3 Key Actors 🧑💼 👩🚀 🧙
There are 3 key actors in the prePO system, each with their own unique responsibilities and incentives.
Liquidity Providers (LPs) provide liquidity in the form of USD stablecoins to prePO Markets.
LPs are incentivsed with 3 Layers of Rewards, and enjoy minimized risk.
Put simply: any LPs who are yield farming with stablecoins would be better off providing liquidity to a prePO market in order to capture additional rewards.
Traders open long or short positions in prePO Markets, the net sum of their activity determining estimated valuations of pre-public entities.
If a Trader exits their position at a better price than they entered in at, they’ve made a profit. The profit comes from other actors in the system.
However, it's not a zero-sum game, due to the 3 Layers of Rewards. A Trader could be making a loss on a WeWork long position, but still make an overall profit due to PPO incentives and collateral farming!
Finally, we have our beloved pregens (PPO token stakers), who participate in the prePO DAO governance system.
Pregens are able to make and vote on proposals, including proposals for the creation and settlement of prePO markets.
PPO token incentives ensure that Pregens are rewarded for their efforts, and that their incentives are aligned with the best interests of the protocol.