What does the GitLab Dependency Proxy do?

The GitLab Dependency Proxy functions as an intermediary for fetching packages, which allows developers to efficiently manage their dependencies. By caching dependencies that are commonly used in projects, the proxy can reduce the time it takes to retrieve these packages, especially in a CI/CD environment where builds are frequent. This means that when a package is initially fetched, it is stored by the Dependency Proxy, and subsequent requests for the same package can be served directly from this cache. This not only speeds up the development process but also reduces bandwidth usage when multiple projects rely on the same dependencies.

The other options don't accurately describe the role of the Dependency Proxy. For example, while it may have a positive effect on application performance, that is not its primary function. It does not serve as a secure file storage solution or specifically track user contributions, making the choice of the Dependency Proxy as an intermediary for fetching packages the most appropriate and correct answer.