Multiple Protocol: How to reduce the risk of capital efficiency improvement?

Understanding Multiple Protocol

In-depth Multiple Protocol

Develop strategies

  • Provide liquidity strategies. Multiple Protocol will fully hedge against impermanent losses on decentralized exchanges on centralized exchanges. Impermanent loss refers to the loss faced by funds in the liquidity pool. This loss usually occurs when the proportion of tokens in the liquidity pool becomes unbalanced.
  • Uniswap grid trading strategy. Grid trading is a strategy that uses market fluctuations to make profits. In the process of constant fluctuations in the underlying price, draw a grid on the underlying price, and make the most profitable by adding and reducing positions when the market price touches a certain grid line.

Professional Trader (GP)

Risk Management

  • Macro: Similar to the Bitcoin mining algorithm, 51% attacks are prone to occur when there are fewer mining nodes in the early days, and because some nodes are offline, the network cannot produce blocks. However, with the increase in the number of nodes on the Multiple Protocol platform, that is, the number of GPs, the financial loss caused by a single GP’s evil actions cannot affect the overall financial situation of the platform. Most of the funds are managed by the best-performing teams, and the likelihood of doing evil is lower than those with poorer performance.
  • Micro: Multiple Protocol conducts risk control management for all GP positions. The risk control management method is similar to the role of Liquidator (liquidator) in Compound or AAVE-when the total value of GP is lower than that of LP (liquidity provider) Anyone can liquidate his position when he takes a certain percentage of the total value from him. The liquidator is also the whistleblower, and the whistleblower will also receive certain rewards.

Token value

  • In the early stage of the project, the Multiple Protocol token MUL will be used as a fund for the Pioneer Program (Pioneer Program) to incentivize early GPs. MUL can compensate GPs for gas fees that need to be paid in the process of doing things.
  • Sold at the price of seed round and private equity round to some institutions that can help the development of Multiple Protocol, such as some exchange institutions that can provide liquidity in the early stage, Jubi Labs, Hotbit, and the professional market maker team mentioned above.
  • In the middle and late stages of the project, the core of the Multiple Protocol token MUL is profit sharing.
  • In the future, with the increase in the size of LPs, the system will regularly add GP work permits. Work permits need to be purchased by MUL through auction. The received MUL will be locked in the Multiple Protocol platform as “Treasury funds”.
  • Multiple Protocol initially sets a parameter-5% of all transaction fees, that is, 5% of the profit of the entire platform will be used to distribute to all holders of Stake MUL tokens on the platform. Another 5% will be used for repurchase and destruction.
  • Decentralized governance. Users on the platform Stake will get corresponding voting rights based on the number of pledged tokens and participate in governance.

Future vision

About Multiple Finance

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Multiple Protocol

Multiple Protocol

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http://Multiple.fi - Unlocking the next phase of #DeFi, a playground for expert traders to provide professional trading AMM liquidity strategies on Uniswap V3