Orders.Exchange - Full Protocol DEX Run on BTC
  • Overview
    • What is Orders.Exchange
    • Why create Orders.Exchange?
  • Orderbook DEX
    • Overview
    • Technology & Theory
      • PSBT
      • 0-Sec Multi Transactions
      • Ask Orders
        • Technical flowchart for placing ASK orders
      • Bid Orders
        • Technical flowchart for placing BID orders
      • Nostr Proposal
        • NIP-100
    • Audit Report
    • Service Fee
    • Trade to Burn
  • Orders Swap & Liquidity Pools
    • Orders Swap
      • Overview
      • Technology & Theory
        • Decentralized Architecture
      • Service Fee
      • Swap to Burn
    • Orders Liquidity Pools
      • Overview
      • Technology & Theory
        • Threshold Multisignature
        • Cold-Hot Wallet Isolation
      • Stake to Earn
      • Service Fee Sharing
    • Audit Report
  • Orders Bridge
    • Overview
    • Technology & Theory
    • Audit Report
    • Service Fee
  • Minting is Liquidating
    • Minting is Liquidating
    • Principle Workflow
    • Stake to Earn
    • Service Fee
  • Tokenomics
    • $RDEX
  • Roadmap
    • Orders Roadmap
  • FAQ
    • How to Earn $RDEX?
    • Why does $RDEX have almost half of its tokens in one address, and does this pose a risk?
    • What is the buyback timing and frequency for $RDEX?
    • How does P-LP differ from regular LPs? Do I need to lock my assets?
    • Why are there different reward multipliers in P-LP? How should I choose which multiplier to go for?
    • Is the liquidity I provide to P-LP safe? How can its safety be assured?
    • Why does P-LP differentiate between uni-directional and bi-directional liquidity? What's the differe
    • How are funds transferred between the buyer's and seller's wallets, and do my tokens leave my wallet
    • From a technical perspective, what happens when canceling an already placed buy/sell order?
    • Is the liquidity pool for Orders fully decentralized, and how is it achieved?
    • The world's first Bitcoin-native network supported BID system: How it came into existence
    • How many $RDEX tokens are released daily, and how is it done?
    • After adding LP, how can I make it trade? I can't see this LP on my own trading page.
    • Can I know which P-LP I provided?
    • Why not open RDEX P-LP?
    • The transaction fees are currently high; is there a way to reduce them?
    • What's the difference between orders and other DEXs?
  • Risks & Disclaimer
    • Risks & Disclaimer
  • Team
    • Team Introduction
  • Resources
    • Orders Exchange
    • Twitter
    • Discord
    • Github
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  1. FAQ

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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Last updated 1 year ago