> For the complete documentation index, see [llms.txt](https://docs.multiplier.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.multiplier.fun/gamba/liquidity-bootstrapping-and-wager-flow.md).

# Liquidity Bootstrapping & Wager Flow

The wagering process is designed to directly boost liquidity

<figure><img src="/files/fNeOG8AO3inawGy9Rt6K" alt=""><figcaption></figcaption></figure>

### **Wager Initiation**

* Users place wagers in any supported currency (ETH, stablecoins, or $GAMBA).

### **Fee & Cost Deductions:**

* A portion is allocated to protocol fees (supporting development and operations).
* Another portion goes to Meme 2 Earn initiatives, incentivizing content creation.
* Any remaining platform EV is automatically swapped into $GAMBA, creating consistent buy pressure.
* This mechanism ensures all platform activity ultimately supports token value and liquidity.

### **Payout Mechanism**

* **Liquidity Injection (not $GAMBA):**
  * The system performs a Just-In-Time (JIT) purchase operation. The remaining wager amount is injected into the liquidity pool.
  * This continuous liquidity loop strengthens price stability and reduces slippage for traders.
* **Liquidity Injection ($GAMBA):**
  * When users win $GAMBA, the system performs 2 operations:
    * $GAMBA tokens are removed from the liquidity pool on the corresponding chain
    * These tokens are immediately used to execute the payout to the winner
  * This cross-chain JIT approach ensures efficient payouts while maintaining optimal liquidity across all supported networks

### **Market Impact**

* This cycle creates natural buy pressure as ETH enters the pool during wagering.
* Simultaneously, it reduces circulating $GAMBA supply as tokens are locked in the liquidity pool.
* Together, these forces create an upward price trajectory for $GAMBA.
* Case Study:
  * We listed $noot at $2m MC, it is currently hovering at $20m
  * Total ETH injected -> 125 ETH ($250k)
  * Biggest Win -> 2 ETH from game - 100x
  * 2.7 ETH from Mommy Buy Fund - 400x
  * Total plays - 31.6K

### **Liquidity Provider Incentives:**

* Liquidity providers earn from trading fees generated by both natural market activity and game-driven transactions.
* This incentivizes long-term liquidity provision, further strengthening the ecosystem.