Multiple Protocol Product Overview: A Decentralized Fund Built on Uniswap v3

Chasing ups and downs seems to have become the norm. Although many people hope to benefit from market fluctuations, unfortunately, their judgments about the market are often preconceived - they have a good awareness of risk control and risk in the market, a perfect trading system, and reasonable capital management methods And only a small number of traders strictly implement it.

And even more so in the world of DeFi. Although Uniswap v3 hopes to improve capital efficiency by introducing the concept of "concentrated liquidity", it also raises the participation threshold to a certain extent. Today, many people are still using Uniswap v2. This means that there are still a lot of DeFi users who cannot enjoy the efficient capital efficiency provided by Uniswap v3.

Multiple Protocol is a decentralized financial platform based on an active market-making protocol. It aims to provide professional AMM (Uniswap v3) liquidity strategies and operations by professional traders GP under the premise of ensuring safety, and enable user LPs to benefit from it. The product that gets the best bang for your buck.

The emergence of Multiple Protocol has opened up a new exposure - ordinary users can use Multiple Protocol to capture higher interest rates and capital efficiency. With the expansion of the DeFi world, the attributes of Multiple Protocol as a financial tool will become more and more important and become an indispensable part of the ecology.

The importance of tools

In the savage growth of the DeFi world, lending, trading, options, insurance, liquidity mining, and asset management sectors took turns and achieved considerable development. However, this also leads to the complexity of the chain ecology, and due to the complexity of the chain, the threshold for ordinary people to participate in financial activities on the chain is extremely high.

The emergence of DeFi specialized tools has solved this problem to a large extent. For example, our most commonly used tool, the Metamask wallet, can help us easily access financial agreements on the chain.

It has been 5 months since Uniswap v3 was launched, relying on its concept of centralized liquidity, dozens of agreements have been born. Most of these agreements belong to the three sectors of liquidity management, trading tools and liquidity mining, and the attributes of financial instruments are obvious. And Multiple Protocol is one of them. Multiple Protocol hopes to achieve a win-win situation in the new Uniswap v3 product ecosystem by matching the liquidity of ordinary users and the top investment strategies of professional traders.

In-depth Multiple Protocol products

The main network of Multiple Protocol products was launched at 16:00 on August 31. At present, the TVL (Total Locked Value) of the Multiple Protocol agreement has exceeded 5.35 million US dollars, earning more than 210,000 US dollars in profits for users, and the highest APY exceeds 73%. (Data as of release date)

The protocol currently supports the pledge of four tokens, namely USDC, ETH, UNI and DAI, among which ETH has the highest total locked value with an APY of 76.12%. USDC APY is 53.82%, DAI APY is 69.48%, and UNI APY is 62.06%.

Among them, we can deposit these four tokens to obtain corresponding benefits. Moreover, users who deposit in LP can also see the invested amount and income through the "My Reward" column. For example, the income after investing 0.5 ETH LP:

And Multiple Protocol also provides detailed real-time data for ordinary liquidity providers. The data includes three sections, namely "Pair Volatillity Token Pair Volatility", "Vault Pool APY Staking Pool Yield", "Fees received Fee Income".

“Pair Volatility” shows us the volatility of a pair of liquidity tokens:

"Vault Pool APY" shows us how the protocol has changed over time in APY:

"Fees received" shows us the protocol's fee income:

The above are the functions available to LP users.

If you want to apply to become a professional trader GP who provides strategies for LP, we can now contact the official application to be a GP. After the application is approved, GP will airdrop an NFT work permit (Work Permit NFT) for it.

GP can participate in market making by creating positions: (The function will be available soon)

For GP, Multiple Protocol has also done a professional data analysis on the situation of each position:

And we can also see the current GP ranking: (GP data source Multiple Protocol Playground)

Among them, POP (Proof of Profitability) Proof of Profitability is an indicator launched by Multiple Protocol. POP can distinguish the profitability of market-making strategies of different GP teams, and determine the use of funds they enjoy in the agreement and the setting of stop-profit and stop-loss lines.

Benefit distribution of Multiple Protocol

For LP users, the profit brought by Multiple Protocol is intuitive, and we can easily see it in our own panel. Multiple Protocol further simplifies the complexity of investing in the DeFi world for us. We can improve our own capital efficiency and reduce capital risk without active market making.

Therefore, what we want to discuss more is the profit distribution of professional traders GP in Multiple.

After LP deposits liquidity, the Multiple Protocol smart contract will allocate their funds to different levels of GPs, and GPs will help LPs achieve maximum capital efficiency through their specific market-making strategies. The security of LP's funds will be guaranteed by smart contracts.

The rights and interests obtained by GP in Multiple Protocol are determined by the PoP value. The higher the PoP value, the better the market-making strategy of the GP. This means that the GP can operate more LP funds, and they will get more and more profits from it-this means that they are less likely to do evil. The benefits of their work far outweigh the chance benefits of doing evil. With the increase in the number of GPs, the financial losses caused by a single GP's misconduct will not be able to affect the overall financial status of the platform.

It is worth mentioning that Multiple Protocol will issue an NFT work permit for each GP, which will record every profit of the GP. It cannot be transferred once used. This is also an application of Multiple Protocol at the NFT identity experience level. It is foreseeable that in the future, this NFT will become a well-recognized proof of ability in the DeFi world-the NFT work permit represents the market-making ability of a professional trader.

The Multiple Protocol native token MUL will play a key role in the distribution of benefits.

In the early days of the project, MUL will be used to set up a fund to motivate early participating GPs. MUL can be used to compensate GP for gas expenses during market making. Second, 50% of MUL will be regularly used to reward outstanding GPs. GPs whose performance has increased rapidly and GPs who have provided high-quality strategies for a long time will be rewarded by MUL airdrops.

In the middle and later stages of the project, the core value of MUL lies in sharing profits with ecological participants. 5% of the platform's profits will be distributed to all token holders who pledge MUL on the platform, and the other 5% of the profits will be used to repurchase and destroy MUL. Users who pledge MUL on the platform will also enjoy the governance rights of Multiple Protocol.

In addition, as the protocol develops and matures, Multiple Protocol will periodically issue additional GP work permits, and MUL will be used to participate in the work pass auction. All GP work certificate auction proceeds of the agreement will be locked in the Multiple Protocol platform as reserve funds.

epilogue

We might as well use the real world analogy, Multiple Protocol is similar to traditional funds - by introducing professional market maker strategies to bring users high returns with low risks. It is a bridge between ordinary investors and professional traders, bringing liquidity funds to professional traders, bringing higher returns to ordinary investors, and achieving a win-win situation. At present, the Multiple Protocol mainnet has been launched for nearly a month. The product is stable and has passed the code audit of security agencies such as Certik. The TVL (Total Locked Value) is still rising steadily and is expected to break through the 10 million USD mark in a short time.

For all investors who want to achieve high capital efficiency through Uniswap v3 centralized liquidity, Multiple Protocol is a rare high-quality DeFi tool. I believe that in the not-too-distant future, more LPs will enter the Uniswap v3 ecosystem through the Multiple Protocol, and jointly promote the expansion of DeFi boundaries.