In the current rapidly changing market environment, MITO's core market-making strategy is facing unprecedented challenges. Traditional manual parameter adjustment methods have struggled to keep up with the pace of events and the speed of on-chain friction changes. To address this, we have proposed an innovative "autopilot" control system designed to optimize the dynamic adjustment of market-making parameters.

This system is based on observable variables to drive the interlinked adjustments of price differentials, density, and inventory, transforming the process of "price stabilization—efficiency improvement—replenishment" into a traceable and reproducible closed-loop mechanism. We have selected four key indicators as state variables: the 95th percentile of exit slippage, first-level and fifth-level depth, the conversion rate between unit incentives and actual fee revenue, and the path failure rate. These indicators reflect user experience, market absorption capacity, capital efficiency, and implicit frictions, forming the core evaluation system of the MITO market-making strategy.

The control objectives are divided into three levels: the foundational level ensures that key indicators do not exceed their limits; the performance level is dedicated to improving capital efficiency and maintaining a reasonable market depth structure; the economic level, while meeting the requirements of the first two levels, optimizes resource allocation to ensure long-term returns.

To achieve these goals, we adopted a "feedforward + PID" hybrid control structure. The feedforward mechanism pre-adjusts the inventory and price spread baseline based on the event calendar and unlocking strength, while the PID feedback fine-tunes the deviations from key indicators. This structure effectively handles short-term market shocks, corrects systemic deviations, and dampens excessive volatility, providing a more robust and flexible support for MITO's market-making strategy.

With this intelligent parameter adjustment mechanism, MITO is expected to maintain a competitive advantage in the complex and ever-changing market environment, providing users with a better trading experience while achieving more efficient capital utilization. This innovative approach not only enhances the adaptability and efficiency of market-making strategies but also offers new ideas and directions for the development of the entire industry.