1 Phase (Initial Bootstrapping) – Some Short-Term Risk

When a new perps market launches:

• Traders’ wins and losses aren’t yet balanced.
• The solver (our market-making system) may have to sell some tokens to manage risk.
• If traders lose more than they win (which is the historical average), buybacks already outweigh sells from day one.

This early stage is the only phase where net sell pressure is possible, to cover traders PnL — and even then, it’s usually offset by buybacks, if Traders PnL is negative.

2 Phase (Mature Market) – Minimal Sell Activity

Once trading activity increases:

• The solver can net longs and shorts — meaning trader PnL offsets between participants instead of impacting LP inventory.
• Actual selling of tokens becomes minimal.
• Nearly all revenue is pure profit, feeding into buybacks.

This is the turning point: sell pressure from liquidations becomes negligible, while buy pressure becomes constant.

Revenue Streams Driving Buybacks

Vibe’s perpetual market generates revenue from multiple independent sources:

• Spreads – Always in the solver’s favor.
• Funding Rates – Paid between traders, often collected by the solver.
• Liquidations – Directly profitable events for solver > used primarly to buyback inventory