What is the composition of the TripleFi liquidity pool returns?
1. Trading fee: TripleFi charges 0.06%-0.3% trading fee and 75% of it goes to LP.
2. Funding rate: in TripleFi, LP will always get funding interest and never gave out funding interest. The rate will be depended on the net position ratio of traders. LP will get 67.5% of the total funding fee.
3. The traders P/L: it is similar to the impermanent loss of swap dex. However, in comparison, it is relatively easier for margin traders to stop-loss or even get liquidated which does not perform in swap dex. Therefore, in a longer run, TripleFi LP tends to provide better returns than swap dex.
What asset will be needed in liquidity pools?
Initially we will support USDT because USDT will be more trader friendly as a margin. However, we will diverse the asset in the next update.
What is the risk and return of taking counter-party risk as LP?
In traditional finance industry like FX and commodity trading market, providing liquidity as counter-party role gives high return in a long run especially when TripleFi introduced new mechanism to minimize the risk of LP. In the next update, hedging tools will be introduced and LP can perform some hedging in the market depends on the market circumstances.