Why invest the LP?
The liquidity pool of TripleFi is designed to be a pool with a good return from trading fee, funding fee, spread and counter-party position. Currently LP can hedge the counter party risk on their own and we will provide different tools and strategies for LP in the future versions.
Spread: The traders trade with a spread, LP will gain potentially from the spread.
Position: When traders open a position, LP has a potential chance to gain if there are realized losses from traders.
There are no cost charges for LP from TripleFi. LP will only pay for the relative gas fee for using the Polygon network.
LP may hold long or short positions. LPs share the positions according to their portion of the pool.
For example, suppose AMM holds 50 BTC short positions and 200 ETH short positions. If some LP has 10% of the liquidity of the pool, the LP has exposure to 5 BTC short positions and 20 ETH short positions.
Besides, the LP’s exposure changes with the traders' total positions changes.