Proactive Liquidity Management Strategies to Optimize Passive Earning on Uniswap V3 with Multiple Protocol!

Multiple Protocol
3 min readDec 16, 2021

Uniswap V3 has brought numerous exciting features to advance the DeFi game for its users. However, it might soon become expensive for LPs and GPs who are less aware of the systematic optimization of its smart features or the market dynamics. Thus, Multiple Protocol enters the space to bring the best of both worlds with its advanced and unparalleled features.

Multiple Protocol and the Proactive Liquidity Management Strategy

Multiple Protocol, an Ethereum-based DeFi protocol, allows expert traders or GP (General Partners) to provide smart and professional AMM liquidity strategies that ensure LPs (Liquidity Providers) securely benefit from the best yielding products. Multiple Protocol re-constructs investor relations in the centralized financial world as it bridges GPs and LPs with smart contracts and allows them to work together to earn passive income on Uniswap V3 using Proactive Liquidity Management Strategies.

This unique DeFi protocol launched a proactive liquidity management strategy for the Uniswap V3 market that allows users to participate in various programmable liquidity smart contracts. Multiple Protocol allows expert traders risk-free and collateral-free partnership opportunities with the protocol and its liquidity providers to do their best.

The New Proof of Profitability (POP) Model

To ensure high profitability with advanced security of funds, Multiple Protocol has introduced a whole new system of Proof of Profitability (POP). Liquidity Vault allocation to GPs is based on this POP system that ensures that every role involved in the consensus model has ample motivation and confidence to participate. The Multiple Protocol POP model is designed based on the following four principles:

  • 90% funds will be at the disposal of the most profitable 10%
  • Higher profitability promises more funds allocated
  • Profits will be used to subsidize impermanent loss as a priority
  • Dynamically adjusted stop-profit and stop-loss rules

The POP formula is as follows: POP = Annual% *(MP)(now — actionEndTime)

This POP model makes Multiple Protocol unique compared to all other liquidity management protocols as it enables ranking of GPs based on their performance and allocates more liquidity to best performers.

To further safeguard and protect the interest of users/LP on Mainnet, Multiple Protocol introduces NFT Permit, which is mandatory to get into the protocol. These NFT permits are mintable only after whitelisting through application forms. We believe such advanced security and seamless liquidity management strategy will increase big proportions to participate in Uniswap V3 and maximize market-making benefits for both projects and users.

Uniswap V3 Range Orders and Active Liquidity Management

LP customizability (the ability for LPs to concentrate capital in any custom or individualized price range) on Uniswap v3 introduces ‘Range Orders’ , a new feature to complement market orders. LPs can deposit a single token in a custom price range above or below the current market price trend. If the market price enters into their specified range, they sell one asset for another along a smooth curve while earning swap fees in the process.

On the other hand, Range Orders is quite useful within wider ranges as it may help particularly in profit-taking, buying the dip, and primary issuance events. In the later use case, issuers can deposit liquidity in a single asset and specify the exact range of prices across which they wish to sell their tokens. GPs on Multiple Protocol take care of Active Liquidity Management with the help of Range Orders, optimizing based on market conditions, leaving little to no room for impermanent losses.

Multiple Protocol has already started to gain remarkable attention from the industry with its successful Multiple Alpha Mainnet and the APYs that exceed industry standards with an outstanding performance by GP’s and LP’s.

About Multiple Finance

Multiple Protocol is a Decentralized Finance (DeFi) protocol based on Ethereum that allows expert traders (GP) to provide professional AMM liquidity strategies, which in turn ensures users (LP) securely benefit from the best yielding products.

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