Matcher: How to Lend (Countertrade)

This section explains the process of a matcher lending against the collateral of the trader's position.

What is a GTK matcher?

A matcher is a lender of tokens against the traders original collateral that is put forward for any given trade. This allows the trader to trade at a higher position. The Matcher balances the trade by automatically trading against the original traders position.

The matcher hedges its exposure by placing the same trade as the Trader on a third-party exchange, thereby reducing its risk. Whether or not the traders position ends in a gain or a loss, the hedged trade protects the Matcher and Interest is accrued for the matcher.

Interest is charged on the tokens lent by the Matcher, which accrues to the matcher's benefit. If the trader's position ends in a loss, the collateral provided by the trader can be used to repay the loan from the Matcher, and the remaining collateral is returned to the trader. However, if the trader's position ends in a gain, the trader can repay the loan from the matcher and keep the profits, minus the interest charged by the matcher.

The GTK platform:

• Allows matchers to provide a lending market for every available on-chain asset

• Allows matchers to enjoy high interest opportunities through concentrated lending