What is the role of GP in Multiple. Finance?
We have already spoken about the role of LP. But what is the role of a GP in this ecosystem?
A GP provides the strategies that facilitates liquidity. Once a user becomes a qualified GP, they can make a market using the funds that will be allocated to them by the contract. When a GP withdraws from a market-making strategy, they can get rewards based on the bonus ratio of their current level. The other yields obtained from the strategy belong to liquidity providers that stay in the asset pool. The smart contract will assess the strategies provided by a GP in real time.
The GP with a high yield rate will be elevated to higher levels, which enables them to get more allocated funds and even higher bonus ratios. Conversely, a GP with a constantly poor yield rate will be downgraded.
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.