Why are there different reward multipliers in P-LP? How should I choose which multiplier to go for?
The core objective of the P-LP liquidity pool solution is to ensure that BID Orders in Orders can be created at any time to meet users' immediate asset selling needs. One of its defining features is its resilience against market fluctuations. To achieve these goals, Orders offers users a higher liquidity injection allowance.
Given the unpredictable nature of the market, sometimes drastic market fluctuations can lead to much higher market prices. Liquidity provided based solely on prior market rates may become unusable due to these shifts. Consequently, users can opt to provide bi-directional liquidity to P-LP at rates higher than the current market price.
Similarly, if a user provides more liquidity assets to P-LP compared to other users, they stand to gain higher liquidity rewards once that liquidity is utilized. However, in general terms, Orders' P-LP prioritizes the use of standard rate liquidity.
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