%

Small, consistent trades to minimize market impact

Per Hour

Safety

Protected

Gradual execution prevents manipulation

Anti-MEV

Strategy Benefits

Price Stability

Automated buying and selling creates natural support and resistance levels

Treasury Growth

Profits from selling at high MNAV flow back to increase treasury backing

Downside Protection

Automatic buying when undervalued provides a price floor mechanism

Self-Sustaining

LP fees continuously fund operations without external capital requirements

Example Trading Scenarios

Band A Example
MNAV = 0.8×

• Engine has 10 SOL available

• Buys tokens with 1.51% of SOL = 0.151 SOL

• Receives ~1,000 PACKZ tokens

• Burns 75% (750 tokens)

• Transfers 25% (250 tokens) to treasury

Band B Example
MNAV = 1.8×

• Engine has 20 SOL available
• Buys tokens with 1.51% of SOL = 0.302 SOL
• Receives ~2,000 PACKZ tokens
• Keeps all tokens in engine wallet for future operations

Band C Example
MNAV = 2.8×

• No trading action taken
• Engine monitors market conditions
• Allows natural price discovery
• Waits for MNAV to move to action bands

Band D Example
MNAV = 4.5×

• Engine holds 100,000 PACKZ tokens
• Sells 1.51% of tokens = 1,510 PACKZ
• Receives SOL proceeds
• Holds SOL for future Band A/B purchases